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
Exolane uses Pyth Network for price feeds. If the price is stale or unavailable, the protocol rejects the price and prevents liquidations until a fresh update is available.
Multi-feed aggregated oracle with staleness checks. Price updates are verified before execution.
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.
Execution Model
Zero Slippage
Every trade executes at the precise Pyth Network oracle price. No AMM curves, no price impact, no slippage — trade any size and receive the exact quoted price.
Typical AMM DEX
AMM-based protocols experience slippage that increases with trade size. Price impact compounds with liquidity depth, often resulting in unexpected execution prices.
Exolane Oracle Execution
Oracle-based execution eliminates slippage entirely. Every trade settles at the Pyth Network price regardless of position size or market conditions.
No Front-Running
Oracle-based pricing eliminates MEV extraction and sandwich attacks. Your trade cannot be front-run by bots or validators.
Execution price determined by oracle at settlement time, not by order book.
Predictable Fills
What you see is what you get. The quoted oracle price before confirmation is the exact price you receive — no surprises, no requotes.
All execution parameters visible on-chain before trade submission.
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.
What is the maximum funding rate on Exolane?
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.
Do you charge liquidation fees?
Exolane charges 0% protocol liquidation fee — we don't add an extra penalty when a position is liquidated. A small settlement fee may still apply to execute the liquidation transaction. This is a network gas pass-through (paid to the network/validators), and it varies with network conditions (typically low on Arbitrum).
What happens if the insurance fund is depleted?
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.
Which oracles provide price feeds?
Exolane uses Pyth Network for all market price feeds. Prices must be updated within a 40-second staleness window — stale or unavailable prices are rejected, and liquidations are blocked until a fresh update is available.
What are the supported collateral types?
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.
How is the protocol audited?
Smart contracts have undergone 8 security audits by Sherlock and Zellic since August 2023, covering the core protocol and all subsequent updates. All audit reports are publicly available in the documentation. A bug bounty program for critical vulnerabilities is planned. Formal verification of core margin and liquidation logic is in progress.
What networks are supported?
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.
Is there a token or governance system?
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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