Risk Management

Find out how our perp pools protect LPs by managing risk.

Risk management for liquidity providers is done by encouraging the pool's exposure to be as close to zero as possible while continuing to earn fees from traders. This is achieved via 2 main methods.

High Maker Rebates

By default, liquidity providers in perp pools earn 8 bps (basis points) on maker rebates, and can be higher for certain incentivized pools. This is regardless of the deposit size.

This is one of the highest maker rebates in crypto as the standard is typically 1-2bps, and this is reserved for VIP market making tiers who do millions in volume.

Dynamic Borrow Rate

One way the pool protects LPs is by dynamically adjusting the borrow rate, which is part of the funding rate. This borrow rate is included in the funding rate.

Visit the funding rate page to find out more about how dynamic borrow rate protects LPs.