Futures
This page is a placeholder for Phase 2 development. The futures product uses oracleless design, leveraging depth-aware spot pricing informed by mark-to-truth auctions for settlement and liquidation.
Futures reference robust spot pricing informed by mark-to-truth auctions. With trustworthy spot, batch auctions for price discovery can be reduced or simplified.
General discussion context: https://chatgpt.com/share/690f4614-d288-800a-b6d0-7cc51c027701
Futures fees and insurance fund
Trading fees: Standard maker/taker fee structure for perpetual futures positions.
Typical structure:
- Maker fee: 0.02% (maker rebate in high-liquidity conditions)
- Taker fee: 0.05–0.10%
- Funding rate margin: Small cut of funding payments between longs and shorts
Fee distribution:
- 50% → Protocol treasury: Covers liquidation engine, position monitoring, settlement infrastructure
- 30% → Futures insurance fund: Dedicated reserve for covering bankrupt accounts and liquidation shortfalls
- 20% → Collection cost pot: Helps offset expenses for the underlying RWA collection
Futures insurance fund: Unlike protocol-wide risk socialization, the futures insurance fund is product-specific. It's funded exclusively by futures trading fees and funding rate margins. If liquidations result in bad debt, the insurance fund covers losses first. Only if the fund is depleted would losses be socialized—and only among futures participants, never affecting spot traders or LP positions.
Why separate insurance? Futures carry leverage and liquidation risk that doesn't exist in spot markets. Isolating this risk through a dedicated insurance fund ensures that futures participants bear the costs and risks of their leverage without creating systemic risk for the broader protocol.
For comprehensive information about futures fees, insurance fund mechanics, and how they integrate with the protocol's overall economic model, see Fees & Yield Routing.