Perps

Perpetual Trading on Memes and Majors

Trading Perpetuals with Multi-Collateral Support

OX.FUN's platform allows traders to open perpetual positions on meme coins using different types of collateral. The collateral types accepted on the platform include:

$OX (Platform Token)
Other Memecoins (e.g., PEPE, MOG, SPX, GIGA etc.)
Stablecoins (e.g., USDC, USDT)

Each collateral type has a unique LTV ratio

Loan-to-Value (LTV) Ratios

The LTV ratio represents the maximum allowable position size relative to the collateral value. Different collateral types have different risk profiles and different LTVs to account for potential price volatility and liquidity concerns. The LTV ratios for OX.FUN can be seen on the homepage.

Opening and Managing Positions

When a trader wishes to open a position on OX.FUN, they can choose the desired meme coin perpetual contract and specify the collateral they want to use. Users may see their total collateral value under margin details and the full breakdown under "Wallet & Order" > Balance. The steps involved in opening a position are as follows:

Collateral Deposit: The user deposits the selected collateral type (e.g., $OX, meme coins, or stable coins) into their trading account.
Position Size Determination: Based on the collateral's LTV ratio, the maximum allowable position size is calculated.
Opening the Position: The user specifies the desired position size (within the allowable limit), and the system uses $OX as the base currency for settling the perpetual contract.
Risk Management: The user can manage the position by adjusting the collateral amount, setting stop-loss and take-profit orders, or closing the position at any time. Liquidation risk is managed based on the collateral’s LTV ratio.

Liquidation Mechanics

To protect the platform from insolvency and minimise user losses, a liquidation process is implemented if the value of the collateral falls below the maintenance margin requirement:

Triggering Liquidation: When the collateral’s value, adjusted by its LTV ratio, is insufficient to cover the position’s margin requirements, the position will be partially liquidated to maintain solvency.
Liquidation Priority: Priority is sorted by the highest LTV, and if they are the same LTV, then the larger position is prioritised.

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Last updated 1 month ago

Trading Perpetuals with Multi-Collateral Support

OX.FUN's platform allows traders to open perpetual positions on meme coins using different types of collateral. The collateral types accepted on the platform include:

$OX (Platform Token)

Other Memecoins (e.g., PEPE, MOG, SPX, GIGA etc.)

Stablecoins (e.g., USDC, USDT)

Each collateral type has a unique LTV ratio

Opening and Managing Positions

Collateral Deposit: The user deposits the selected collateral type (e.g., $OX, meme coins, or stable coins) into their trading account.

Position Size Determination: Based on the collateral's LTV ratio, the maximum allowable position size is calculated.

Opening the Position: The user specifies the desired position size (within the allowable limit), and the system uses $OX as the base currency for settling the perpetual contract.

Risk Management: The user can manage the position by adjusting the collateral amount, setting stop-loss and take-profit orders, or closing the position at any time. Liquidation risk is managed based on the collateral’s LTV ratio.

Liquidation Mechanics

To protect the platform from insolvency and minimise user losses, a liquidation process is implemented if the value of the collateral falls below the maintenance margin requirement:

Triggering Liquidation: When the collateral’s value, adjusted by its LTV ratio, is insufficient to cover the position’s margin requirements, the position will be partially liquidated to maintain solvency.

Liquidation Priority: Priority is sorted by the highest LTV, and if they are the same LTV, then the larger position is prioritised.