Trade Markets.Know Your Costs.
Trade crypto, stocks, commodities and forex perpetuals with capped funding rates — so you're never surprised by fees.
Protocol Specifications
Risk Parameters
Exolane implements fixed, transparent risk parameters designed to prevent the funding rate spikes and opaque liquidation mechanics common in perpetual trading protocols.
Funding Rate Cap
Funding rates are algorithmically capped at 15% APR regardless of market conditions. This prevents the extreme funding spikes observed during high-volatility events on uncapped platforms.
Enforced at the smart contract level with no administrative override capability.
Liquidation Mechanics
Liquidation prices are calculated deterministically from oracle prices with no hidden spread or slippage. All liquidation parameters are visible on-chain before position entry.
Liquidation threshold: maintenance margin + liquidation fee. No partial liquidations.
Oracle Architecture
Price feeds aggregate from Chainlink, Pyth, and proprietary sources with outlier detection. No single oracle failure can trigger liquidations.
Median of 3+ sources with staleness checks. 500ms maximum price age.
Custody Model
Funds remain in user wallets until margin is posted. Positions are settled directly to user addresses. No pooled custody or counterparty exposure to exchange operations.
Smart contract escrow with user-only withdrawal rights.
Protocol Comparison
Risk Parameter Analysis
Comparison of Exolane risk parameters against typical perpetual DEX implementations. Data reflects standard market conditions.
Note: Comparison reflects general characteristics of perpetual DEX protocols. Specific implementations vary. "Typical Perp DEX" represents common design patterns, not any specific protocol. Users should conduct independent due diligence.
Trading Process
Position Lifecycle
End-to-end trading flow from wallet connection to position close. All operations execute on-chain with deterministic pricing.
Wallet Connection
Connect any EVM-compatible wallet (MetaMask, WalletConnect, Coinbase Wallet). No account creation, email verification, or KYC requirements.
Margin Deposit
Deposit USDC as margin collateral. Funds are held in isolated smart contract escrow with user-only withdrawal rights.
Position Entry
Select market, direction (long/short), size, and leverage. Review liquidation price and margin requirements before confirmation.
Position Management
Monitor position P&L, adjust stop-loss/take-profit, add margin, or close partially. All modifications execute at oracle price.
Risk notice: Perpetual trading involves significant risk of loss. Leverage amplifies both gains and losses. Positions may be liquidated if margin falls below maintenance requirements. Review the risk documentation before trading.
Technical FAQ
Frequently Asked Questions
Technical and operational details for prospective users.
Funding rates are capped at 15% APR (approximately ±0.00171% per hour). This cap is enforced at the smart contract level and cannot be overridden by any party, including the protocol team. The cap applies regardless of market conditions, open interest imbalance, or volatility.
Liquidation prices are calculated deterministically: Entry Price ± (Initial Margin - Maintenance Margin - Liquidation Fee) / Position Size. All parameters are visible before trade execution. Oracle prices are used for liquidation triggers, with no hidden spread or additional slippage.
If socialized losses exceed the insurance fund, Auto-Deleveraging (ADL) is triggered. Profitable positions are closed in order of profit ranking to cover the deficit. ADL is a last-resort mechanism; the insurance fund is sized to cover losses under normal and stressed market conditions.
Exolane sources prices from Chainlink and Pyth. To protect traders, prices must be updated within a defined time window, and markets are blocked from using stale prices.
USDC is the primary margin collateral. Margin is held in isolated smart contract escrow with user-only withdrawal rights. Cross-collateralization with other assets is on the development roadmap but not currently supported.
Smart contracts have been audited by Trail of Bits and OpenZeppelin. Audit reports are publicly available in the documentation. An active $1M bug bounty program covers critical vulnerabilities. Formal verification of core margin and liquidation logic is in progress.
Exolane is currently live on Arbitrum, chosen for its low fees and fast transaction times. Support for additional networks may be considered in the future.
There is no governance token. Protocol parameters are fixed at the contract level. This design choice prioritizes predictability over adaptability. Parameter changes, if any, would require contract migration with advance notice.
For additional technical details, refer to the protocol documentation.
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bounded risk parameters
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