Trade Size

To optimize capital efficiency and safeguard pools from depletion while still enabling substantial position sizes and potential profits, certain limits are enforced on the open interest and maximum Profit and Loss (PnL).

The specific limits are determined based on the current Total Value Locked (TVL) of the pools. These limits are adjustable as needed, in order to maintain an optimal level of capital efficiency.

By applying these limits and continuously adjusting them, we aim to strike a balance between ensuring pool protection and allowing users to participate in trades with sufficient position sizes and potential earnings. This approach enhances the overall trading experience and financial security on the platform.

Make it Easy:

Consider the following conditions:

• $10M TVL on the platform

• 10% open interest limit, resulting in $1M limit for both LONG and SHORT

• Currently $100k LONG open interest and $200k SHORT open interest

This means a user could open a LONG position of up to $900k and a SHORT position of up to $800k.