FAQ
Funding
What are funding payments and why are they important? Funding payments are a mechanism in perpetual futures trading that ensures the market price is anchored to the spot price. Understanding them is crucial for effective trading strategies.
How are funding payments settled in nftperp v2? In nftperp v2, funding payments are settled every hour. Unlike the previous version, funding is purely peer-to-peer, without an insurance fund's involvement, and is similar to funding in other centralized perpetual swaps.
How is the premium for funding payments calculated in nftperp v2? The premium is calculated as the difference between the mark price and the index price ().
How is the Funding payment for a specific position computed? The funding payment for a specific position is determined by multiplying the funding rate by the position size.
Who pays the funding in nftperp v2? Market Makers (DLOB + AMM) and traders are responsible for paying the funding in NFTPerp V2.
General
How does nftperp's hybrid system benefit traders? nftperp merges a decentralized limit order book (DLOB) with an automated market maker (AMM), combining the autonomy and fluid liquidity of AMM with the control and efficiency of a centralized limit order book (CLOB). This hybrid system is particularly effective for the unique challenges of NFT markets, offering a sophisticated trading experience.
How can I acquire ETH for trading? ETH can be purchased from cryptocurrency exchanges like Binance or Coinbase. You can then withdraw ETH to your MetaMask wallet.
What is the process for bridging WETH to Arbitrum? You can use the official Arbitrum bridge at bridge.arbitrum.io or alternative bridges accessible from the Arbitrum portal to bridge WETH to Arbitrum.
How do I connect my wallet to nftperp? Navigate to the nftperp trading page and select "Connect Wallet" on the top right side of the page to connect your MetaMask wallet.
How can I contribute to the liquidity of nftperp? You can deposit into liquidity pools on nftperp to earn yields on your contributions and enhance the ecosystem.
How do I close a position? To close a position, navigate to the 'My Positions' tab on the trading platform. You can close your position by clicking the "Close" button, which will realize your Profit and Loss (P&L). Remember to sign the transaction via your connected wallet.
What is the process for removing liquidity from nftperp? To remove liquidity, go to the "Liquidity" tab in the sidebar navigation. Choose the pair you are supporting, select 'Manage Liquidity', and then opt for the 'Remove Liquidity' tab. Enter the amount of WETH you wish to remove, either manually or by using the 'Max' button, and confirm the transaction with your wallet.
What types of orders can I place on nftperp? The platform supports various order types, including market, limit, and conditional orders, offering traders different strategies and control.
What are Limit Orders and how do they work in nftperp? Limit orders set a fixed price for buying or selling and are placed into the Decentralized Limit Order Book (DLOB). They await execution when intersected by a market order or another limit order at their specified price point. These orders are strictly on-chain, ensuring transparency and reliability.
What are Conditional Orders in nftperp and how do they function? Conditional orders in nftperp, such as Stop-Loss and Take-Profit orders, become active under specific market conditions. Stop-loss orders limit potential losses by executing trades at a pre-set trigger price if the market dips. Take-Profit Orders secure earnings by executing trades when the market value rises to a pre-set trigger price. These orders are executed on-chain by a network of keepers.
Governance
What role does nftperpDAO play in the nftperp ecosystem? nftperpDAO is responsible for the oversight and management of the nftperp protocol. It currently allows members to vote on adding or removing assets from the protocol, with plans to expand its capabilities in the future.
How does the nftperpDAO decision-making process work? Proposals, known as NIPs (nftperp Improvement Proposals), can be put forward by the nftperpDAO or Listing DAO council for community consideration. These proposals are open for community discussion and review, followed by a vote using a snapshot. A proposal requires a minimum quorum and majority threshold for approval.
Liquidations
How can liquidators identify if a position is liquidatable in nftperp? Liquidators can determine if a position is liquidatable by calling the isLiquidatable function, which requires the Automated Market Maker (AMM) address and the trader's address as inputs.
What is the process for liquidating a position in nftperp? To liquidate a position, liquidators use the liquidate function in the ClearingHouse contract, specifying the AMM, the size of the position to liquidate, the trader's address, and the margin in wei. This margin represents the ETH amount transferred from the liquidator's wallet to use as margin in the new position.
What options do liquidators have after overtaking a position? Once liquidators overtake a position, they can choose to hold it to maximize rewards or manage it as a normal position, including closing or adjusting it.
Mafia Nuts
What is the Mafia Nuts Collection and how is it distributed? The Mafia Nuts Collection is part of the nftperp ecosystem, with 67% of the collection minted by the community at no cost. 15% of the NFTs are reserved for future giveaways and trading competitions, 9% for liquidity rewards, 5% for partner teams, and 4% for the nftperp team and marketing.
What future benefits will Mafia Nuts holders receive on nftperp? Holders of Mafia Nuts NFTs will enjoy multiple benefits, including fee discounts, profile badges, exclusive merchandise, early access to new features on the nftperp platform, and more.
How can users prepare for future incentives associated with Mafia Nuts To prepare for future incentives, users should bridge their Mafia Nut to Arbitrum and stake their NFT in the dapp. Note that while staked, these NFTs cannot be sold on secondary markets, but they can be unstaked at any time.
Protocol
Who are Keepers and what is their role in executing Conditional Orders? Keepers are network participants who execute Conditional Orders once predefined conditions are met. They are compensated with a fee for their role in maintaining the system's efficiency and are considered a vital part of the nftperp ecosystem. Executors of trigger orders in nftperp earn a reward of 5 bps for each executed order without needing to be whitelisted.
How do trigger orders work in nftperp and how are they executed? Trigger orders in nftperp are active under specific conditions based on the side (LONG or SHORT) and whether they are take-profit orders. The validity of these orders is determined by comparing the mark price with the trigger price. To execute a trigger order, the closePositionKeeper function is used, requiring the AMM address and the ID of the trigger order.
How can new market makers get started on nftperp? New market makers can get started on nftperp by using the provided scripts and tools in the 'getting started' repo and the nftperp-trader library available in the npm store. These resources are designed to help market makers engage effectively in the paper trading deployment of NFTPerp. In v2, market makers in the limit order book receive a fee of 15 bps along with tokens for their market-making activities.
Other
Need help? If you need help with something, the best way to get in touch is by opening a ticket here.
Partnerships? Feel free to open a ticket here and tag @helmass in Discord with your request.
Found a bug? Please feel free to fill out this forum or open a ticket in discord.
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