š”ļøPerpetual Vault
Last updated
Last updated
The vault serves as the counterparty to all trades made on the platform:
When traders win (positive PnL), their winnings are received from the vault.
When traders lose (negative PnL), their losses are sent to the vault.
The Insurance Fund acts as a protective layer for the vault in case of positive PnL, aiming to minimize the downward price trend of apUSDC.
This fund is managed by an administrator, allowing them to withdraw from and deposit into the vault at any time. Withdrawals from the Insurance Fund can be flexibly used for beneficial strategies, such as buying back ASH, sending to the treasury, and allocating for product R&D.
According to the formula:
If PnL > 0: The vault records a loss, and 100% of this loss is allocated to the reserve, with a priority to use funds from the insurance fund first.
If PnL < 0: The vault records a profit, and 100% minus a certain percentage (x%) is allocated to the reserve, where x% is distributed to the insurance fund. The administrator can deposit or withdraw from the insurance fund at any time.
Fees: Trading fees that are allocated to the Vault (if any) will be reflected in the apUSDC price as per the outlined formula.
Order Execution: Every order that is opened or closed, involving money being received or transferred from the vault, directly reflects on the apUSDC price through PnL and fees (if any)
To initiate a withdrawal, a request must be made, followed by a 7-day cooldown period and a 2-day redemption window after the cooldown ends. This timeframe can be subject to changes.
The apUSDC price will fluctuate according to market conditions throughout the cooldown period, and the withdrawal exchange rate is fixed at the moment of redemption (during the 2-day window).
Users can still trade apUSDC on DEXs to avoid the cooldown period. There will be an apUSDC/USDC pool created on AshSwap for this purpose.
