Perps

Long, short and leverage

Your position's size is your margin times your leverage. $100 at 10x is a $1,000 position: if the price rises 1%, a long gains about $10 and a short loses about $10. The smallest margin is $1. Each market has its own maximum leverage:

The owner of the perps contract sets each market's maximum, up to 100x. Lowering it raises the maintenance margin of positions already open.

Fees

• Opening: 0.05% of the size, taken from your margin. $100 at 10x pays $0.50 and leaves $99.50 of margin.
• Closing: 0.05% of the size at the close price.
• Spread: on markets that fill at once, the price you get is 0.02% worse than the oracle price, when you open and again when you close. Each market's spread is set by the owner, at most 1%.

70% of every fee goes to the perp vault, 30% to Pickle Chain's fee split.

Funding

While a market is open, the bigger side pays the smaller one, every second, in proportion to how lopsided the market is. The rate is 0.0125% an hour times the imbalance (longs minus shorts, over longs plus shorts), and never more than 0.0125% an hour. A perfectly balanced market pays nothing. Funding stops while the market is closed. Funding is settled when the position closes. The owner can change the rate and its cap, up to 1% an hour.

Liquidation

Your equity is your margin plus your profit or loss, minus funding owed, minus the closing fee. If it falls below 1/(2 x max leverage) of the position's current size, anyone can liquidate it: 2% on a 25x market like ETH, 5% on a 10x market.

A liquidation closes at the oracle price with no spread. A penalty of 1% of the size is taken from what is left (half to whoever liquidated, half to Pickle Chain), and whatever remains comes back to your SENDIT balance. If nothing remains, the vault absorbs the shortfall; you never owe more than your margin.

Take profit, stop loss, limit

Add a take profit and a stop loss when you open, or set them later on the position. A Close at order closes the position when the price reaches your level. SENDIT's keeper fills them at the first new price that crosses your level, and a position that is liquidatable is liquidated first.

At once, or by request

Each market shows how it fills:

• At once. Your trade fills in its own transaction at the current price, plus the spread.
• In two steps. Your order waits for the next price, about a second, then fills at it, with no spread. If that price is more than 1% worse for you, the order is cancelled and your margin comes back. You can cancel a waiting order after 30 seconds, or at once if the market closes, and an order that has not filled after 2 minutes can no longer fill.

Closed markets

Stocks close at night and on weekends; metals and currencies close at the weekend. While a market is closed:

• new positions are refused;
• you can still close, at the last price minus a closed-market spread of 0.10% (the owner can set it per market, up to 1%), plus the market's usual spread;
• take profit, stop loss and limit closes wait for the reopening;
• funding stops, and liquidations wait for the first price after the reopening;
• a position that is already below its maintenance margin cannot be closed until then.

Who pays you

The perp vault is the counterparty: it pays traders' profits and keeps their losses. A market side, or the market as a whole, can fill up when the vault cannot take more risk in that direction; SENDIT then asks for a smaller size.