# Flex Perpetuals Wind-Down ## General **Why is Flex Perpetuals shutting down?** The on-chain perpetuals market has consolidated significantly since our launch in February 2025. Heavily capitalised competing protocols have absorbed market share and liquidity in ways that make it increasingly difficult for a community-funded protocol to maintain a healthy FLP pool. With FLP at its current level, individual profitable traders create outsized impact on the pool a structural problem that compounds over time. Continuing to operate under these conditions increases risk to our community without a credible path to resolution. We made the call to wind down cleanly rather than manage a slow decline. **When did this decision take effect?** Trading was halted at 16:00 UTC on March 5, 2026. **Where can I see all wind-down actions and statuses?** The Wind Down tab at [app.flex.trade](https://app.flex.trade/base/wd) shows the current status of every action in real time. This page will be updated at each milestone. *** ## Open Positions **I have an open position. What do I do?** Close it before 16:00 UTC on March 7, 2026. You have a 48-hour voluntary window from the announcement. **What happens if I don't close my position in time?** Any positions still open at 16:00 UTC on March 7 are force-closed at oracle price. You do not need to take any action for this to happen it is automatic. **Can I open new positions?** No. New position openings were disabled at 16:00 UTC on March 5. *** ## FLP **What happens to my FLP?** FLP is freely redeemable now and always has been. Redeem your proportional share of the underlying basket (cbBTC, ETH, USDC) at any time. There is no deadline. **I'm in a Boost Lock (3-month or 6-month). Can I still withdraw?** Yes. All Boost Locks are unlocked immediately as of the announcement. You can withdraw freely. **Is there any risk to leaving FLP unredeemed?** Trading has been halted, so there is no further counterparty risk from open positions after March 7. Your FLP simply holds the underlying basket. There is no penalty or deadline for redemption. *** ## esFDX **What happens to my esFDX?** esFDX vesting is now instant. You can vest to FDX and claim your full amount at any time. **Will I receive further esFDX rewards?** No. esFDX distribution is halted from March 5 at 16.00 UTC. **I have esFDX in a Boost Lock. Can I access it?** Yes. All Boost Locks are unlocked. Vest your esFDX to FDX immediately if you wish. *** #### FDX **Will the team sell FDX?** No. All team tokens are being burned on-chain. No team member will sell FDX on the market. **What happens to protocol-owned liquidity (POL)?** POL will be withdrawn from the Aerodrome FDX/ETH pool at 16:00 UTC on March 12. This was formally announced on March 5 a 7-day notice period. POL is being redeployed into Flex Labs operations including LiquidBots development, marketing, and runway. **What is the Flex Legacy Allocation (FLA)?** The FLA is a gesture of recognition for FDX holders who remain at the time of the March 12 snapshot. It is not compensation we want to be clear about that. It converts the nominal USD value of your FDX holdings at snapshot into LBOT tokens at TGE price, on a 1:1 basis. FLA is sourced from our Ecosystem Growth and Trader Incentives bucket and has zero impact on investor allocations. **When is the FDX snapshot taken?** At the exact block when POL is withdrawn 16:00 UTC on March 12, 2026. **Do I need to hold FDX to receive the FLA?** You must hold FDX at the snapshot block on March 12. If you sell before then, you will not receive FLA. This is your decision there is no obligation to hold. **What are the vesting terms for the FLA?** The vesting schedule will broadly align to our Liquidbots seed round terms. Full vesting details will be published ahead of LBOT TGE. *** ## Seed Round Investors (LFDX) **I'm a seed round investor with unvested LFDX. What are my options?** You have two paths. You must choose within 7 days of the announcement (by 16:00 UTC on March 12). If you do not respond, you are automatically placed into Option 2. **Option 1 Accelerated Exit** Your remaining unvested FDX is released as liquid tokens immediately, with a 35% haircut applied to the unvested amount. This gives you liquidity now if you need it. **Option 2 Flex Legacy Conversion** Your remaining unvested FDX is converted to a Flex Legacy Allocation at the same 1:1 nominal USD value rate as the general FDX snapshot. Carried into LBOT with the same vesting schedule as the general FLA. Option 2 participants also receive exclusive access to the LiquidBots Strategic Investment Round on the same terms as strategic investors. **How do I choose Option 1?** Use the "Claim FDX / Accelerate Exit" button on the Wind Down page at app.flex.trade. **What happens if I don't choose?** You are automatically placed into Option 2 after the 7-day window closes. *** ## LiquidBots **What is LiquidBots?** LiquidBots is Flex Labs' next product a modular automation platform for on-chain trading. Grid bots, DCA, arbitrage engines, and copy vaults, built to execute across Hyperliquid and other leading perps venues. It is an intelligence layer that works with dominant exchanges, not against them. **How does my Flex Legacy Allocation connect to LiquidBots?** At LBOT TGE, your FLA converts to LBOT tokens at a 1:1 nominal USD value ratio. Your history with Flex Perpetuals gives you a direct path into the LiquidBots ecosystem. **Where can I learn more about LiquidBots?** docs.liquidbots.xyz # Welcome to Flex Perpetuals Trading Beyond Limits ## Introduction: Flex Perpetuals is a next-gen decentralized perpetual protocol with cross-margin and multi-asset collateral support on BASE chain. Flex Perpetuals offers the following unique features to users: {% tabs %} {% tab title="Leverage Trading" %} Users can trade up to 1,000x leveraged long or short positions on many asset classes including Cryptocurrency, Forex, and Commodities. Flex Perpetuals also accepts various crypto assets as collateral with cross-margin collateral support, allowing for flexible position and risk management strategies. Learn more about our Leveraged Trading features [here.](/our-products/leveraged-trading-cross-margin-multi-collateral-management) Find the list of all the supported trading markets - [here.](/markets) Find the list of all the supported collateral assets - [here.](https://docs.flex.trade/our-products/leveraged-trading-cross-margin-multi-collateral-management#multi-asset-collateral-support)
{% endtab %} {% tab title="Market Making LP " %} Deposit cbBTC, ETH or USDC in exchange for FLP to provide market making liquidity for traders at Flex Perpetuals. By participating in the Market Making Liquidity Pool, users earn the following: 1. 45% of Trading & Borrowing Fee revenue 2. Liquidation revenue 3. Profits from Counter Trading 4. 10% of $esFDX emission incentive rewards
{% endtab %} {% tab title="Revenue Share LP" %} Users can pair our native $FDX token with $ETH on Aerodrome.Finance and stake on Flex Perpetuals to receive stFDXLP. In return, stFDXLP stakers will be entitled to voting rights and earn the following revenue share and incentive rewards:
* 30% of Trading & Borrowing Fee revenue * Liquidations revenue * 35% of $esFDX emission incentive rewards {% endtab %} {% tab title="Reward Incentive Program " %} We have many programs to reward Flex Perpetuals platform users: **Flex Trade Credits:** For every $1 of trading volume, users will be awarded at least 1 FTC token (the rate depends on which asset users trade on). The FTC token can be staked to earn esFDX emission rewards. **Rewards for Market Making & Revenue Share Liquidity Providers:** In addition to the protocol fees that liquidity providers will receive, we will also provide esFDX rewards as additional incentives to these users. {% endtab %} {% endtabs %} ## Flex Perpetuals Competitive Advantages As a pool-based decentralized perpetual protocol that offers multi-asset collateral and cross-margin support, our aim is to create a product that addresses the biggest pain points while also offering the best user experience. **Flex Perpetuals aims to be the cheapest, fastest, most secure and reliable perpetuals trading platform on BASE.** :rocket: While there are currently many decentralized perpetual protocols in the market, Flex Perpetuals brings multiple benefits to the ecosystem both in term of economics and product features. Below are some of the key highlights of our competitive advantages*.*
### Economics: {% tabs %} {% tab title="High APR% for LP 💸" %} *Flex Perpetuals* offers extremely competitive APR% for both it's Market Making LP (FLP) and Revenue Share LP (stFDXLP). This is achieved by directing the majority of protocol revenue and incentive emissions towards these pools. {% endtab %} {% tab title="📉 Low Fees" %} Flex Perpetuals offers one of the lowest trading fees among the pool-based decentralized perp protocols. For example, our FX's trading fee is only 0.01% and the BTC and ETH trading fee is only 0.02%. This is possible because of our unique economic structure and additional protocol revenue earned through our use of Aerodrome.Finance. {% endtab %} {% endtabs %}
### Product Features: * **Cross-margin Collateral:** Flex Perpetuals offers a cross-margin collateral management model, which allows for the sharing of margin balances across multiple positions, increasing the capital efficiency and flexibility for users. Traders will be able manage their portfolio holistically in a much more efficient and convenient manner than trading using an isolated-position model. * **Multi-asset Collateral:** Flex Perpetuals supports multiple assets as collateral. Traders at Flex Perpetuals are not restricted to a single collateral asset or a specific collateral type based on their trade direction. This will allow them to execute certain strategies much more effectively i.e. carry-trade strategy. * **High Leverage:** Flex Perpetuals supports a maximum leverage of up to 1,000x of collateral value depending on the trading asset class. This feature allows users with high conviction in their market views to capitalize the potential upside from being right, maximizing their financial gains. * **Gasless Trading & Order Management:** Execute trades and manage your positions gas free using our intent based architecture. * **1-Click Trading:** Flex Perpetuals offers a one-click trading feature through our use of account abstraction. Once the account abstraction has been set up (a one-time process), users do not need to sign the transactions via their wallets every time they want to execute a trade. Instead, they simply need to input their PIN to confirm and complete their trade - a much faster and simplified experience, on- par with using a centralized exchange! * 📈 **On-chart Trading:** Ability to drag and drop to adjust take-profit and stop-loss orders directly on the chart. * **Advanced Order Types:** Flex Perpetuals supports advanced order types such as limit order, take profit, and stop loss. * **Subaccount Support:** Flex Perpetuals supports multiple subaccounts under the same wallet address. Using subaccount allows users to employ different trading strategies, segregate risks, and provide an easy way for users to track their performance under the same wallet address, improving the overall user- experience. * **Robust price oracle:** Flex Perpetuals utilizes a combination of Chainlink Data Streams & Pyth Oracles for price feeds for a fair, reliable and transparent price source. The robust setup provides redundancy and protects traders and liquidity providers from scam wicks or short-term rapid price movements in a volatile market condition. * **🛡LP protection:** Flex Perpetuals has multiple mechanisms in place to ensure our liquidity providers are safe from various risks. * **Friendly UI/UX:** Flex Perpetuals has put a lot of emphasis in delivering the best experience to our users. Whether you are a DeFi native or a new comer to the space, we make sure that navigating through our application is as intuitive as it can get. * **Decentralization:** Flex Perpetuals is a decentralized perpetual protocol. This means that we DO NOT pose any KYC requirements or have the ability to cease, blacklist, or freeze your account. You custody your own fund with full control of it at all times. ## Why leveraging HMX's technology? * **Best tech in the Industry:** HMX currently has the best technology for an LP-based perpetual protocol in the industry, with their flexibility to support cross-margin collateral, multi-asset collateral, and many of their robust & comprehensive LP-protection mechanisms. * **Proven track record:** After launching on Arbitrum, HMX accumulated over $60bn in total trading volume and counting. Their products have been battle-tested and their contracts have been audited by top audit firms/individuals, such as [Foobar](https://twitter.com/0xfoobar), [WatchPug](https://twitter.com/WatchPug_), and [Cantina](https://twitter.com/cantinaxyz), instilling confidence in their codes. * **Marketing & Community Support:** With a large community of traders and LPs, HMX will be able to support FLEX in terms of both marketing and community building. At the same time, Users on HMX will benefit from FLEX launching ### Why we built Flex Perpetuals? The team behind Flex Perpetuals are experienced traders and DeFi users. We recognize the major pain points faced by our fellow traders and liquidity providers with the current available platforms in the market, especially with the failure of many centralized trading platform in 2022. We want to build a platform with great UX/UI, allowing anyone to trade with low- fees, and let participants earn and prosper together with the platform. We are a big supporter of the DeFi ethos. Race, nationality, location, or any other factors should not pose any barriers to participating in financial opportunities in DeFi and at FLEX. {% hint style="info" %} *The charts are provided by TradingView, a platform for traders and investors with advanced research tools and data that helps you track coins like* [*BTC USD*](https://www.tradingview.com/symbols/BTCUSD/) *and* [*ETH*](https://www.tradingview.com/symbols/ETHUSD/) [*USD on charts*](https://www.tradingview.com/symbols/ETHUSD/) *to always stay on top of where the crypto markets are moving.* {% endhint %} Flex Perpetuals *is a decentralized perpetual protocol, native to the internet and blockchain. By using Flex Perpetuals, you acknowledge that Flex Perpetuals* *is not designed for use in every legal jurisdiction and by using it, you represent that you have investigated your personal legal situation and consulted with a legal representative in your jurisdiction, if necessary.* # Our Products FLEX offers two main core products for our users:
Leveraged Trading/files/bkTogQz8L7w2VwrrEiir
Market Making LP (FLP Vault)/pages/w730scm9W01aghMNqHw2/files/mF52Jq2OODZpZnDEMm7q
Revenue Share LP (stFDXLP)/files/c9INa3q9FTncxasqdz7B
# Leveraged Trading (Cross-Margin Multi-Collateral Management) Below are the topics that we will be covering in this section: * [Flex Perpetual's Collateral Management Model](#flex-perpetuals-collateral-management-model) * [Asset Classes Listing](#asset-classes-listing) * [Fees](#fees) * [Margin Requirements](#margin-fractions-imf-and-mmf) * [Adaptive Pricing Mechanism](#adaptive-pricing-mechanism) ### Flex Perpetual's **Collateral Management Model** Collateral management is one of the key differentiating features of Flex Perpetuals. Specifically, Flex Perpetuals is a pool-based decentralized perpetual protocol that offers cross-margin collateral management while also allowing users to use multiple types of assets as collateral: ### Cross-margin Collateral Flex Perpetuals offers cross-margin collateral management, which allows for the sharing of margin balances across multiple positions. With this feature, traders will be able to manage their portfolio holistically in a much more efficient and convenient manner. Capital efficiency will be enhanced, improving the flexibility through the reduction of margin requirements. The cross-margin collateral support allows Flex Perpetuals to offer the experience of using a centralized protocol without sacrificing on the security benefits of decentralization. **If users still wish to use an isolated margin (e.g., for risk management), they can still do so by utilizing the sub-account feature.** ### Multi-asset Collateral Support Flex Perpetuals accepts multiple assets as traders’ collateral. Allowing users to utilize multiple assets as collateral provides two key benefits to the users: 1. Users do not have to convert their holdings into specific assets to start trading 2. Users can effectively execute many strategies such as carry trade strategy or max long strategy (e.g., use ETH as collateral to long ETH) As part of the risk management procedure, Flex Perpetuals will assign the LTV (loan-to-value) to each collateral asset, which will determine the borrowing power. The borrowing power will then function as the variable that determines the liquidation threshold and the health of the account against all open positions under that account. Below is table summarizing the current supported collateral assets | Asset | Type | | ----- | ------------ | | USDC | Stable Asset | | USDbC | Stable Asset | | WETH | Volatile | | cbBTC | Volatile | ### Asset Classes Listing Flex Perpetuals currently offers the trading of three asset classes, including cryptocurrencies, FX, and commodities. Below is the list of assets supported by Flex Perpetuals and their maximum leverage.
Asset ClassMaximum Leverage
CryptocurrencyUp to 50x
ForexUp to 500x
CommodityUp to 25x
*We will review the leverage available as the platform matures* Full list of available assets can be found [here.](/markets) ### Fees Flex Perpetuals offers one of the lowest trading fees among the pool-based decentralized perp protocols. For example, our FX's trading fee is only 0.01% and the BTC and ETH trading fee is only 0.02%. This feat is possible because of our unique economic structure and additional protocol revenue earned through our use of Aerodrome.Finance. #### **Trading Fee (Position Opening & Closing):** The trading fee is charged as a percentage of the trader’s position size when a trader opens & closes their leveraged positions. The trading fees charged at Flex Perpetuals will vary based on different asset classes.\ \ A full list of assets and associated fees can be found [here.](/protocol-and-safety-parameters#trading-fees) #### **Adaptive Trading Fee:** The adaptive trading fee (ATF) will take our security to the next level and improve user experience at the same time as it enables us to: * List more crypto markets including ones with lower market cap * Increase Max. Trade Size We will implement the adaptive trading fees on ALL crypto markets **except** BTC and ETH, where users can still enjoy the same flat low 0.02% trading fees. ATF is calculated based on various variables including asset’s volatility and trading size relative to asset’s liquidity depth on CEX. For the formula and the example calculation of the Adaptive Trading Fee, please visit[ here.](/protocol-and-safety-parameters#adaptive-trading-fees) It is important to note that the objective for ATF is to simulate the effect of price impact when executing a large order, in order to prevent potential bad actors from profiting through price manipulation. The example below compares the total fee when trading on Flex Perpetuals vs. the fee + price impact that would happen on the same trade on CEX (i.e., Binance) when opening a MEMEUSD long position with a size of 100,000 USD. **Given:** * 1% Ask order book depth = 267,000 USD (i.e., market buy 267k USD would move the price up 1% on Binance) * epochDelta = 0; (only trade in the 5-min window on this asset on Flex Perpetuals) * Volatility of MEME is 0.003 * k1 = 1.25, k2 = 0.005 * MEME’s fixed trading fee = 0.05%
Plugging all the values into the formula, we see that the adaptive fee for Bob is 0.05% + 0.04% = 0.09% On the other hand, if Bob were to open MEMEUSDT long position with the same size on Binance. Bob would have to pay the maker fee of 0.05% and the price impact of 0.225% to fill the whole order. Thus, Bob will have to pay a total of 0.05% + 0.225% = 0.275%. For the sample data and the example calculation, please visit [here.](https://docs.google.com/spreadsheets/d/11XXpyEP-4yNPP7At7pEW6iZaLKjQCXJzLfyVssXwDaY/edit?usp=sharing) #### **Borrowing Fee:** The Borrowing Fee is charged on the size of the position of the trader and functions as a way for Flex Perpetuals to compensate the market makers (FLP depositors) for their cost of liquidity. The borrowing rate is determined by the asset utilization rate of the FLP vault. #### Velocity-based Funding Fee: The Funding Fee is charged on the traders’ position, similar to the borrowing rate. The Funding Fee helps bring a balance between long and short OI on Flex Perpetuals*,* thus ensuring our LPs are not too exposed to one side of the market. Flex Perpetuals has a velocity-based funding rate model, where the funding rate will gradually increase or decrease based on the market skew. Heavily skewed market will see one side of traders gradually paying more funding fee to the other side. For more information on the Funding Rate model, please visit [here.](/protocol-and-safety-parameters#velocity-based-funding-rate) Note that the Funding Fee accrues over time and get settled every time a position is modified, opened, or closed. Specific parameters for the Funding Fee for each asset coming soon. #### Liquidation Fee: The liquidation fee is incurred when the trader’s position is liquidated by the platform. It is charged at a flat rate of $5.0 and is used to cover the gas and operation costs when liquidating high-risk positions. For more details on the liquidation process, please visit this [link.](/liquidation) ### Margin Fractions (IMF & MMF) There are two margin fractions, which determine the traders' margin requirements, at Flex Perpetuals: * **Initial Margin Fraction (IMF):** The Initial Margin Fraction is a parameter set by Flex Perpetuals, and is used to determine the initial margin requirement. It is displayed as a percentage & different asset classes will have different IMF. * **Maintenance Margin Fraction (MMF):** The Maintenance Margin Fraction is a parameter set by Flex Perpetuals, and is used to determine the Maintenance Margin Requirement. It is displayed as a percentage & similar to IMF, the MMF will be different for different asset classes. Below is the table representing Initial Margin Fraction (IMF) & Maintenance Margin Fraction (MMF) for each asset class.
Asset ClassInitial Margin Fraction (IMF)Maintenance Margin Requirement (MMR)
Cryptocurrency2.0 to 4%1.0%
Forex0.1%0.05%
Commodity2.0%1.0%
## Adaptive Pricing Mechanism Flex Perpetuals employs a mechanism called "Adaptive Pricing" to help bring balance between the long and short open interest of each trading asset. When a user opens or closes a trading position, the Adaptive Pricing mechanism applies a premium or a discount on top of the oracle price based on the resulting skew after the transaction is executed between the long and short open interest of the asset. If the long open interest is larger than the short open interest, a premium will be applied to the price of the asset. On the other hand, if the short open interest is larger than the long open interest, a discount will be applied to the oracle asset price. The premium/discount from the Adaptive Pricing mechanism will encourage or discourage traders to open long or short positions on the asset accordingly. Below is a table summarizing the premium and discount applied to the price in different scenarios.
Open Interest SkewAdaptive Pricing Applied on Entry / Close Price
Long > ShortPremium
Short > LongDiscount
For the formula and the example calculation of the Adaptive Pricing Mechanism, please visit [here.](https://docs.google.com/spreadsheets/d/11XXpyEP-4yNPP7At7pEW6iZaLKjQCXJzLfyVssXwDaY/edit?usp=sharing) # Market Making (FLP Vault) Below are the topics that we will be covering in this section: * [Introduction to the FLP Vault](#introduction-to-the-flp-vault) * [FLP Technical Architecture](#hlp-technical-architecture) * [Benefits for Liquidity Providers](#benefits-for-liquidity-providers) * [Protection for FLP Depositors](#protection-for-hlp-depositors) ## Introduction to the FLP Vault Similar to other pool-based DEXs, Flex Perpetuals has its own liquidity pool, called the FLP, which provides the market making liquidity for traders. The FLP vault **provides liquidity for leveraged traders on Flex Perpetuals**. In addition, it also functions as the counter party to these leveraged traders. **The profits and losses from counter trading on the platform also accrue to FLP stakers.** To compensate the depositors of the FLP vault for providing the market making liquidity, Flex Perpetuals allocates the largest share of the protocol fees to these users along with other benefits (more details [here](/tokenomics/other-platform-tokens#hlp)). The FLP vault comprises of three assets, as follow: | Asset | Target Weight | | ----- | ------------- | | ETH | 20% | | cbBTC | 40% | | USDC | 40% | {% hint style="info" %} FLP might also contain other assets as they are collected from collateral of losing trades. These assets will be swapped into USDC, WETH & cbBTC periodically to maintain the desired target weight. {% endhint %} ## FLP Technical Architecture Below, we share with you the technical architecture on our Market Making feature:
1. User deposits assets into the Flex Perpetuals FLP & receive FLP tokens which are staked in the platform to earn revenue & incentives. 2. The liquidity in the FLP pool is used to market make for traders at Flex Perpetuals, and consequently, accrues profits/losses from counter trading & fees 3. Fees are then distributed back to FLP stakers in the form of USDC along with esFDX incentive rewards ## Benefits for Liquidity Providers By depositing assets in the FLP vault, you will earn the following benefits: * 45% of Flex Perpetuals protocol revenue, paid in USDC * Profits (or losses) from counter trading on Flex Perpetuals * Exposure to cbBTC & ETH price performance * esFDX rewards based on the size of your FLP stake & emission rates ## Protection for FLP Depositors Flex Perpetuals have implemented multiple measures to minimize the risk of LPs taking on too much one-sided exposure, allowing them to continually earn on protocol generated fees. ### 1. Max Utilization limit Flex Perpetuals reserves the liquidity in FLP to be paid as profits to traders. There is a max utilization for FLP, beyond which new positions are not allowed to be opened (traders are still allowed to reduce their OIs). This parameter is in place to ensure some liquidity is always available for LPs to withdraw. ### 2.Auto Deleverage (ADL) Each individual trading position will have an in-profit price target where a position will be automatically closed for users. This guardrail is put in place to limit the downside to the LPs. The ADL price is market-specific and is a function of initial margin requirement. It is set at level that balances between the risk for LPs vs. the attractiveness for traders. ### 3. Profit Reserve Buffer Flex Perpetuals keeps track of the net global PnL of all traders against the FLP pool. Once the net global PnL hits a percentage threshold relative to the FLP's TVL, the protocol will start auto deleveraging open positions, starting from the most in-profit positions, to de-risk the overall platforms and LPs. The Profit reserve buffer is calculated using the formula below: $$ ProfitReserveBuffer = 1 + NetGlobalPnL / (FLP's TVL) $$ ### 4. Open Interest Limit Each market will have its own open interest limit, which can be set separately for the short side and the long side. The ***Open Interest Limit*** defines the maximum ongoing open interest that each asset can have on each side, beyond which new open interest are not allowed. ### 5. Velocity-based Funding Rate: The Funding Rate is charged on the traders’ position, similar to the borrowing rate. The Funding Rate helps bring a balance between long and short OI on Flex Perpetuals*,* thus ensuring our LPs are not too exposed to one side of the market. Flex Perpetuals utilizes a velocity-based funding rate model. Instead of the typical model where the long-short skew determines the funding rate, **our model have the skew determine the velocity of the funding rate.** $$ d(FundingRate)/dt = k \* MarketSkew $$ This slight adjustment in the formula has a large implication. With the traditional model, there is no incentive to completely eliminate the skew as funding would immediately go to zero, and some arbitrage strategies -e.g., carry trade, would no longer be viable. With the velocity-based model the rate will only gradually increase or decrease overtime. So even after the skew is offset, the funding rate will persist overtime until the market has shifted to the other side, creating a better incentive model to maintain the neutrality for the market. Example: The BTC Perp market currently has $1,000,000 in LONG positions and $200,000 in SHORT positions. Three scenarios can happen for this market from here: * **Skew stays long** - No one enters (or exits) this market. Funding rates will continue drifting upwards. Longs pay shorts an increasing amount over time. * **Skew becomes neutral** - Traders bring the skew to neutral (1,000,000 LONG and 1,000,000 SHORT.) Funding rates will stay the same. Longs pay shorts the same amount each hour. * **Skew flips to short** - Traders flip the skew to SHORT (500,000 LONG and 1,000,000 SHORT). Funding rates will decrease. Longs pay shorts a decreasing amount each hour. Eventually, if the state persists, Shorts will start paying Longs. For more information on the Funding Rate model, please visit [here.](/protocol-and-safety-parameters) ### 6. Adaptive Pricing Mechanism Flex Perpetuals employs a mechanism called "Adaptive Pricing" as another way to incentivize / penalize traders to help bring balance between the long and short open interest of each trading asset. When a user **opens or closes** a trading position, the Adaptive Pricing mechanism **applies a premium or a discount** on top of the oracle price based on the resulting skew after the transaction is executed between the long and short open interest of the asset. If the long open interest is larger than the short open interest, a premium will be applied to the price of the asset. On the other hand, if the short open interest is larger than the long open interest, a discount will be applied to the oracle asset price. The premium/discount from the Adaptive Pricing mechanism will encourage or discourage traders to open long or short positions on the asset accordingly. Below is a table summarizing the premium and discount applied to the price in different scenarios.
Open Interest SkewAdaptive Pricing Applied on Entry / Close Price
Long > ShortPremium
Short > LongDiscount
### Adaptive Pricing Example Calculation: **Max Skew Scale (USD):** 300,000,000 **ETH Oracle Price (USD):** 1,800 **ETH Open Interest:** 0 Alice opens long position on ETHUSD with the position size of $1M. The price that Alice will get is calculated as follows: > **marketSkew** = 0 > > **premiumDiscountBefore** = 0 / 300,000,000 = 0 > > **premiumDiscountAfter** = (0 + 1,000,000) / 300,000,000 = 0.00333333 > > **priceBefore** = 1,800 + (1,800 \* 0) = 1,800 > > **priceAfter** = 1,800 + (1,800 \* 0.00333333) = 1,805.999994 > > **adaptivePrice** = (1,800 + 1,805.999994) / 2 = 1,802.999997 Alice will enter this position with the adaptive price of **1,802.999997**. This price is not in favor of Alice, because Alice opened a long position that caused the market to skew towards the long side. Hence, Alice received a premium vs. Oracle price on her entry price from the Adaptive Pricing mechanism. Bob then opens a short position on ETHUSD with the position size of $500k. Assuming there was no price movement after Alice opened her position and the Oracle Price of ETH is still at $1,800, the price that Bob will get is: > **marketSkew** = +1,000,000 > > **premiumDiscountBefore** = 1,000,000 / 300,000,000 = 0.00333333 > > **premiumDiscountAfter** = (1,000,000 + -500,000) / 300,000,000 = 0.00166667 {% hint style="info" %} Note that the size delta for Bob's position will be negative as he is shorting. {% endhint %} > **priceBefore** = 1,800 + (1,800 \* 0.00333333) = 1,805.999994 > > **priceAfter** = 1,800 + (1,800 \* 0.00166667) = 1,803.000006 > > **adaptivePrice** = (1,805.999994 + 1,803.000006) / 2 = 1,804.5 Bob will enter his short position at the adaptive price of **1,804.5**. This is a favorable price to Bob because Bob’s position reduced the market skew from the long. ### 7. Adaptive Trading Fees The adaptive trading fee is charged as a percentage of the trader's position size on top of the trading fee. This takes our security to the next level and improves user experience at the same time as it enables us to: * List more crypto markets including ones with lower market cap * Increase Max. Trade Size
The adaptive trading fees are implemented on ALL crypto markets **EXCEPT BTC and ETH, where users can still enjoy the same flat low 0.02% trading fees.** ### Adaptive Trading Fee Example: Alice wants to open a Long AERO position with a size of 300,000 USD * 1% Ask orderbook depth = 750,000 USD (i.e., market buy order of 750k USD would move the price up 1% on Binance) * epochDelta = 0; (Alice is the first to trade in the 15-min window) * Volatility of AERO is 0.0035 * k1 = 1.25; k2 = 0.02 * AERO’s fixed trading fee = 0.05% Plugging all the values into the formula, we see that the adaptive fee for Alice will be 0.05% + 0.013% = **0.063%.** The graph below shows how the total fee would be for Alice, based on her trade size. As you can see, if Alice’s trade is < \~$100,000 USD, her trading fee will be roughly just 0.07% (no impact from ATF), and the max 1% fee is hit if her trade is > \~$620k USD.
For the formula and the example calculation of the Adaptive Trading Fee, please visit [here.](https://docs.google.com/spreadsheets/d/11XXpyEP-4yNPP7At7pEW6iZaLKjQCXJzLfyVssXwDaY/edit?usp=sharing) # Revenue Share LP (stFDXLP) Below are the topics that we will be covering in this section: * [Introducing FDX/ETH LP and stFDXLP staking](#introducing-fdx-eth-and-stfdxlp-staking) * [FDX/ETH & stFDXLP staking Architecture](#fdx-eth-and-stfdxlp-staking-architecture) * [Benefits for Liquidity Providers](#benefits-for-liquidity-providers) ## Introducing FDX/ETH and stFDXLP staking $FDX is the revenue share and governance token of Flex Perpeturals. When paired with ETH and staked as stFDXLP at Flex Perpetuals, it receives a share of the protocol revenue and will grant the holder participation in the governance process of the protocol.\ \ **$FDX can be purchased from the FDX/ETH LP hosted on Aerodrome.Finance.**\ \ $FDX holders can pair with $ETH and stake as stFDXLP on the Flex Perpetuals platform to earn revenue share, incentive rewards and governance voting rights. Alternatively FDX/ETH LP can be staked directly on Aerodrome for $AERO rewards (heavily incentivised by FLEX). {% hint style="info" %} Users can choose to stake and unstake stFDXLP tokens at anytime. {% endhint %} ## FDX/ETH & stFDXLP Staking Architecture Below, we share with you the staking architecture on our FDX/ETH LP:
1. User pairs $FDX with $ETH on Aerodrome Finance. 2. The user then chooses to stake as FDX/ETH on Aerodrome Finance or stake natively on Flex Perpetuals in the stFDXLP contract. 3. Users who stake as stFDXLP on FLEX will benefit from revenue share, esFDX incentive emissions and voting rights. 4. Users who choose to stake on Aerodrome will benefit from incentivised $AERO rewards. ## Benefits for Liquidity Providers/Stakers on Flex Perpetuals By staking FDX/ETH in the stFDXLP staking contract, you will earn the following benefits: * 30% of Flex Perpetuals protocol revenue, paid in USDC * esFDX rewards based on the size of your stFDXLP stake & emission rates * Governance & voting rights ## Benefits for Liquidity Providers/Stakers on Aerodrome By staking FDX/ETH in the Aerodrome staking contract, you will earn the following benefits: * $AERO rewards that will be highly incentivised by Flex Perpetuals * No locking period
# Markets Flex Perpetuals currently supports leveraged trading of the following asset classes: * Cryptocurrency The market parameter of each market can be viewed here. {% embed url="" %} {% hint style="info" %} More markets will be added over time. {% endhint %} # Flex Perpetuals Launch Plan (BASE) The launch of Flex Perpetuals on BASE will be done in four key phases. Each launch phase will have different objectives. Below, we discuss the specific details and how you can participate to earn benefits from each phase: * [Phase 1: Seed Raise & Flex Testnet](#phase-1-seed-raise-and-flex-testnet) * [Phase 2: $FDX Token Generation Event](#phase-2-usdfdx-token-generation-event) * [Phase 3: FLP SURGE](#phase-3-flp-surge) * [Phase 4: Full-Scale Launch](#phase-4-full-scale-launch) ### **Phase 1: Seed Raise & Flex Testnet** At the start of our launch event, we will open the **Flex Perpetuals Testnet**, allowing users to explore the platform's core functionalities. Traders can begin **placing trades, depositing collateral, and experiencing the full suite of trading tools** available on Flex. To incentivize participation, we will host a **Testnet Trading Competition**, where users can compete for **USDC prizes** based on their trading performance under competition rules. This phase also includes our **Seed Raise**—a **community-driven investment round**, giving our most loyal supporters the chance to invest at the earliest stage, an opportunity typically reserved for Venture Capital. #### **Key Details:** 🔹 **Total Allocation:** 10% of total supply (**500,000 $FDX**)\ 🔹 **Raise Cap:** $750,000\ 🔹 **Equal Rate:** All Seed participants acquire $FDX at the same rate Seed participants will be able to **claim and stake their $FDX** once the platform is live. These tokens will be distributed as **$LFDX**, subject to revenue-sharing and vesting terms. **Full details available** [here](https://docs.flex.trade/tokenomics/usdfdx-token#seed-round) ### **Phase 2: $FDX Token Generation Event (TGE)** Our **Token Generation Event (TGE)** follows a **first-come, first-served model**, where the **total ETH raised determines the launch price**. This phase provides an opportunity for investors to acquire **$FDX at a fair and transparent rate**, with all participants receiving tokens at the same price. #### **Key Details:** 🔹 **Total Allocation:** 6% of total supply (**300,000 $FDX**)\ 🔹 **Raise Cap:** 575 ETH\ 🔹 **Equal Rate:** All TGE participants receive $FDX at the same price #### **Launch Price Calculation:** The launch price of **$FDX** is determined by the total ETH raised, divided by the **300,000 $FDX available**. **Example Calculation:** 575 ETH / 300,000 FDX = 0.0019 ETH per $FDX #### **TGE Summary:** 💰 **Minimum Purchase Amount:** None\ 💰 **Max Cap:** **575 ETH** (*If contributions exceed this amount, $FDX will be distributed pro-rata*)\ 💰 **Contribution Currency:** ETH\ 💰 **Vesting:** **Immediately liquid and claimable at the end of the TGE** This phase ensures a **fair launch**, allowing all participants to secure their $FDX with immediate liquidity. 🚀 {% hint style="info" %} Before participating in the Token Generation Event (TGE), you must confirm that you are not located, incorporated, or a citizen or resident of the United States of America, People’s Republic of China, Bermuda, Burundi, Central African Republic, Cuba, Democratic Republic of Congo, Eritrea, Guinea-Bissau, Iran, Libya, Mali, North Korea, Palestine, Republic of Seychelles, Somalia, South Sudan, Sudan, Syria, Western Sahara, Yemen, Crimea and Sevastopol, or any other state, country, or jurisdiction where participation in this launch would be illegal according to applicable law. {% endhint %} ### Phase 3: FLP SURGE In **Phase 3**, we will **bootstrap the FLP vault**, increasing the market-making liquidity to support our **leveraged trading features**. To reward early adopters of **Flex Perpetuals**, we will be offering **additional incentives** for participants in this phase of the launch. #### **Incentive Details:** * **Deposits made in this phase will earn additional monthly incentive rewards**, based on the value of the deposit and the tier in which assets are deposited. * A maximum of **250,000 $esFDX tokens** will be allocated to participants, with rewards determined by the total amount raised and the deposit tiers. | Tier | Capacity ($FLP) | esFDX Allocation | | ---------- | --------------- | ---------------- | | 1 | 500,000 | 70,000 | | 2 | 500,000 | 60,000 | | 3 | 750,000 | 50,000 | | 4 | 1,000,000 | 40,000 | | 5 | 1,500,000 | 30,000 | | **Totals** | **4,250,000** | **250,000** | #### **How to Calculate Your Rewards:** **Example:**\ To calculate your estimated monthly esFDX rewards: (Your FLP deposit / Total FLP in tier) \* (Tier esFDX allocation / 12) *Example for $10,000 deposit in Tier 1 (10,000 / 500,000) \* (70,000 / 12) = 116.66 esFDX per month* #### **Additional Whale & Large Investor Bonus:** * Deposits between **$50k - $100k** will receive a **5% boost** on their $esFDX incentives. * Deposits over **$100k** will receive a **15% boost** on their $esFDX incentives. #### **Liquidity Lock & Withdrawal:** * Liquidity committed in **Phase 3** will be **locked for the first month**. * After the first month, participants can withdraw their funds **at any time**, but they will no longer be able to re-enter with the same Surge benefits once they’ve withdrawn. * If a user withdraws their liquidity, the rewards for that month and the following months will be redistributed to the remaining FLP surge participants. * If a user partially withdraws, the reduction in ongoing esFDX bonus rewards will be proportional to the amount withdrawn. #### **Key Dates:** * **Phase 3 Start Date:** **02/11/2025** * **Phase 3 End Date:** **02/16/2025** This phase is designed to maximize **liquidity and reward early participants** with significant incentives, creating a strong foundation for Flex Perpetuals as we scale. 🚀 ## Phase 4: Full-scale Launch ✅ Live Trading Begins – Trade with gasless execution, cross-margin, and up to 100x leverage. ✅ Liquidity Added to Aerodrome – $FDX trading is now live! ✅ Incentive Emissions Activated – Earn rewards through FLP staking, Trade-to-Earn, and liquidity incentives. 🔹 The next evolution of perpetual trading starts NOW. # esFDX Airdrop Creating an exceptional user experience is one of our goals to make Flex Perpetuals standout as one of the leading perpetual DEXes. We also want to encourage users to try using our platform. Through an airdrop of $esFDX tokens, we hope to achieve these goals by incentivizing users to give Flex Perpetuals a try, gather their feedback, and ideally, convert them into long-term users. In this section, we will go through two key topics regarding $esFDX airdrop: * How to qualify for $esFDX airdrop * How much $esFDX token will be allocated as airdrop rewards ## How to qualify for $esFDX airdrop To qualify for $esFDX airdrops, there are two participation options available. These options are not mutually exclusive, meaning you can participate in all of them if you wish. **Option #1: Complete Airdrop Campaigns on Flex Perpetuals' Zealy** Complete Airdrop Campaigns on Flex Perpetuals' Zealy: Participate in airdrop campaigns on Flex Perpetuals' Zealy page and earn points by successfully completing them. Each campaign will have assigned points that contribute to calculating your final share of the airdrop received. **We will continuously release new campaigns up until the end of Phase 1: Public Open Beta, so be sure to follow our profile on Zealy.** {% hint style="info" %} Note that the tasks must be completed by the end of [Phase 1: Public Open Beta](/flex-perpetuals-launch-plan-base#phase-1-public-open-beta) in order for the earned points to count towards the calculation of your share of airdrop. Please also note that Flex Perpetualswill implement anti-sybil measures when calculating the points to ensure the airdrop distribution is as fair as possible. {% endhint %} **Option #2: Become a Beta Tester** Engage in any of the tasks listed below, each of which carries a specific point value. The more tasks you complete, the larger share of the airdrop you will receive. 1. Open a leveraged trading position on different asset classes 2. Make a deposit into the FLP liquidity pool The points you earn from completing the actions above will be used to calculate your airdrop share from the final amount of airdrop allocated to all qualifying participants. Note that the total number of points you earn will be based on the combination of your transaction value and the # of transactions. To prevent sybil attacks, we will only announce the specific point value for each action AFTER the Public Open Beta concludes. We will track your activities directly on-chain. So you don't need to register. You will automatically be tracked. # Roadmap **Q2 2024** * **Beta Launch of Flex Perpetuals**: Beta launch of Flex Perpetuals, creating a superior trading experience for DeFi users on Base with many new features, more asset classes, and additional safety measures. **Q1 2025** * **Full-scale Launch:** Read the details of our launch plan [here.](/flex-perpetuals-launch-plan-base) * **Launch of Governance Tokens:** Launch $FDX tokens, which will function as a governance token for Flex Perpetuals. * **Launch FDX/ETH LP on Aerodrome.Finance:** Launch our Protocol Owned Liquidity on aerodrome and begin incentivising pool to benefit FDX/ETH stakers. * **Launch Governance Process & Forum:** Create forum to allow community to discuss potential opportunities to further strengthen the Flex Perpetuals ecosystem. Implement voting mechanism. * **Listing on Key Data Sites:** List Flex Perpetuals on key data aggregators website -e.g., DefiLlama — for better discovery by the community. * DeFiLlama * CoinGecko * DeBank * De.Fi * Dextools * Dex Screener * **Referral Program:** Develop a referral program, allowing referrers to earn on a portion of fees generated from their referees and provide referees with trading fee discount. * **Grow Flex Perpetuals Userbase and Community:** Grow Flex Perpetuals through various marketing campaign and initiatives - AMAs, paid marketing, trading competitions, etc. * **Listing Additional Collateral Assets:** Expand the selection of assets users can use as collateral on Flex Perpetuals. * **Listing Additional Markets:** Expand the selection of assets users can trade on Flex Perpetuals. * **Info & Analytics Page:** Track key usage statistics for Flex Perpetuals. * **Additional Utilities for $FDX:** Explore adding additional utilities for the $FDX token. **Q2 2025 & Beyond** * **Demo/Paper Trading:** Aligning with education ethos and drive more traffic to Flex Perpetuals * **Copy Trading Vaults:** Allow users to copy traders on the flex platform driving more volume through the platform. * **Flex Perpetuals** team will remain nimble and resilient in making adjustments to the roadmap to ensure Flex Perpetuals can respond to the dynamic market environment and capture any new potential opportunity for growth. **Please note that this roadmap is subjected to change.** # Trade 2 Earn Points System Flex Perpetuals is committed to rewarding traders through our **Trade 2 Earn** program, designed to provide continuous incentives for active users. By participating in this program, traders earn [**Flex Trade Credits (FTC)**](/tokenomics/other-platform-tokens#flex-trade-credits-ftc), which are used to track trading volume and reward users with [**esFDX**.](/tokenomics/other-platform-tokens#esfdx) ### **How It Works** * Every $1 volume traded on **Flex Perpetuals** earns **Flex Trade Credits (FTC)**. * FTC is **non-transferable** and only used for tracking trade volume. * Accumulated FTC determines the **esFDX rewards** allocated to traders. {% hint style="info" %} Only trades that increase positions' size will be awarded FTC {% endhint %} The more you trade, the more **FTC** you accumulate, increasing your **esFDX rewards** over time. Check out the full details on **FTC** here: [Flex Trade Credits (FTC)](https://docs.flex.trade/tokenomics/other-platform-tokens#flex-trade-credits-ftc). ### **Dynamic Emissions Model** Our **Trade 2 Earn** program operates on a **dynamic emissions model**, ensuring that **esFDX rewards adjust based on the total trading volume each week**. #### **Key Features of Dynamic Emissions:** ✅ **More Volume = More Rewards**: When total platform trading volume increases, **more esFDX is distributed to active traders**. \ ✅ **Adaptive Allocation**: esFDX rewards scale with trading activity, ensuring fair distribution and long-term sustainability. \ ✅ **Balanced Incentives**: The emissions model ensures that incentives remain strong while aligning with platform growth. This system **encourages consistent engagement** by rewarding traders based on their contribution to the platform’s liquidity and trading activity. {% hint style="info" %} During the first two weeks of live trading, starting **February 18th, 2025**, we will actively monitor trading volume and finalize the **weekly volume targets** for our **dynamic emissions model** to ensure optimal rewards distribution. {% endhint %} {% hint style="info" %} FTC snapshot will be taken at 00:00 on each Thursday and esFDX rewards will be distributed within 24 hours {% endhint %} \ \ **Why Trade 2 Earn?** The Flex Perpetuals **Trade 2 Earn** program is designed to **drive activity, increase volume, and provide sustainable incentives** for traders on Flex Perpetuals. By offering **dynamic, volume-based rewards**, we ensure that traders benefit directly from their activity while minimising excessive inflation of our $FDX token. #### **Benefits for Traders:** 🔥 **Earn extra rewards just by trading** – passive esFDX incentives - details [here.](/tokenomics/other-platform-tokens#esfdx)\ 🔥 **No sign-ups required** – all trades automatically qualify \ 🔥 **Aligned with platform growth** – more trading = better rewards # Protocol and Safety Parameters In this section, we will be covering the following protocol parameters: * [Global Parameters](#global-parameters) * [Min Profit Duration](#min-profit-duration) * [Trade Limit](#trade-limit) * [Trading Fees](#trading-fees) * [Adaptive Trading Fees](#adaptive-trading-fees) * [Margin Fractions](#margin-fractions) * [FLP Parameters](#flp-parameters) * [Collateral Factor](#collateral-factor) * [Borrowing Fees](#borrowing-fees) * [Velocity-based Funding Rate](#velocity-based-funding-rate) * [Protocol Fees Distribution](#protocol-fees-distribution) ## Global Parameters | Parameter | Value | Unit | Description | | ---------------------------- | ----- | -------- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------- | | Funding Interval | 1 | Second | Funding interval to charge borrowing fee and funding fee | | Max Position per Sub-account | 10 | Position | Max # of active positions. To have more positions, use an additional sub account. Limit is in place to efficiently manage liquidation as well as limit gas fee / tx. | | PnL Collateral factor | 0.8 | n/a | Collateral factor given to unrealized PnL | ## Min Profit Duration To protect FLP from short-term price manipulation for less liquid markets, we put in place a Minimum Profit Duration for trader. During this period, the PnL for a trade is calculated as follow: $$ // PnL = Min(0, ActualPnL) $$ The Min Profit Durations for each trade size are as followed: | Trade Size | Min Profit Duration (second) | | ----------- | ---------------------------- | | 0 - 100k | 60 | | 100k - 200k | 300 | | 200k | 600 | The Min Profit Duration for Forex and Commodity market are as followed: | Min Profit Duration (second) | Market | | ---------------------------- | ------------------------------------------------------------------------------------------- | | 60 | JPYUSD, XAUUSD, EURUSD, XAGUSD, AUDUSD, GBPUSD, USDCHF, USDSGD, USDCNH, USDHKD, DIX, USDSEK | ## Trade Limit In order to limit the FLP exposure per trade, we implemented a limit trade size that is relative to FLP size. **Max $ / Trade:** Max value of position size per trade **Max Position Size:** Max value of position size per market per sub-account You can check the **Max $ / Trade and Max Position Size** [here.](https://docs.google.com/spreadsheets/d/1uJdUCVMW7kIkQma_Lqw6_-zCWWshH7veCAX7rHl8p74/edit?usp=sharing) ## Trading Fees Flex Perpetuals charges Trading Fees on the traders' position size. The table below summarizes the trading fees for each asset class: | Asset Class | Trading Fees (% of Position Size) | | -------------------- | --------------------------------- | | BTC & ETH | 0.02% | | SOL | 0.03% | | Other Cryptocurrency | 0.05% to 0.08% | | FX | 0.01% | | Commodity | 0.05% | {% hint style="info" %} In celebration of FLEX's launch on the BASE mainnet, we're excited to announce a special discount on trading fees for BTC and ETH market to 0.02%! {% endhint %} ## Adaptive Trading Fees FLEX charges Adaptive Trading Fees (ATF) on ALL crypto markets\* EXCEPT **BTC and ETH, where users can still enjoy the same flat low 0.02% trading fees.** *\*Currently $BRETT, $AERO & $HYPE are excluded from ATF and carry a static 0.08% trading fee.* ATF is calculated based on various variables including asset’s volatility and trading size relative to asset’s liquidity depth on CEX. The formula and the parameters for ATF are as follow:
| Parameter | Value | | --------- | ----- | | k1 | 1.25 | | k2 | 0.005 | ## Margin Fractions * **Initial Margin Fraction (IMF):** The Initial Margin Fraction is used to determine the initial margin requirement. It is displayed as a percentage & different asset classes will have different IMF. * **Maintenance Margin Fraction (MMF):** The Maintenance Margin Fraction is used to determine the Maintenance Margin Requirement. It is displayed as a percentage & similar to IMF, the MMF will be different for different asset classes. | Asset Class | Initial Margin Fraction (IMF) | Maintenance Margin Fraction (MMF) | | -------------- | ----------------------------- | --------------------------------- | | Cryptocurrency | 2.0% to 20.0% | 1.0% to 10.0% | | FX | 0.1% | 0.05% | | Commodity | 2.0% | 1.0% | ## FLP Parameters | Parameters | Value | Description | | --------------------------- | ----- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | | FLP Base Deposit Fee % | 0.00% | Not Applicable | | FLP Base Withdrawal Fee % | 0.30% | Base Fee for withdrawing from FLP (see calculation below.) | | FLP Dynamic Fee % | 0.50% | The dynamic fee can be + / - and will be charged or discounted in addition to deposit/withdrawal fee depending if the transaction moves the pool's weight further away from / closer to the target weight. | | Max Utilization % | 80% | Max utilization for FLP, beyond which new positions are not allowed to be opened (traders are still allowed to reduce their OIs.) This parameter is in place to ensure some liquidity is always available for LPs to withdraw. | | FLP Profit Reserve Buffer % | 20% | Flex Perpetuals keeps track of the net global PnL of all traders against the FLP pool. Once the net global PnL hits a percentage threshold relative to the FLP's TVL, the protocol will start auto deleveraging open positions, starting from the most in-profit positions | $$ ProfitReserveBuffer = 1 + NetGlobalPnL / (FLP's TVL) $$ {% hint style="info" %} Note: the FLP total deposit / withdrawal fees is the sum of base fee % and tax rate % and can range from 0.0% -> 0.8% {% endhint %} ## FLP Target Weights ### Flex Perpetuals (BASE): | Asset | Target Weight | | ----- | ------------- | | WETH | 20% | | cbBTC | 40% | | USDC | 40% | {% hint style="info" %} FLP might also contain other assets as they are collected from collateral of losing trades. These assets will be swapped into USDC, WETH, or cbBTC periodically to maintain the desired target weight. {% endhint %} ## Collateral Factor A discount factor applied to the deposited collateral based on the risk of the asset. ### Flex Perpetuals (BASE): | Asset | Type | LTV | | ----- | -------------- | ---- | | BTC | Volatile Asset | 0.90 | | ETH | Volatile Asset | 0.90 | | USDbC | Stable Asset | 1.00 | | USDC | Stable Asset | 1.00 | ## Borrowing Fees Flex Perpetuals currently uses a single-slope, utilization-based Borrowing Rate model, with a Base Borrowing Rate of **0.005% per hour** is charged. $$ BorrowingInterestRatePerHour = 0.005 \* Utilization $$ The borrowing interest **is assessed on the Reserved Profit Amount and NOT the Position Size.** The profit reserve refers to the earmarked amount from the FLP pool to pay out the profitable trading position. The reserve amount is a function of the % of initial margin fraction and is based on the asset class. | Asset Class | Profit Reserve % | | -------------------- | ---------------- | | BTC & ETH | 2,500% | | Other Cryptocurrency | 250% to 1250% | | FX | 5,000% | | Commodity | 750% | Specific market parameters can be found for each market[ here.](https://docs.google.com/spreadsheets/d/1uJdUCVMW7kIkQma_Lqw6_-zCWWshH7veCAX7rHl8p74/edit?usp=sharing) **Example:** > Alice opens a BTC long position with the size of $100,000 USD > > * BTC initial margin fraction: 1% > * Crypto Profit Reserve factor: 2,500% > > Profit Reserve = 1% \* 2,500% \* $100,000 = $25,000 > > Thus, Alice is paying the borrowing interest on $25,000 and NOT $100,000 ## Velocity-based Funding Rate Flex Perpetuals utilizes a velocity-based funding rate model. Instead of the typical model where the long-short skew determines the funding rate, **our model have the skew determine the velocity of the funding rate.** This slight adjustment in the formula has a large implication. With the traditional model, there is no incentive to completely eliminate the skew as funding would immediately go to zero, and some arbitrage strategies -e.g., carry trade, would no longer be viable. However, with the velocity-based model, the rate will only gradually increase or decrease overtime. So even after the skew is offset, the funding rate will persist overtime until the market has shifted to the other side, creating a better incentive model to maintain the neutrality for the market. The following is the equation for Funding Rate & Funding Fee calculation:
{% hint style="info" %} Note that the Funding Rate accrues over time and get settled every time a position is modified, opened, or closed. {% endhint %} ## Protocol Fees Distribution Below we share the sources of revenue for Flex Perpetuals and how they will be distributed to the different stakeholders.
SourceFLP StakersstFDXLP StakersDevFund*POL**
Trading Fee45%30%10%15%
Borrowing Fee45%30%10%15%
Liquidation Fee*50%50%0%0%
FLP Deposit / Withdrawal45%30%10%15%
\*Development Fund\ \*\*Protocol Owned Liquidity {% hint style="info" %} \*Liquidation is a flat $5 fee to cover operating cost {% endhint %} # Oracles Flex Perpetuals uses the [industry standard decentralized oracles Chainlink](https://docs.chain.link/data-feeds) as its primary oracle which provides highly secure and reliable, tamper-resistant Data Streams. \ Chainlink oracles are used across our Base instance for both Crypto and RWA: ### RWA Markets: | TSLA-USD | | --------- | | AAPL-USD | | NVDIA-USD | | MSTR-USD | ### Crypto Markets | BTC-USD | | ----------- | | ETH-USD | | LINK-USD | | SOL-USD | | AAVE-USD | | ADA-USD | | AERO-USD | | AVAX-USD | | BRETT-USD | | BNB-USD | | DOGE-USD | | HBAR-USD | | HYPE-USD | | PENDLE-USD | | PEPE-USD | | SHIB-USD | | SUI-USD | | TON-USD | | TRX-USD | | UNI-USD | | VIRTUAL-USD | | XRP-USD | # Audits & Contracts Flex Perpetuals leverages HMX technology validated through rigorous audits by [Foobar](https://twitter.com/0xfoobar), [WatchPug](https://twitter.com/WatchPug_), and [Cantina](https://twitter.com/cantinaxyz). Utilizing the identical code base as HMX ensures that our security standards align seamlessly with theirs, assuring the utmost in security for our platform. You can find the audit reports from each security expert here: * [Foobar](https://drive.google.com/file/d/1oS9lRpw7Il_cw2F21zBFXeaode-9xdM-/view) * [WatchPug](https://github.com/HMXOrg/v2-evm/blob/main/audits/HMX_Audit_Report_by_WatchPug.pdf) * [Cantina](https://github.com/HMXOrg/v2-evm/blob/main/audits/CantinaManaged-HMX-final.pdf) Additionally, with Flex Perpetuals focus on security and transparency, Code4rena were engaged to host a competitive Audit with a $25k Bounty applied. \ \ You can find the audit report here:\ [Code4rena](https://code4rena.com/reports/2024-12-flex-perpetuals) # Referral Program ## Referral Program Mechanics Flex Perpetuals has its own referral program where users can sign up to create their referral link. Participation in the referral program yields two key benefits: * [Rebates of fees for referrers](#rebates) * [Discount on trading fees for code users](#trading-fee-discount) #### **Rebates** Users at Flex Perpetuals can sign up to become a referrer. Referrers participating in Flex Perpetuals referral program can earn up to 15% rebates on trading fees generated by the users using their referral code. The placement of a referrer into a specific tier is determined by the weekly accumulation of Flex Trade Credits ($FTC) by the users who use their referral code during that week, as well as the number of active users who utilize their referral code during the same period. Each tier corresponds to different rebate rates, which are detailed in the table below: | Tier | Referrer Rebate | Weekly FTC (Mn) | # of Active Users | | ---- | --------------- | --------------- | ----------------- | | 1 | 5% | n/a | n/a | | 2 | 10% | 50 | 15 | | 3 | 15% | 100 | 30 | ## Trading Fee Discount Participants in our referral program who use a referral code will receive discounts on their trading fees. The discount percentage will be determined by their discount tier, which, in turn, is **based on their accumulated Flex Trade Credits ($FTC) for the week**. Below is a table that outlines the FTC balance required for each tier and its associated discount rate: | Tier | Trading Discount | Weekly FTC (Mn) | | ---- | ---------------- | --------------- | | 1 | 2.0% | n/a | | 2 | 3.0% | 1,000,000 | | 3 | 5.0% | 5,000,000 | | 4 | 7.5% | 20,000,000 | | 5 | 10.0% | 50,000,000 | | 6 | 12.5% | 100,000,000 | ## Rebates & Discount Payment Schedule The tier at which the referrer and the code user are placed in for rebates and discount respectively are determined based on the amount of FTC accrued that week by the code users for rebates and by the user for trading fee discount. Subsequently, the trading discount and rebate rates corresponding to these tiers are applied to the fees generated within that same week. This includes code users’ fees for rebates and the users’ own trading fees for discounts. The result of these calculations yields the total amount of USDC to be distributed to program participants. Payments are settled on a weekly basis, within 24 hours of every **Thursday at 00:00 UTC**. **Example calculation** 🧮 Let’s assume the case of Alice and calculate how much rebates and discount she should receive for week #1. Below are the statistics of Alice’s platform usage & her referral program details during week #1: * \# of Active Users using her referral code: 20 * Total trading volume on BTC & ETH from her code users (from opening trades only): $100,000,000 * Alice’s total trading volume on BTC & ETH (from opening trades only): $2,000,000 * Total weekly fees paid by Alice’s code users: $80,000 * Total weekly fees paid by Alice: $1,600 * Alice’s code users’ accrued FTC: 4 \* $100,000,000 = 400,000,000 * Alice’s accrued FTC: 4 \* 2,000,000 = 8,000,000 > For more information on FTC is accrued, please visit [here](/tokenomics/other-platform-tokens#traders-loyalty-credits-tlc). Based on the statistics above, Alice is placed in the following tiers for trading fee rebates & discount: * **Rebates Tier:** 2 * **Discount Tier:** 3 Therefore, the total amount of rebates and discount claimable by Alice at the end of week #1 is: * **Rebates:** $80,000 \* 10% = $8,000 * **Discount:** $800 \* 5% = $40 * **Total Claimable:** $8,000 + $40 = $8,040 > Please note that rebates and discounts are calculated based on the trading fees generated **BEFORE** any discount. Flex Perpetuals reserves the rights to void and cancel referral rebates and trading discount payouts from any suspicious abuse of the program such as sybil and self-referral, without a prior notice. # Liquidation Flex Perpetuals implements a rigorous risk management process to help protect both the traders and the market makers, and ensure fairness for both parties. To understand how the liquidation process works, please first familiarize yourself with the terms below: **Initial Margin Requirements (IMR):** The Initial Margin Requirement is the USD value of equity required to open a position or increase position size. Each market will have a parameter called “Initial Margin Fraction” (IMF), which is a percentage of position size to be treated as IMR for that position. The IMR is displayed in USD. **Initial Margin Fraction (IMF):** The Initial Margin Fraction is a parameter set by Flex Perpetuals, and is used to determine the initial margin requirement. It is displayed as a percentage & different asset classes will have different IMF. **Maintenance Margin Requirements (MMR)**: The Maintenance Margin Requirement is the USD value of equity required to maintain the position before it is liquidated by the platform. Each market will have a parameter called “Maintenance Margin Fraction” (MMF), which is a percentage of position size to be treated as MMR for that position. The MMR is displayed in USD. **Maintenance Margin Fraction (MMF):** The Maintenance Margin Fraction is a parameter set by Flex Perpetuals, and is used to determine the Maintenance Margin Requirement. It is displayed as a percentage & similar to IMF, the MMF will be different for different asset classes. **Equity Value:** The Equity Value is the net value of your sub-account. It is the summation of unrealized profits/losses, unrealized fees (funding/borrowing/position opening/closing/liquidation), and collateral value. **Collateral Value:** The Collateral Value is calculated based on the collateral assets and their respective market prices multiplied by the collateral asset LTV. Now, let's take an example of Bob, who deposited 1 BTC as collateral to leveraged trade on Flex Perpetuals. For this example, let's assume the following: * **Bob’s Collateral:** 20,202.02 USDC * **USDC Price:** $1.00 * **USDC LTV:** 0.99 * **Collateral Value:** $20,000.00 USD * **Equity Value:** $20,000.00 USD * **Crypto Asset Initial Margin Fraction (IMF):** 1.00% * **Crypto Asset Maintenance Margin Fraction (MMF):** 0.50% * **Initial Margin Requirement:** $200.00 USD (20,000 \* 1%) * **Maintenance Margin Requirement:** $100.00 USD (20,000 \* 0.5%) Bob then decided to open **two leveraged long positions on ETH and AERO** on Flex Perpetuals. Note that for this example, we will ignore fees accrued to the leveraged positions for the sake of simplicity. Below are the relevant info of Bob's two positions at the time of position opening: * **ETH Price:** $1,700.00 USD * **AERO Price:** $1.20 USD * **ETH Position Size (ETH):** 40.00 ETH * **AERO Position Size (AERO):** 40,000.00 AERO * **ETH Position Size (USD)**: 40 \* 1,700 or $68,000.00 USD * **AERO Position Size (USD)**: 40,000 \* 1.20 or $48,000.00 USD * **ETH** **Position PnL:** 0.00 USD * **AERO** **Position PnL:** 0.00 USD * **Net Position PnL:** 0.00 USD Two days later, ETH price appreciated to $1,780/ETH while AERO price dropped to $0.65/AERO. At this point, the following statistics represent Bob's account & positions: * **ETH Price:** $1,780.00 USD * **AERO Price:** $0.65 USD * **ETH Position Size (ETH):** 40.00 ETH * **AERO Position Size (AERO):** 40,000.00 AERO * **ETH Position Size (USD)**: 40 ETH \* $1,780 or $71,400.00 USD * **AERO Position Size (USD)**: 40,000 AERO \* $0.65 or $26,000 USD * **ETH** **Position PnL:** $71,400 - $68,000 or $3,400 * **AERO** **Position PnL:** $26,000 - $48,000 or -$22,000 * **Net Position PnL:** -$22,000 + $3,400 = -18,400 * **Equity Value:** 20,000 - 18,400 = $1,600 At this point, while the price of AERO dropped significantly, Bob's Equity Value ($1,600) is still higher than both the Initial Margin Requirement ($200) and the Maintenance Margin Requirement ($100). Therefore, Bob can still freely withdraw his collateral (up to $1,400) and his account will not be liquidated for the time being. A day later, the price of AERO and ETH moved to $0.91 and $1,495 respectively. At this point, the following statistics represent Bob's account & positions: * **ETH Price:** $1,495.00 USD * **AERO Price:** $0.91 USD * **ETH Position Size (ETH):** 40.00 ETH * **AERO Position Size (AERO):** 40,000.00 AERO * **ETH Position Size (USD)**: 40 ETH \* $1,495 or $59,800.00 USD * **AERO Position Size (USD)**: 40,000 AERO \* $0.91 or $36,400 USD * **ETH** **Position PnL:** $59,800 - $68,000 or -$8,200 * **AERO** **Position PnL:** $36,400 - $48,000 or -$11,600 * **Net Position PnL:** -$22,000 + $3,400 = -19,800 * **Equity Value:** 20,000 - 19,800 = $200 At this point, Bob's Equity Value ($200) has reached the Initial Margin Requirement ($200) but has not reached the Maintenance Margin Requirement ($100). Therefore, a limit on collateral withdrawal has been placed on Bob's sub account, but his sub account is not yet liquidated. A few minutes later, the price of ARB and ETH moved again to $0.90 and $1,500 respectively. Below is the updated statistics of Bob's account and his positions: * **ETH Price:** $1,500.00 USD * **AERO Price:** $0.90 USD * **ETH Position Size (ETH):** 40.00 ETH * **AERO Position Size (AERO):** 40,000.00 AERO * **ETH Position Size (USD)**: 40 ETH \* $1,500 or $60,000.00 USD * **AERO Position Size (USD)**: 40,000 AERO \* $0.90 or $36,000 USD * **ETH** **Position PnL:** $60,000 - $68,000 or -$8,000 * **AERO** **Position PnL:** $36,000 - $48,000 or -$12,000 * **Net Position PnL:** -$8,000 + $12,000 = -20,000 * **Equity Value:** 20,000 - 20,000 = $0 At this point, Bob's Equity Value dropped below the Maintenance Margin Requirement. As a result, his sub account is liquidated, and the remaining collateral (if any) is returned to him. # Our Partners & Supporters We are proud to be supported by some of the leading names on the Base network and wider Crypto community: * Chainlink Labs * Pyth Network * Aerodrome Finance * Based Cartel # $FDX Token $FDX is the the primary native token of the Flex Perpetuals ecossystem. When paired with $ETH and staked on the platform it acts as a **governance and revenue share token** for the protocol. It has a fixed supply of **5,000,000** tokens (5 million tokens) {% hint style="info" %} Contract address - 0xE248c0bCE837B8dFb21fdfa51Fb31D22fbbB4380 {% endhint %} Key information relating to the $FDX token below: * [FDX Token Allocation](#fdx-token-allocation) * [Circulating Supply Schedule](#circulating-supply-schedule) * [FDX Token Utilities](#fdx-token-utilities) * [Omnichain Fungible Token (OFT) Standard](#omnichain-fungible-token) * [Vesting Transparency](#vesting-transparency) ## $FDX Token Allocation | Category | Allocation % | # Tokens | Vesting | | -------------------- | ------------ | --------- | ------------------------------------------------------- | | Seed Round | 10% | 500,000 | 6 month cliff then monthly (linear) over 18 months. | | FLP Surge | 5% | 250,000 | Monthly (linear) over 12 months | | TGE | 6% | 300,000 | Immediate | | Community Incentives | 44% | 2,200,000 | Over 4 years - monthly | | Ecosystem | 20% | 1,000,000 | 10% Immediately, remaining monthly(linear) over 3 years | | Team | 15% | 750,000 | 6 month cliff then monthly (linear) over 3 years. | ## Community Incentives - 44% * **Total number of tokens:** 2,200,000 * **Release Schedule:** Over four years according to the emission schedule {% hint style="info" %} All of the community incentives will be distributed in the form of esFDX (escrowed FDX). For specific allocation details, please visit the Rewards Allocation page. {% endhint %} ## Ecosystem Fund - 20% **Total number of tokens:** 1,000,000\ **Release Schedule:** 10% of the 20% is unlocked immediately, then linearly release over a period of 3 years. Ecosystem fund is reserved for various growth initiatives for the Flex Perpetuals ecosystem such as marketing, partnership, exchange listings, etc. {% hint style="info" %} Unlocked ecosystem fund **DOES NOT** immediately become part of the circulating supply. They only become available for use when unlocked, but will only be utilized if required. {% endhint %} ## FLP Surge - 5% **Total number of tokens:** 250,000\ **Release Schedule:** Released monthly for 12 months This portion is reserved for participants of the FLP SURGE event that bootstraps our trading liquidity. More details in the Launch Plan section [here.](/flex-perpetuals-launch-plan-base#phase-3-flp-surge) ## Token Generation Event - 6% **Total number of tokens: 300,000** \ **Release Schedule:** Released immediately Token Generation Event where we conduct a fair, open and transparent price discovery mechanism. Our process will give everyone the same chance to participate in the event with no advantage to snipe bots, highest gas (e.g., whales), or insiders. More details in the Launch Plan section [here.](/flex-perpetuals-launch-plan-base#phase-2-usdfdx-token-generation-event) ## Seed Round - 10% **Total number of tokens:** 500,000\ **Release Schedule:** 6 months cliff; then released monthly for 18 months. ## Team - 15% **Total number of tokens:** 750,000\ **Release Schedule:** 6 months cliff; then released monthly for 36 months. ## Circulating Supply Schedule * esFDX is distributed as community incentives and must be vested before it can be sold. * Unlocked ecosystem fund **DOES NOT** immediately become part of the circulating supply. They only become available for use when unlocked, but will only be utilized if required.
## FDX Token Utilities Below are the current and planned utilities for FDX token: **Native @ Flex Perpetuals:** 1. Earn 30% share of protocol revenue in USDC when paired with ETH & staked as stFDXLP (shared with staked esFDX & FP). 2. Earn a share of esFDX community incentives token emissions when paired with ETH & staked as stFDXLP. 3. Earn Flex Points at 100% APR when paired with ETH and staked as stFDXLP. 4. Receive governance voting rights to help shape key decisions on the development of FDX exchange (only stFDXLP holders can vote. esFDX and DP have no voting power - coming soon...) 5. $FDX Token can simply be held as a speculitive play for long term price appreciation {% hint style="info" %} * Unvested private sale FDX token (LFDX) can also be staked to earn a portion of the protocol revenue along with stFDXLP. However, they **ARE NOT** eligble to earn other incentive rewards - esFDX, Flex Points. {% endhint %} **On Aerodrome.Finance** 1. Earn incentivized AERO rewards by staking FDX/ETH LP directly on Aerodrome.Finance {% hint style="info" %} The FLEX team used a portion of Seed capital to buy and lock veAERO. This allows the team to directly incentivize the $FDX/$ETH LP on Aerodrome and provides an interesting dynamic to staking options with the $FDX token. {% endhint %} ## FDX Liquidity FDX team will use part of the contribution from the Seed Round & TGE to launch our FDX-ETH liquidity pool on Aerodrome.Finance with \~$amount dependent on total raise ## Omnichain Fungible Token FDX is built with a multi-chain future in mind. That's why the $FDX token is built utilizing the Layer Zero's Omnichain Fungible Token (OFT) standard. By implementing the OFT standard, we can seamlessly move the $FDX token across different chains while maintaining the same level of security and decentralization. When FDX expands its presence beyond Base in the future, it will be a simple task to bridge $FDX over to continue providing incentives as well as utilities to our users on other chains. ## Vesting Transparency For complete transparency to the community, we are sharing the relevant locked / vesting transactions below: TBC * **POL in Aerodrome.Finance:** * **Seed Round** (6 month cliff, 18 months vesting): * **Team** (6 month cliff, 36 months vesting): # Other Platform Tokens There are a total of five platform-issued token at Flex Perpetuals: * [FLP](#flp) * [FDX](#fdx) * [esFDX](#esfdx) * [Flex Points (FP)](#flex-points-fp) * [Flex Trade Credits (FTC)](#flex-trade-credits-ftc) ## FLP FLP is a token users receive from depositing their assets into the FLP vault, whose assets act as the liquidity for leveraged traders at Flex Perpetuals. Each FLP token represents a share of the ownership of assets within the FLP vault. **Token Contract:** 0x6304CE3F4eF20EC0AaB3981d0B4428Beeb96c3aC **FLP Price Calculation:**\ $$FLP=Σ(AssetsinFLP∗AssetMarketPrice)+PnL$$ **How to obtain:** * Deposit USDC, cbBTC or WETH into the FLP vault **Staking Contract:** 0x053fa05d34c51afC5cb9f162Fab3fD675Ac06119\ **Utilities:** * Earn 45% of protocol revenue in the form of USDC when staked * Earn a share of esFDX token emission when staked * Accrue profits from acting as the counterparty for traders on Flex Perpetuals ## FDX When staked as stFDXLPthe Governance tokens of Flex Perpetuals. In addition to granting participation in the Governance process of the protocol, it also accrues value from the platform revenue **Token Contract:** 0xE248c0bCE837B8dFb21fdfa51Fb31D22fbbB4380 **How to obtain:** * Participate in Launch Event (TGE) * Purchase it from the FDX-ETH liquidity pool on Aerodrome.Finance * Vest esFDX **Staking Contract (stFDXLP):** 0xF00e53B7F3112834625f5AD5d47dA0e6E427E660\ **Utilities:** * Earn 30% share of protocol revenue in USDC when paired with ETH & staked as stFDXLP (shared with staked esFDX & FP). * Earn a share of esFDX community incentives token emissions when paired with ETH & staked as stFDXLP. * Earn Flex Points at 100% APR when paired with ETH and staked as stFDXLP. * Receive governance voting rights to help shape key decisions on the development of FDX exchange (only stFDXLP holders can vote. esFDX and FP have no voting power - coming soon...) * $FDX Token can simply be held as a speculitive play for long term price appreciation {% hint style="info" %} Unvested private sale FDX token (LFDX) can also be staked to earn a portion of the protocol revenue along with stFDXLP token. However, they **ARE NOT** eligible to earn esFDX rewards. \ **LFDX Token Contract:** 0x8ae234597bf9670aa854e3928a2b016AF2cbA33b {% endhint %} ## esFDX To protect FDX holders, esFDX (escrowed FDX) is distributed as incentive rewards to the stakers of stFDXLP & esFDX tokens and FLP tokens on FLEX. esFDX token is the escrowed version of the FDX token and cannot be traded. It must first be vested before it can be traded. However, the esFDX tokens possess the exact same utilities as FDX tokens. More details on the vesting mechanics & schedule of esFDX can be found [here.](/tokenomics/usdesfdx-vesting-schedule) **Token Contract:** 0x915595336Dad62fD1C3600193a16B3F44B44d27E **How to obtain:** * Stake esFDX, stFDXLP, or FLP * Earn via Trade to Earn program **Staking Contract:** 0xbD5E6070E1dd19Bd3af24A46caE2634dA9f22e5B\ **Utilities:**
* Earn 30% share of protocol revenue in the form of USDC when staked (shared with staked stFDXLP & Flex Points) * Earn a share of esFDX token emission when staked * Earn Flex Points at 100% APR when staked ## Flex Points (FP) FP aims to reward long term supporters of Flex Perpetuals without creating an inflation on the FDX tokens. The owner of the FP can stake them to earn a share of protocol revenue, which is split among staked esFDX & stFDXLP. **Token Contract:** 0x4A3AdB82b2BFcd46Ed47dAC3CB69fc357Bb399B3 **How to obtain:** * Stake esFDX or stFDXLP **Utilities:** * Earn 30% share of protocol revenue in the form of USDC when staked (shared with stFDXLP & staked esFDX) 1 FP = 1 esFDX in the calculation for revenue sharing. {% hint style="info" %} We convert the USD value of stFDXLP into equivalent $FDX quantity to calculate the appropriate Flex Point distribution. {% endhint %} {% hint style="info" %} If you unstake your esFDX or stFDXLP, your accrued Flex Points, equal to the ratio of your unstaking balance, will automatically be unstaked and burned. {% endhint %} ### Flex Trade Credits (FTC) For every $1 of trading volume, Flex Perpetuals users will be awarded at least 1 FTC (depending on the asset that they trade). Each week, esFDX & other Incentive rewards will be distributed pro-rata to traders based on their FTC amount. **Token Contract:** 0x78e82092F2E8a251a1Db7D98b60f8EAee1B1E4Af **How to obtain:** * Open a leveraged trading position at Flex Perpetuals (users will receive at least 1 FTC for every $1 worth of trading volume). **Utilities:** * Receive a share of esFDX rewards and other incentives Below is a table summarizing the FTC awarded to traders for $1 worth of trading volume for each respective asset: | Asset | # of FTC per $1 of Trading Volume | | ------------ | --------------------------------- | | BTC & ETH | 2.5 | | Other Crypto | 5.5 | | Commodity | 5.5 | | FX | 1.5 | {% hint style="info" %} Only trades that increase positions' size will be awarded FTC {% endhint %} ## Flex Perpetuals Revenue Share Model
## Flex Perpetuals Staking Flows
# $esFDX Vesting Schedule esFDX's holders can choose to vest their esFDX tokens to receive FDX. **esFDX vests linearly and will take one year** to fully convert to FDX tokens. * Users can claim vested esFDX at anytime * Users will be able to cancel vesting at anytime. Unvested esFDX tokens can be returned to staking for rewards **Example:** 1. Let's assume Alice has 100 esFDX & Alice chooses to vest her entire 100esFDX holdings. 2. After 26 weeks of vesting (0.5 year), Alice can now claim 50 FDX tokens while the remaining 50 esFDX remain to be converted. 3. At that time, if Alice chooses to cancel her vesting. She can claim the following: 1. 50 FDX tokens 2. 50 esFDX tokens will be returned to staking # Community Incentives Schedule The largest portion of the $FDX token allocation (45% or 2,200,000 tokens) will go to our community members. You can earn these incentives rewards by simply using Flex Perpetuals! ### Current Rewards Allocation | Allocation | Description | % | | ------------------------ | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | --- | | stFDXLP, esFDX stakers | In addition to the share of protocol revenue, stFDXLP and esFDX stakers will also earn esFDX incentive rewards. | 35% | | FLP stakers | In addition to the share of protocol revenue, FLP stakers will also earn esFDX incentive rewards. | 10% | | Flex Trade Credits (FTC) | For every $1 of trading volume, Flex Perpetuals traders will be awarded at least 1 FTC (depending on the asset that they trade). Each week, esFDX rewards will be distributed pro-rata to traders based on their FTC amount. | 50% | | Targeted Airdrops | Flex Perpetuals will use a small allocation of esFDX to airdrops targeting large traders on other Perpetuals Exchanges. | 2% | | Aerodrome Bribes | A portion of community incentives will be used as bribes on Aerodrome Finance to help incentivise our FDX/ETH LP. | 3% | ## Rewards Schedule Community incentives follows a decay emission schedule over 4 years (48 months).
# Trading Competition - Launch To celebrate the launch of Flex Perpetuals, we’re hosting **two week-long trading competitions** with a **total prize pool of $45,000+ in USDC & esFDX!** 🔥 **First competition kicks off on Feb 19th at 4PM UTC.**\ 📅 **The second competition date will be announced soon!** This prize pool is **on top of** our **Trade 2 Earn program (FTC)**, offering even more **esFDX incentives** for traders. Don’t miss out—**trade, earn, and win big!** 🚀 Check out the details here: [Trade 2 Earn](/trade-2-earn-points-system) ### 🏆 Competition Structure Each competition lasts 1 week, with two separate leaderboards: 1. **Notional Volume Leaderboard** – Rewards traders with the highest total trading volume. 2. **Best PnL % Leaderboard** – Rewards the traders with the highest percentage gains relative to their account size. **Competition 1: 📅 Week 1: Feb 19th (4 PM UTC) - Feb 26th (4 PM UTC)**\ 💰 Total Prize Pool: $7,500 USDC + 3,750 esFDX (\~$15K value) **Competition 2: 📅 Week 2: Dates TBC**\ 💰 Total Prize Pool: $7,500 USDC + 3,750 esFDX (\~$15K value) ### 🏅 Leaderboard Prizes #### 1️⃣ Notional Volume Leaderboard ($5,000 USDC + 2,500 esFDX per week) * Top 5 traders by total trading volume win: | Place | USDC Prize | esFDX Prize | | ------------ | ---------- | ----------- | | 🥇 1st Place | 2,500 | 1,250 | | 🥈 2nd Place | 1,500 | 750 | | 🥉 3rd Place | 500 | 250 | | 🏅 4th Place | 300 | 150 | | 🏅 5th Place | 200 | 100 | #### 2️⃣ Best PnL % Leaderboard ($2,500 USDC + 1,250 esFDX per week) * Top 4 traders with the highest % PnL win: | Place | USDC Prize | esFDX Prize | | ------------ | ---------- | ----------- | | 🥇 1st Place | 1,250 | 625 | | 🥈 2nd Place | 750 | 375 | | 🥉 3rd Place | 300 | 150 | | 🏅 4th Place | 200 | 100 | \ **🎉 Bonus Raffle:** Instead of a 5th place winner, we will randomly select one trader who traded at least $10K in volume during the week to win $200 USDC + 100 esFDX! ### How to Participate? 🔄 Trade on Flex Perpetuals during the competition period.\ 📊 Get ranked on one or both leaderboards (Notional Volume & % PnL).\ 💰 Win big! The more you trade, the higher your chances of winning! 📍 No sign-ups required – just trade & climb the ranks!\ 📊 Leaderboard updates will be shared throughout the competition. ***
### Competition Rules #### Competition Duration * Each competition runs for 1 week, from 4 PM UTC on start date to 4 PM UTC on end date. * You do not need to sign up – all trades on Flex Perpetuals during the competition period automatically count. #### Trading & Position Rules * Only positions opened after the competition period begins will count. Open trades from before the start do not qualify. * Profits are counted from all positions, including: * Fully closed positions * Partially closed positions * Open positions at the end of the competition (snapshot taken at 4 PM UTC on the final day) * PnL is calculated in USD, net of all trading fees. * PnL across all sub-accounts linked to a wallet will be combined. #### 🌟 PnL % Leaderboard Calculation The % Return will be calculated using: 🔢 % Return = (Total PnL) / (Adjusted Collateral Value) Where:\ 📈 Adjusted Collateral Value = Initial Collateral at the start of the competition + Any deposits made during the competition 💡 A minimum Adjusted Collateral Value of $100 is required to qualify for this category. #### ⚠️ Fair Play & Disqualification * Manipulation to influence leaderboard rankings will result in disqualification. * The Flex Perpetuals team reserves the right to disqualify any trader at their sole discretion if unfair trading activity is detected. # Based Trading Titans **One Month. $25K USDC + $25k in esFDX Bonuses.** **Trade. Climb. Conquer.** With the markets heating up, Flex is dropping its biggest on-chain competition to date — **‘Based Trading Titans’.** Over the course of four weeks, traders will battle it out for a share of **$25,000 USDC** and **$25,000 worth** **esFDX prizes**. With weekly spotlights on select assets and volume multipliers, this is your chance to win big on Flex.\ \ Leaderboard is live - ## 📅 Competition Timeline * **Start Date:** Thursday, 22nd May, 2025, at 00:01 UTC * **End Date:** Thursday, 19th June, 2025, at 00:01 UTC * **Duration:** 4 weeks ## 💰 Prize Pool Breakdown * **Total Potential Prize Pool:** $25,000 USDC + $25,000 of esFDX bonuses * **Guaranteed Prize Pool:** $15,000 USDC + $15,000 of esFDX bonuses * **Volume Milestone Bonuses:** An additional $1,250 USDC & esFDX will be unlocked each week if the total trading volume exceeds $150 million and a further $1,250 USDC & esFDX will be unlocked each week if the total trading volume exceeds $200 million, up to a maximum of $10,000 USDC. ## 🏅 Weekly Prizes (Per Week) **Guaranteed Base Weekly Prizes:** * 🥇 **Top Volume Trader:** $1,000 USDC + $1,000 of esFDX * 🥈 **2nd Volume Trader:** $600 USDC + $600 of esFDX * 🥉 **3rd Volume Trader:** $400 USDC + $400 of esFDX * 📈 **Top % PnL Trader:** $300 USDC + 300 of esFDX * 🎁 **Random Draw (for traders with >$1M volume):** $200 USDC + $200 of esFDX **Bonus Prizes (Unlocked if Total Platform Weekly Volume > $150M):** * 🥇 **Top Volume Trader:** +$600 USDC + $600 of esFDX * 🥈 **2nd Volume Trader:** +$275 USDC + $275 of esFDX * 🥉 **3rd Volume Trader:** +$175 USDC + $175 of esFDX * 📈 **Top % PnL Trader:** +$150 USDC + $150 of esFDX * 🎁 **Random Draw:** +$50 USDC + $50 of esFDX **Bonus Prizes (Unlocked if Total Platform Weekly Volume > $200M):** * 🥇 **Top Volume Trader:** +$600 USDC + $600 of esFDX * 🥈 **2nd Volume Trader:** +$275 USDC + $275 of esFDX * 🥉 **3rd Volume Trader:** +$175 USDC + $175 of esFDX * 📈 **Top % PnL Trader:** +$150 USDC + $150 of esFDX * 🎁 **Random Draw:** +$50 USDC + $50 of esFDX ## 🏆 Overall Competition Prizes (Combined performance over 4 weeks) * 🥇 **Top Overall Volume Trader:** $2,000 USD + $2,000 of esFDX * 🥈 **2nd Overall Volume Trader:** $1,250 USDC + $1,250 of esFDX * 🥉 **3rd Overall Volume Trader:** $750 USDC + $750 of esFDX * 📈 **Top Overall % PnL Trader:** $500 USDC + $500 of esFDX * 🌟 **Random Draw:** $500 USDC + $500 of esFDX ## ⚡ Weekly Asset Spotlights Each week, a specific asset will be in the spotlight, offering a **1.5x volume multiplier** for trades involving that asset. This means your trades on the featured asset will count 50% more towards the volume leaderboard. * **Week 1:** Solana (SOL) * **Week 2:** TBC * **Week 3:** TBC * **Week 4:** TBC Stay tuned to our channels for weekly announcements on the featured assets. ## 📈 Leaderboards Two leaderboards will run concurrently: 1. **Notional Volume Leaderboard:** Ranks traders based on total trading volume. 2. **Best % PnL Leaderboard:** Ranks traders based on the highest percentage gains relative to their account size. *Note: Traders can appear on both leaderboards and are eligible for prizes in both categories.* ## ✅ How to Participate 1. **Trade on Flex Perpetuals:** All trades during the competition period automatically count — no separate registration required. 2. **Climb the Leaderboards:** Engage in high-volume trading and aim for profitable strategies to rise in the rankings. 3. **Win Prizes:** Top traders in each category will receive USDC and esFDX rewards. ## 📜 Competition Rules * **Eligibility:** All users trading on Flex Perpetuals during the competition period. * **Trade Counting:** Only positions opened after the competition start time will be considered. * **PnL Calculation:** Includes all open, partially closed, and fully closed positions, calculated in USD net of fees. * **% PnL Calculation:**\ 1\. **% Return** = (Total PnL) / (Adjusted Collateral Value)\ 2\. **Adjusted Collateral Value** = Initial Collateral + Deposits during the competition\ **3. Minimum Adjusted Collateral Value to qualify: $100** * **Sub-Accounts:**\ 1\. Sub-accounts **can be used and will count** towards your notional volume total.\ 2\. **Hedging across sub-accounts is permitted** and considered a valid strategy. * **Fair Play:** Any attempts to manipulate trades, artificially inflate volume, or exploit platform mechanics will result in disqualification at the discretion of the Flex Perpetuals team. # Python SDK **Flex Perpetuals Python SDK is available here:**\ \ \ See README.md for Installation Instructions. # Gitbook **The Flex Perpetuals Public Gitbook is available here:**\