📊 Basic Trading FAQ

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What do I need to start trading?

  1. Computer with Firefox, Chrome or other browser that supports the Metamask wallet

  2. A Metamask account that is not connected to a hardware wallet (hw wallet support is in development).

  3. USDC -- all trades are funded and settled in USDC. You can obtain USDC at any major exchange, such as Uniswap.

  4. [Optional] Insurance from Nexus Mutual or Cover Protocol.

  5. Courage -- trade at your own risk! Financial loss is possible, although you will never lose more than your initial investment.

Hardware wallets at not supported yet. Ledger support is coming soon and we will have a solution for Trezor and other wallets in Q1 2021.

Why do I need to deposit & withdraw?

These steps allow you to trade on Perpetual Protocol with zero gas fees, thanks to the xDai network, while also using your regular Ethereum wallet to trade, with no set-up needed.

Deposit Step
Withdraw Step
Deposit Step

The deposit step moves your USDC to the xDai network using the xDai Omni Bridge. The funds remain in your wallet and are visible if you add the xDai RPC as well as the xUSDC custom token. You can perform this deposit step manually using Omni Bridge, if desired.

Note that you must cover the gas costs while using Omni Bridge to deposit.

Approval Step 1: Approve the Omni Bridge smart contract to use your USDC Deposit: The Omni Bridge smart contract locks the USDC and mints xUSDC Approval Step 2: Approve your funds for trading on the Perpetual Protocol smart contract (same as when trading tokens on Uniswap, etc.)

Withdraw Step

The withdraw step moves your xUSDC back to Ethereum, where it will appear in your wallet as USDC. The process is again completed using the xDai Omni Bridge and can be performed manually by the user at any time.

Note that the Omni Bridge pays gas for withdrawals, but also charges a 0.05% exit fee.

Approval Step 1: Approve the Omni Bridge smart contract to use your xUSDC Approval Step 2: Approve the Omni Bridge smart contract to burn the xUSDC and release USDC back to your wallet

Why are there no gas fees while trading?

All trades are processed using the xDai Chain, an Ethereum side chain. xDai is a proof of authority chain with 5 second block times and incredibly low gas fees (on the order of 0.0005 DAI per tx), so currently these fees are paid for by Perpetual Protocol.

How to reduce/increase position size

This is not possible yet due to the nature of the AMM model. It is not possible to guarantee the final size of your position after the request is made. E.g. if you have a 1000 USD position and give an order to reduce it to 500 USD, other trades in the same block could cause your final position to be above or below your 500 USD target.

To change your position size, either open a new buy or sell order. The new position will be merged with the active (existing) position.

If you have insufficient collateral, you can remove margin from your active position(s) using Margin Mgt. (thereby increasing your leverage).

What is the funding time?

A keeper (bot) triggers funding at the beginning of each hour.

Currently the funding period is not shown on the interface; we are working on a way to add this information.

Deep dive The Perpetual Protocol smart contract will allow anyone to trigger funding after the top of the hour. Once funding has been triggered, it cannot be triggered again until the next hour. In addition, funding cannot be triggered until 30 minutes have elapsed since the previous trigger. E.g. if funding is not triggered at 3:00, and then triggered at 3:35, the next funding will not be allowed to trigger before 4:05.

How are funding payments displayed in Position History?

Funding payments are shown as positive numbers when you made a funding payment (debit), and negative numbers when you received a payment (credit).

See your position history including funding payments in Position History at the top of the trading interface:

How are funding payments credited/debited to your account?

Funding payments will increase or decrease the margin of the respective position each time the funding cycle ends.

What are the fees charged by Perpetual Protocol when trading?

0.1% Transaction Fees

50% of the transaction fees will be deposited into the Insurance Fund to cover unexpected losses resulting during trading on Perpetual Protocol. The remaining transaction fees are shared with stakers based on their contribution to the Staking Pool.

Stakers are also eligible for fee refunds and other benefits. Read more here.

Fees and fee allocation can be adjusted through governance to keep the protocol competitive in the market.

How could I propose a new underlying asset to be traded on Perpetual Protocol?

Currently assets are decided by the team -- please leave a message on our Discord to discuss further. However, we are working on a plan to transition these decisions to governance in the near future.