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Trading FAQ

General

How do the various mechanisms of Deri Protocol work?

Refer to our How it works section - Architecture

What is the difference between Main, Inno & Open Zone on Deri Protocol?

Deri Protocol offers 3 different trading zones:
1.The Main Zone zone features base tokens and trading symbols that remain long term as demand is quite high
2. The Inno Zone marks base tokens & trading symbols that will be evaluated and added by team in regard to their innovation or the brisk request by the Deri community. When the demand and volume proves to be high in longer terms, they will be moved to the Main FUT Zone.
3. The Open Zone (=Permissionless markets) is an environment, where any project can list its base tokens and trading symbol, similar to Uniswap where projects or individuals can create pools, just for derivatives. As the Open Zone is permissionless, Deri Protocol don't control the trading pools at all. Therefore, it is important that traders or liquidity miners familiarize themselves with the Open Zone scheme to avoid any possibility of harm, especially but not limited to - the loss of funds.

Why is the Deri website sometimes slow?

In most cases, a slow data connection is just temporary, and caused by the RPC node.
Deri Protocol is a group of smart contracts deployed on the blockchain, where the exchange of risk exposures takes place completely on-chain. The RPC is quite important from a user's perspective because it allows you to query data and submit transactions on the blockchain on which Deri Protocol operates.
There may be times when the RPC URL is not as responsive as it should be. At these times, you may notice data being slow to load or not loading on Deri Protocol's trading page.
To continue using Deri Protocol during these times, we recommend you change the RPC URL in the network settings of your wallet. The page should load faster after changing the PRC URL.
For a list of RPC URLs and their statuses: https://chainlist.org/.

What is the address of DeriLens?

Specific FAQs

Which derivative should I trade? Everlasting Options or Perpetual Futures?

The rationale between choosing between Futures & Options is: what kind of risk you are willing to take/hedge & what kind of costs you are willing to pay. The advantage of futures is that the funding fee is pretty small (fluctuating around 0). Let’s say you are long BTCUSD, you make profits when BTC goes up, whereas you bear a loss when it goes down. The risk profile is symmetric. However, let’s say you are long some out-of-money BTCUSD option with the strike at 50000. The risk profile is asymmetric: you make profits when BTC goes above 50000, whereas you have just a little loss when it goes down. But there is no free lunch. For such asymmetric benefit, you need to pay the option premium, which in the case of Everlasting Options: the funding fees that you need to pay (presumably much higher than that of Futures).

What do I have after placing an order?

When you successfully place an order, you have a PToken minted to your address on the blockchain. PToken (P for position) is a non-fungible token (NFT) containing your position information: direction&volume, cost, your margin, cumulative funding rate at the minting block.
The PToken is how your position exists on the blockchain. You can send it to another address just like you send any NFT or fungible token (e.g. ERC20 token). That is, PToken is a tokenized position. Or, from a financial perspective, it's a tokenized risk exposure.

What happens when I open 2 positions of the same symbol in opposite directions at the same time?

You cannot open a long and a short position of the same symbol simultaneously. If you enter a long option and then go short for the same volume of the same option, you end up with an empty position. It’s just like you closed your long position.

If I have positions in several symbols of one trading pool, would the total margin requirement be calculated for all of my positions?

Yes, should you have positions in several symbols of one trading pool, a total margin requirement would be calculated for all of your positions. Please note accordingly, forced liquidations are executed on the account level too. For more information check out our Margin Requirement article

What happens if I do not meet my maintenance margin requirements? Will my position get liquidated?

To maintain those positions open, traders have to keep a certain percentage of the position's value on Deri Protocol, which is called "Maintenance Margin". The minimum Maintenance Margin requirements can be found on the Contract Info panel on the trading interface. If the Maintenance Margin requirement is not met, the position will be liquidated and your margin balance will be permanently lost. You can avoid this by adding additional margin.
Please note that we calculate the margin requirement on the account level. That is, should you have positions in several symbols of one trading pool, a total margin requirement would be calculated for all of your positions. Accordingly, forced liquidations are executed on the account level too. That is, upon forced liquidation, all of your positions in this pool will be closed and you will lose all of your margin balance in this pool.

Would I lose some or all of my margin balance of a certain trading pool in the event of a forced liquidation of my account?

In that case, you would lose all of your margin balance related to this specific trading pool, i.e. your margin balance would become 0.

Are unrealized profits and losses & Funding Fees deducted and added to the dynamic balance in real-time?

Yes, they are counted in the real-time dynamic balance. Funding fees are also counted in but settled every time the user changes the leverage or add/remove Margin

Why is the liquidation price not displayed sometimes?

There are two cases when a “liquidation price” is not displayed:
  1. 1.
    -- / -- : This symbol means the trader will not be liquidated for price move in this direction
  2. 2.
    ?: this symbol means our simple algorithm cannot determine the liquidation price in this (selected) direction. Please manage your risk carefully.

Is trading on Deri Protocol risk-free?

Trading Margins & Contracts on Deri Protocol includes but is not limited to - a high level of risk, and may not be suitable for all kinds of investors. The enormous degree of leverage can work in favor of you as well as against you. Before making the decision to invest using Deri Protocol, you should carefully consider your level of experience, investment objectives and risk appetite. There is a possibility that you may lose part of your investment or all of your initial investment. You should be aware of all the risks associated with trading contracts and margin. Deri Protocol will not be responsible for any losses, damages or claims arising from events falling within the scope of the events mentioned above. We urgently advise you not to invest money that you cannot afford to lose and we also recommend you to seek advice from an independent financial adviser, If you have any questions or doubts!

How to become a qualified liquidator on Deri Protocol?

Step 1: Approve Privileger smart contract in DERI token smart contract (https://bscscan.com/address/0xe60eaf5A997DFAe83739e035b005A33AfdCc6df5#writeContract)
Approve Privileger smart contract
Step 2. You can find the number of DERI tokens and qualified liquidators on BSCscan. The average staking amount = Number of DERI tokens/Number of Liquidators.
Check the average staking amount
Step 3: Deposit your DERI tokens into the Privileger smart contract. The staking amount has to be no less than the average level.
Deposit DERI tokens

How to Select Trading Symbols

  1. 1.
    Go to the Futures/Options/Powers trading interface and click on the trading symbol to open the search box.
2. There are 3 types of derivatives: Futures, Options and Powers. Select your preferred product. For example, if you want to trade Everlasting Options, click "Options". If you want to trade Powers, click "Powers".
3. Select the trading symbol you want to trade.
4. Alternatively, you can search for a specific trading symbol using the search bar. For instance, if you search for “BTC”, all BTC derivatives (Futures, Options and Powers) will be displayed in the dropdown menu.