Open Perp

The entry price of a perpetual is the oracle price S. You can open a perp position as long as collateral value is at least $10 and leverage is within restrictions.

For opening a perp position you can submit your order via either a limit or market order. You can choose to pay in either currency of the pool.

Opening leverage must be between 1x and 250x. After a position is open, it becomes liquidatable if effective leverage reaches 500x.

Perp Collateral Reserve

Perpetual futures reserve backing liquidity on the side that can owe the payout.

For a long perp, the pool reserves the underlying token quantity:

$$\text{reserved liquidity}_\text{long}=q_\text{base}$$

For a short perp, the pool reserves USDC equal to the position notional plus posted collateral:

$$\text{reserved liquidity}_\text{short} = \text{notional USD}+\text{posted collateral USD}$$

The short-side reserve increases when collateral is added and decreases when collateral is removed. This keeps the payout-side reserve aligned with the short position's live collateral.