NLP

Fees

See below for a full breakdown of all fees incurred through the usage of the platform:

Position fee for perpetual trading: 0.1% of position size (open/close) Liquidation fee: $5 Dynamic borrowing fee (interest rate for leveraged/perpetual trading): Traders pay a borrowing fee every hour. The fee is calculated dynamically based on the asset utilization rate: Borrowing fee (per hour) = (assets borrowed) / (total assets in pool) * 0.01% Maximum borrowing fee: 0.01% per hour (at 100% utilization) Swap fee: ranging from 0.1% to 0.8%, The base swap fee equals 0.25% for non-stablecoin swaps (i.e. USDT>ETH, or SYS>USDT) LP minting and redeeming fee: 0% to 0.6%

The base LP minting and redeeming fee: 0.3%

Each asset's fee is dynamically determined to incentivize actions that bring the actual weight closer to the target weight. The minting and redeeming fee decreases whenever adding/removing liquidity would bring the actual weight closer to the target weight, and vice versa.

Opening a Position

Click on "Long" or "Short" on the Trade page depending on which side you would like to open a leverage position on.

Long position:

• Earns a profit if the token's price goes up

• Makes a loss if the token's price goes down

Short position:

• Earns a profit if the token's price goes down

• Makes a loss if the token's price goes up

After selecting your side, key in the amount you want to pay and the leverage you want to use.

Below the swap box you would see the "Exit Price", which is the price that is used to calculate profits if you open and then immediately close a position. The exit price will change with the price of the token you are longing or shorting.

The trading fee to open a position is 0.1% of the position size, similarly there is a 0.1% fee when closing the position.

There is also a "Borrow Fee" that is deducted at the start of every hour. This is the fee paid to the counter-party of your trade. The fee per hour will vary based on utilization, it is calculated as (assets borrowed) / (total assets in pool) * 0.01%. The "Borrow Fee" for longing or shorting is shown below the swap box.

While there are no price impacts for trades, there can be slippage due to price movements between when your trade transaction is submitted and when it is confirmed on the blockchain. Slippage is the difference between the expected price of the trade and the execution price, this can be customised in the "Settings" menu by clicking on the "..." icon at the top right of the page.

Stop-Loss / Take-Profit Orders

You can set stop-loss and take-profit orders by clicking on the "Close" button and selecting the "Trigger" tab.

After creating a trigger order, it will appear in your position's row as well as under the "Orders" tab, you can edit the order and change the trigger price if needed.

If you close a position manually, the associated trigger orders will remain open, you would need to cancel them manually if you do not want the order to be active when opening future positions.

Note that orders are not guaranteed to execute, this can occur in a few situations including but not exclusive to:

• The mark price which is an aggregate of exchange prices did not reach the specified price

• The specified price was reached but not long enough for it to be executed

• The order's size exceeds the remaining position size

• No keeper picked up the order for execution

Additionally, trigger orders are market orders and are not guaranteed to execute at the trigger price.

Adaptive Funding

Funding rates gradually adjust over time based on the long and short ratio.

For example, if the total long open interest is larger than the short open interest then the funding rate that longs pay shorts will gradually increase until the difference between the long and short open interest is below a certain threshold or an upper limit is reached, at which time the funding rate will remain constant.

If in this scenario more shorts are opened or longs are closed such that there are now more shorts than longs then the funding rate that longs pay shorts will gradually decrease until the difference between the long and short open interest is below a certain threshold.

If there remains more shorts than longs then the funding rate will gradually adjust in the other direction such that shorts will pay longs a funding rate that gradually increases until the difference between the long and short open interest is below a certain threshold or an upper limit is reached.

Execution Fee

There are two transactions involved in opening / closing / editing a position:

• User sends the first transaction to request open / close / deposit collateral / withdraw collateral

• Keepers observe the blockchain for these requests then execute them

The cost of the second transaction is displayed in the confirmation box as the "Execution Fee". This network cost is paid to the blockchain network.

Price Impact Rebates

Under normal circumstances, the long and short open interest should be mostly equal and price impact should be minimal.

However, it is possible in times of volatility for the long and short open interest to be imbalanced leading to a high price impact.

Price impact rebates help to reduce the effect of this. Each market has a maximum price impact as a guideline; if a trade is closed with a price impact higher than this percentage then the additional impact would become claimable after approximately 10 days.

For example, if the maximum price impact for a market is 1% and a trade is closed with 3% negative price impact, then the collateral equivalent to 2% negative price impact would be claimable after a few days on the interface.

The purpose of having a delay of a few days is to guard against price manipulation attempts. In the case of a price manipulation attempt, rebates should be reviewed and only applied to accounts that were not involved in the price manipulation.

Note that this rebate only applies to closing / decreasing of positions; for opening / increasing of positions there is no maximum price impact. For market increase orders, the price impact would be shown on the interface so that users can decide if the impact is acceptable. For limit orders the acceptable price including any price impact must be met for the order to be executed.

Max Leverage

The max allowed leverage of a pool will decrease as the total open interest of the pool increases, this is to guard the pool against gaming of price impact using high leverage positions. This mainly affects markets with less liquidity but can affect high liquidity markets if the open interest is very large. The interface will show a warning if the max allowed leverage will be exceeded. Note that this only affects opening / increasing of positions, it will not affect positions that have already been opened. For closing / decreasing of positions, if the max allowed leverage would be exceeded when decreasing a position then the order can still be executed, but the collateral within the position would not be reduced.