Trading

Trading Modles

Traders can select between two fee models:

1. Fixed Fee Model:

   • Suited for traders who prefer predictable costs.

   • Settlement prices are sourced from oracles.

   • A fee is charged upon opening and closing a trade:

$$Trading\ Fee= Base\ Fee+\frac{The\ Size}{Max\ Trading\ Size}\times Price\ Impact$$

1. Profit-Sharing Model

   • No fees when opening or closing trades.

   • Instead, a share of the trader's profit is paid to the platform, calculated using the Profit-Sharing Closed Price (P_close) formula:

$$P\ Close(T)=P(t)+\frac{1-Base\ Rate}{1+\frac{1}{abs(\frac{P(T)}{P(t)}-1)\times Rate\ Multiplier}+\frac{Bet\ Amount\times Position\ Leverage}{10^{6}\times abs(\frac{P(T)}{P(t)}-1)\times Position\ Multiplier}}\times(P(T)-P(t))$$

• Where:

  • P(T): Close price

  • P(t): Open price

  • Additional parameters and details are available here.

Funding Fee

Funding fees are charged every 4 hours, based on market-implied rates from major exchanges.

• Positive funding: Longs pay the fee to the vault (shorts receive nothing).

• Negative funding: Shorts pay the fee to the vault (longs receive nothing).

• If a trade is closed before the next funding window, no funding fee applies.

Oracles

Prices are sourced from a weighted average of major exchanges (Binance, OKX, Bybit, and others) to ensure accuracy and reliability.

Liquidation

Positions are liquidated when collateral falls below the required threshold:

$$Collateral\ Value<Position\ Size\times Liquidation\ Buffer$$

$$Liquidation\ Buffer= Min\ (1, Max\ (Buffer\ Rate, \frac{Effective\ Leverage}{10}))$$

Buffer rates vary by asset (detailed here).

Auto-Deleveraging

If a trader’s unrealized PnL exceeds the max profit cap for that token, the position is automatically deleveraged to lock in profits up to that cap.