FAQ

How do I estimate the time left before liquidation?

The estimated time left before liquidation is - given the daily funding fee for the current CVI index, how long will it take the positions you hold to reach the liquidation threshold. This is of course an estimation, as the CVI index might change during that time, which would affect the funding fee paid as well as the value of the position itself.

How is my P&L calculated?

For a trader, the profit is calculated based on the difference between the current CVI index value and ones at the positions opening times. This in addition to any fees that were collected or accrued during the above period. For a liquidity provider or an owner of LP Token, the profit depends on the collected funding fees and buying premium as well as your relative share in the liquidity pool. In addition the ongoing changes of the CVI Index impact the overall value.

How is the purchase fee calculated?

The purchase fee is a combination of two fees. One is a fixed percentage from the amount used in the open position, while the second is the buying premium which is added in case the platform utilization factor (the capacity of the platform by the liquidity providers to cover the opened positions) is high in relation to it.
In addition, buying premium is also affected by rapid changes in the CVI. In cases where the CVI value gathered by the oracle surpasses a predefined threshold percentage from the previously reported one, the system will be presented with the new value ahead of time which, in turn, will trigger an increase in premium. The component of the turbulence will diminish over time according to subsequent reports from the oracle unless large fluctuations continue.

What is the funding fee and how do I calculate it?

The funding fee is calculated according to the CVI Index value over time (per hour). The higher the CVI value, the lower the funding fee percentage. The funding fee rate is updated according to new values of the CVI Index. You can read more about the Funding fee in the CVI whitepaper.

Why can't I sell my position immediately, why is there a blocking period?

If traders buy a CVI position , they can’t sell this position in the next 6 hours. Between 6 hours and 48 hours , he will be able to sell his position while paying a higher sell fee (The fee will be lower the more hours have passed). After 48 hours have passed, traders will pay a low sell fee. Liquidity providers can’t withdraw their liquidity for 48 hours.
If a trader bought another position, the 6 hour lock countdown will be restarted for all his position amount. Same will happen if a liquidity provider deposits additional amounts into the liquidity pool, he will have a new 48 lock on all of his deposited liquidity. The rationale behind the lockup period is stability and security, and this is the reason lockup is quite common on derivatives platforms.