# Polynomial Trade CEX like experience for perpetual futures without compromising security Polynomial trade is a decentralised derivative trading exchange powered by the Synthetix protocol on Optimism. The exchange allows leverage trading up to 50x with a faster and smoother UI and lower fees than other derivative exchanges.

## Create smart wallet and deposit into smart wallet Polynomial trade uses smart contract wallets to access the exchange. Click on create an account and create a Polynomial smart account. Read more on: [Smart Wallets](/trade/smart-wallets). After creating the smart wallet, the trader needs to deposit sUSD to the smart wallet. Complete the transaction and the deposit will be added to the SC wallet.

## Getting sUSD Polynomial trade is built on top of Synthetix derivatives and uses sUSD as a deposit asset. Traders can get the sUSD swapping from different aggregator protocol. If you don't have funds in Optimism, then follow the steps, 1. Bridge your assets through your fav bridges to Optimism * * [Bungee](https://www.bungee.exchange/) * * [Hop.Exchange](https://app.hop.exchange/send?token=USDC\&sourceNetwork=ethereum\&destNetwork=arbitrum) The transfer of assets may take a few minutes and will be deposited onto your Optimism network upon completion. 2. After bridging your ETH to sUSD. Swap using protocols like: 1inch, Odos, DefiLlama Swap. ## Add margin After adding funds to the smart wallet, traders can add [margin](#add-margin) to the respective markets. The minimum margin to start trading is $50, and no max limit exists.

Click on adjust the margin and add your sUSD to the margin to start trading. You can always add a margin later by clicking adjust margin.

## Open a position ### Video Tutorial {% embed url="" %} #### Place an order Use Long or Short according to your market view and open a position by entering the margin you want to use. Polynomial trade has different types of orders which are [**standard**](/trade/standard-order), [**limit**](/trading-guide/limit-orders), [**stop**](/trading-guide/stop-orders) and [**TP/SL**](/trading-guide/take-profit-stop-loss) order. Select the convenient type order depending on your strategy.

If it is still unclear how Long and Short trades work, you can refer to the [Basics](/trade/perp/basics-of-perp) section. Once the user has decided on the direction of their trade, they can enter the trading amount and choose the desired [leverage](/trade/perp/leverage). At this point, the fees and keeper deposit will be displayed, and the user can review the fees before opening the position. Clicking on either Long or Short will initiate the position and it will be visible in the position tab.

There is also a "[funding rate](/trade/perp/funding-rate)" that is deducted over time as fees. #### Expiry and Price impact Traders can set the expiry and price impact delta of a new position manually in the UI. It helps the traders to manage their position when there is a huge movement in the market. Click on the toggle next to the orders type and select the expiry of the Limit order and the Price impact delta for the order.

## Managing positions After opening the position, the trade comes on orders, and the trader can view the position status after the transaction is completed. All the unfilled orders will be kept in the orders tab until they get filled.

After opening the position, the trade comes on positions, and the trader can manage the trades on this tab. The trader can view the position size, open price, Liquidation price, and PnL on this tab.

If the trader opens another trade, then the exchange automatically averages both orders, recalculates the PnL and shows it in the position tab. Also, the history tab will allow the traders to view all the trades on the exchange made by the user.

## Expired Order Expired order is a order that has not been filled because high volatility in the market or has reached its expiry time.

After an order expires you can decide to: * Do nothing or cancel the order. * **`Retry`** the expired transaction, with a 1-click button to reproduce the transaction at market price. * Create a new order, so the expired order gets cancelled in the same transaction.
## **Closing / Reduce a trade position** To close a trade position, the user can click **`Close`** or use the TP/SL feature directly in the `Position` tab clicking **`Add`**. > Check how to add TP/SL to a position here: [Take Profit / Stop Loss](/trading-guide/take-profit-stop-loss#add-tp-sl-to-a-position).

When the user click **`Close`** a popup will appear and user can decide how much of that position close. Once transaction is made, the order will be closed or reduced and PnL will be realised according to the trade outcome.

The profit/loss will be credited to the wallet address after collecting all fees by exchange, and no fees will be deducted from the portfolio after the final transaction. Users can also close or reduce a position, opening a trade in the opposite direction using any type of order. ## **Liquidations** When the trader does not have enough funds to meet the margin requirement, which is the amount of collateral that the trader must keep on deposit in order to maintain their open positions. In this case, the exchange will automatically liquidate the trader's positions to bring their account back within the required margin.

The liquidation price will be shown in the positions tab and if you are using more than 5x leverage, then always try to check the asset underlying price. The more leverage you take, the more chances are there for liquidation due to the volatility in the assets. If there is any collateral remaining after deducting losses and fees, then the corresponding amount would be returned to your trading account. # Limit Orders What is it and How to place it A limit order is an instruction to buy or sell an asset at a specific price or a better one. Limit orders are often used by investors who want to control the price they pay for a security. They can also be used to set a maximum loss or to protect profits.

### Create a Limit order To place a Limit Order: * Select the **asset** to trade; * Select **`Long`** or **`Short`** to decide the side of the trade; * Choose the **`Limit`** order type; * Enter an **Collateral Amount**, if needed; * Input the **Limit Price** - set the max or min price at which you are willing to long or short; * Enter the position **Size** and **Leverage**; * Click on **`Long`** or **`Short`** to confirm.

Once the new limit order is created, it will appear under the `Orders` tab. Users can cancel the limit order at any point in time.

When the **price execution** reaches the **limit price**, the order will be executed, and your position will be opened.

{% hint style="info" %} In the case of a high price divergence (more than 2%) between Pyth and Chainlink, the execution price will be based on the Chainlink price. {% endhint %} {% hint style="info" %} After a conditional order is triggered, there is no guarantee of its successful execution. Factors such as liquidity constraints or network congestion can significantly affect the order's completion. With the Pyth prices the rate of successful execution increased. {% endhint %} # Stop Orders What is it and How to place it A stop (long) order is used to capitalize on an upward price movement or to enter a trade at a specific level. It is commonly used by traders who wish to buy an asset once its price surpasses a predetermined stop price. When the market price reaches or exceeds the stop price, the stop order is triggered, and the buy order is executed, allowing the trader to enter the market or capture potential gains.\ In a similar way, when a downward is expected is possible to place a stop (short) order in key prices and around resistances.

### Create a Stop order To place a Stop Order: * Select the **asset** to trade; * Select **`Long`** or **`Short`** to decide the side of the trade; * Choose the **`Stop`** order type; * Enter an **Collateral Amount**, if needed; * Input the **Stop Price** - set the max or min price at which you are willing to long or short; * Enter the position **Size** and **Leverage**; * Click on **`Long`** or **`Short`** to confirm.

Once the transaction is executed, the order will appear under the `Orders` tab. Users can cancel the stop order at any point in time.

When the **price** reaches the **stop price**, the order will be executed, and your position will be opened.

# Take Profit / Stop Loss Take Profit & Stop Loss Take profit and stop loss orders enable traders to set target profit levels and maximum acceptable loss levels. Take profit and stop-loss orders provide a level of automation and help traders stick to their predefined trading plans. ### Opening a position with TP/SL To allow traders to define both their target profit level and the maximum acceptable loss level, both orders can be placed simultaneously when entering a trade. 1. Decide the type of order you want to create between **`Standard`**, **`Limit`** or **`Stop`**; 2. Check the TP/SL box to abilitate it; 3. Enter the parameters to trigger TP and/or SL and click **`Long`** or **`Short`** button; {% hint style="info" %} Please note that fees associated with the Take Profit and Stop Loss orders will be deducted upon execution, when the specified price levels are triggered.\ **`Gain`** and **`Loss`** take into account the regular fees for the trades as well as the fees associated with creating the TP/SL orders. {% endhint %}

The TP/SL (and limit/stop type order) will be shown in the `Orders` tab, meanwhile the (standard) order executed by the keepers will be shown in the `Positions` tab;

When user opens a trade with **TP/SL** two different orders will be generated. * The new trade position * The TP/SL Both the orders generated have same size {% hint style="info" %} Note: When you create **TP/SL** with a new position, it is not shown in the `Position` tab, but in the `Order` tab. This because the TP/SL correspond to a specific size and not to that particular position. {% endhint %} ### Add TP/SL to a position It is possible to add a TP/SL to an entire existing position: 1. Click the **`Add`** button;

2. A popup will appear and you can decide the trigger price for **TP** and/or **SL** for the entire position; and click **`Confirm TP/SL`** {% hint style="info" %} **Remember**: fees associated with the Take Profit and Stop Loss orders will be deducted upon execution, when the specified price levels are triggered.\ **`Gain`** and **`Loss`** take into account the regular fees for the trades as well as the fees associated with creating the TP/SL orders. {% endhint %}

Once validate the transaction the TP/SL will be shown on `Order` tab and `Position` tab {% hint style="info" %} **TP/SL** is available in the position tab because it is related the whole position {% endhint %}

{% hint style="info" %} **The main difference between creating a TP/SL order while opening a trade and adding it later is related to their association with the position.** When TP/SL is established during the initial trade entry, it is linked to a specific trade size. In other words, the TP/SL is set based on the parameters defined at the time of opening the position. On the other hand, when TP/SL is added later, it is specifically assigned to an existing position. This means that the TP/SL order is tailored to the characteristics and requirements of that particular position. {% endhint %} ### Modify a TP/SL It is possible to modify a TP/SL to an existing position clicking the **"*****Edit*****"** button in the Position tab.

After clicking, the popup similar [#add-tp-sl-to-a-position](#add-tp-sl-to-a-position "mention") will appear. A transaction will exectute this new TP/SL and cancel the previous one. ### Cancel a TP/SL To cancel a TP/SL is enough to go on Orders tab and click **`Cancel`**

{% hint style="warning" %} It is important to note that while these orders can be effective risk management tools, they are not foolproof. In certain market conditions, such as during **high volatility** or low liquidity, the execution of these orders may differ from the intended price level. This is known as **slippage** and can result in **trade executions at slightly different prices**. **Traders should consider potential slippage and set their take profit and stop-loss levels accordingly to account for these factors.** **Important:** A reasonable buffer between the stop-loss level and the liquidation price, traders can enhance their chances of preventing liquidation events. {% endhint %} # FAQ Frequently Asked Questions ### Who provides liquidity for trades on Polynomial? Polynomial Trade is built on top of the Synthetix protocol, and trades on the platform are executed with SNX stakers acting as counterparties. Synthetix stakers receive fees from the platform for providing liquidity. ### **I** cannot see my funds in my smart wallet after closing a position. What should I do? After closing a position, your funds will not appear in your smart wallet but will be added to the margin of the specific asset you traded. To withdraw the funds from the margin to your smart wallet, navigate to your **`Smart Wallet`** and click on **`Adjust`** for the market with margin. From there, you can choose to **`Withdraw`** your amount. You can also add the funds to different margins from your smart wallet or withdraw them to your MetaMask account.\ \ Please note that if you withdraw margin, your limit order will not be executed.

Follow the instructions above to withdraw sUSD to your smart wallet. ### Can't I open a position? In order to open a trade, the user must have a **minimum of $50 in margin**. If the required amount is not available, users will need to add more sUSD to their margin to open a trade. ### Why can't close my order? You won't be able to close your trade if your margin is below $50. In order to meet the minimum margin requirement and close an active position, you'll need to add more margin. Keep in mind that there is a fee between $0 and $4 for the network (keeper bots), which will be deducted from your margin. If you don't have enough margin remaining, you'll need to add more funds in order to place any new trades. ### Why my position expired? * **Standard Order:** When the price of an asset is highly volatile, it can be difficult for a keeper to fill an order at the ideal market price. In such situations, rather than filling the order at an unfavourable price, the order may expire. * **Limit Order:** To be filled, it must remain within the range of the "Trigger Price" and "Limit Price" for a brief period of time. If this range is not reached before the "Limit Order Expiry" period, the order will expire. More details can be find here: [Orders](/trade/perp/orders) ### Order expire, what should i do now? As reported on [Trading Guide](/trading-guide#expired-order), after an order expires you can decide to: * Do nothing or cancel the order. Your order tab will be clean again. * **`Retry`** the expired transaction, with a 1-click button to reproduce the transaction at market price. * Create a new order, so the expired order gets cancelled in the same transaction.
### Why didn't my limit order go through? If the market moves too quickly and the limit price is not reached, the order may not be executed, and it will become an invalid order. In this case, the trader may need to adjust their trading strategy or intervene manually to manage their position. ### I had accumulated funding, but now it shows $0 Whenever you carry out a transaction (such as depositing, withdrawing or making a new trade), the funding amount is added to your margin. If the accumulated funding rate is positive, your margin will increase, and if it is negative, your margin will decrease. After any of these operations, your funding will be reset to $0. ### How many fee do I pay? Standar Order: * **2/6-10 bps**, Maker/Taker fees based on the market skew; * **Keeper Deposit**, fee given to the keeper bots to execute the trade, based on the current gas price. Limit Order: * **2/6-10 bps**, Maker/Taker fees based on the market skew; * **Keeper Deposit**, fee given to the keeper bots to execute the trade, based on the current gas price; * **Limit Commit Deposit** (0.03%); * **Limit Keeper Deposit** ($1.50). More info about fees [here](/trade/fees). ### My RPC is slow and doesn't work It is available a complete guide on how to setup and update an RPC.


/pages/hYNUGBNaexE3xqkY8MFg	/pages/hYNUGBNaexE3xqkY8MFg

### Liquidation & Keeper fees When an account is close to being liquidated, it must be flagged. This flagging process requires gas. The cost for this gas is taken from the funds (margin) in your account. It's advised to be cautious when trading with high leverage while using the maximum margin of your account. This is particularly important for smaller accounts (less than $250). Why? Because trading in this manner could lead to a liquidation price that is different from what is displayed in the User Interface (UI). **How Does a Gas Spike Affect Liquidation Price?** During periods of high network activity, gas prices can spike. If the flagging process for your account occurs during one of these spikes, the cost of gas will be higher than normal. This increased cost will consume more of your margin, which in turn can affect the liquidation price of your account. # Soon We will share more info soon! 👀 # Perp Perpetual futures, also known as perpetual swaps, are a type of derivative contract that allows traders to speculate on the price of an underlying asset without an expiration date. This means that the contract can be held indefinitely, with the trader choosing to either hold the position or close it out at any time. #### To read more on the basics of perp trading. {% content-ref url="/pages/z0fF3hSOXTxM5mQU3Pur" %} [Basics of perp](/trade/perp/basics-of-perp) {% endcontent-ref %} #### To read more on the funding rate. {% content-ref url="/pages/oqrAr6gNz6mFR4vKddMu" %} [Funding rate](/trade/perp/funding-rate) {% endcontent-ref %} #### to read more different types of orders {% content-ref url="/pages/0BdFuk6w3k6N3dA4l6cC" %} [Orders](/trade/perp/orders) {% endcontent-ref %} #### To read more on the leverage. {% content-ref url="/pages/DGkUQhwvg9tHdTrVC0qh" %} [Leverage](/trade/perp/leverage) {% endcontent-ref %} #### To read more on the Jargon. {% content-ref url="/pages/lx0lh7zStC62oIDugK4w" %} [Jargon](/trade/perp/jargon) {% endcontent-ref %} # Basics of perp Perpetual futures are similar to traditional futures contracts, but they do not have a fixed expiration date and instead use a funding mechanism to keep the contract price aligned with the underlying spot price. ### Long Position

A long position in a perpetual futures contract is a position that a trader takes, expecting the price of the underlying asset to rise. This means that the trader is buying the contract with the expectation that they will be able to sell it at a higher price in the future, resulting in a profit. In a long position, the trader is said to be "long the contract" and is essentially betting on increasing the underlying asset's price. If the price does indeed rise, the trader can close out their position by selling the contract at a higher price than they bought it for, resulting in a profit. If the price falls instead, the trader will incur a loss. ### Short Position

A short position in a perpetual futures contract is a position that a trader takes expecting the underlying asset's price to fall. This means that the trader is selling the contract with the expectation that they will be able to buy it back at a lower price in the future, resulting in a profit. In a short position, the trader is said to be "short the contract" and is essentially betting on decreasing the underlying asset's price. If the price does indeed fall, the trader can close out their position by buying the contract back at a lower price than they sold it for, resulting in a profit. If the price rises instead, the trader will incur a loss. # Funding rate

The funding rate in a perpetual futures contract is the fee that is paid by one side of the trade to the other in order to keep the contract price aligned with the underlying spot price. This fee is calculated and paid at regular intervals, typically every eight hours, based on the difference between the futures price and the spot price. If the futures price is higher than the spot price, traders who are long the contract (i.e., expecting the price to rise) will be required to pay a funding fee to traders who are short the contract (i.e., expecting the price to fall). This fee is designed to bring the futures price down and align it with the spot price, so that traders on both sides of the trade have an equal chance of making a profit. If the futures price is lower than the spot price, the opposite will be true and short traders will be required to pay a funding fee to long traders. This fee is designed to bring the futures price up and align it with the spot price, so that traders on both sides of the trade have an equal chance of making a profit. The funding rate is an important aspect of perpetual futures contracts, as it helps to keep the contract price aligned with the underlying spot price and avoids the need for an expiration date. This allows traders to hold the position indefinitely and take advantage of price movements in the underlying asset without the pressure of a deadline. # Funding On Polynomial A new approach ### Funding Rate Velocity Polynomial uses a model called "Funding Rate Velocity" which represents a new approach to compute funding on the blockchain. This model continuously changes funding rates on a block-by-block basis, based on uncorrected position imbalances. As a result, funding rates vary while smoothing out funding rate trajectories. For more information on this model, please refer to: . ### How it works Funding is not directly proportional to the skew of long and short positions. Instead, the skew is a parameter used to calculate the funding rate velocity. **📈 If the skew is long, funding increases.** **📉 If the skew is short, funding decreases.** **⚖️ If the skew is neutral, funding remains the same.** This means that if a large number of big traders suddenly start buying or selling, the funding you have to pay (or receive) will not change immediately, but it may change later if the trend continues. Additionally, you may have funding to pay (or receive) even if the number of buyers and sellers are generally equal (neutral skew). ### New Opportunity The new on-chain funding calculation mechanism offers new opportunities and earning strategies for Polynomial users.\ You can read more about the [**funding rate arbitrage**](/strategies-and-tools/funding-rate-arbitrage-101) strategy [here](/strategies-and-tools/funding-rate-arbitrage-101). # Orders The order types used in Synthetix perp v2 are Delayed Orders. All polynomial perp exchange processes are carried out through these orders. Delayed orders are similar to next-price orders, but with a time delay. Instead of executing an asynchronous 'next-price' order after a semi-arbitrary Chainlink price update, we allow the executor (trader or keeper) to fill the order after a specified amount of time has passed, in addition to a price update. For instance, if the specified delay is 30 seconds and a price update occurs 10 seconds after the order submission, a keeper can still execute the order, or they can wait for the 30 seconds delay to pass before executing the order. {% hint style="success" %} * Front running risk is eliminated * Reduced fee {% endhint %} **To read more on orders:** {% embed url="" %} {% content-ref url="/pages/PpjFNX8TV0mH2JlaeC4J" %} [Trading Guide](/trading-guide) {% endcontent-ref %} {% content-ref url="/pages/xhl0vdfyQVJqzxv8Bq1i" %} [Standard Order](/trade/standard-order) {% endcontent-ref %} {% content-ref url="/pages/6aEDtOxp9GXtIipOmdO8" %} [Advanced Order v2](/trade/advanced-order-v2) {% endcontent-ref %}


/pages/PpjFNX8TV0mH2JlaeC4J
/pages/xhl0vdfyQVJqzxv8Bq1i
/pages/6aEDtOxp9GXtIipOmdO8

# Leverage {% hint style="warning" %} High leverage always kills the position. always trade safely and position yourself to avoid Liquidation. {% endhint %}

Leverage in perpetual futures refers to the use of borrowed capital to increase the potential return on investment. In the context of perpetual futures contracts, leverage allows traders to enter into larger positions than they would be able to with the same amount of capital. For example, if a trader has $1,000 of capital and the perpetual futures contract they are trading has a leverage ratio of 10:1, they will be able to enter a position worth $10,000. This allows the trader to amplify their potential returns, as a 10% move in the price of the underlying asset would result in a 100% return on the trade. Leverage can be beneficial for traders who expect the price of the underlying asset to move significantly, as it allows them to amplify their potential returns. However, leverage can also increase risk, as it amplifies potential losses as well. If the price of the underlying asset moves in the opposite direction from what the trader expects, their losses will be magnified by the amount of leverage they are using. For this reason, it is important for traders to use leverage carefully and manage their risk effectively. This may involve setting stop-loss orders to limit potential losses or using risk management tools like position sizing to ensure that their exposure to risk is within their tolerance levels. {% hint style="info" %} * Max leverage on the exchange is limited to 50x * Users can use the slider bar to set the leverage {% endhint %} # Liquidation liquidation refers to the process of selling off an investor's assets to repay their debts or obligations. In the context of leveraged trading, liquidation usually happens when a trader's position falls below the required margin level. Leverage allows traders to increase their buying power and amplify potential profits. However, it also exposes them to higher risks since they need to maintain a certain amount of **collateral** in their account to cover potential losses. If the value of their position drops too much, their margin balance will also decrease, potentially leading to a liquidation event. When a trader's **margin balance** falls below the required level, the liquidator part will issue a margin call, requesting that the trader deposit additional funds to maintain their position. If the trader fails to meet this requirement, the liquidator will start the liquidation process by selling off the trader's assets to repay the outstanding debt. The liquidation process can be triggered automatically or manually, depending on the platform and the trader's margin requirements. Usually, liquidated users are also charged additional fees or penalties for liquidation events. One of the main risks of liquidation is that it can lead to significant losses for the trader. When the liquidator sells off the trader's assets, it may not be able to achieve the best price, resulting in a loss of value. Furthermore, if the liquidation process is triggered during a volatile market period, the losses may be even greater, as prices can fluctuate rapidly. To **minimize the risk of liquidation**, traders can take several measures, such as: 1. **Setting appropriate stop-loss orders**: These are automated instructions that will trigger a sale of a position if its value falls below a certain level, helping to limit losses and reduce the likelihood of liquidation (coming soon). 2. **Maintaining a sufficient margin balance**: Traders should always ensure that they have enough collateral in their account to cover potential losses and meet margin requirements. 3. **Diversifying their portfolio**: By spreading their investments across different assets or markets, traders can reduce their overall risk exposure and minimize the impact of any single asset's price movements. 4. **Staying informed** about market conditions: By keeping up-to-date with the latest news and trends, traders can make informed decisions and adjust their positions as necessary to avoid liquidation. # Jargon

Term	Detail/Meaning
Price	The price is tracked in real-time from CoinGecko. This value may differ from the actual oracle price used by Polynomial.
24-hr Change	This refers to the change in price of the underlying asset over the last 24 hours. The value can be positive or negative, depending on the asset's price change.
24-hr Volume	This represents the notional volume traded on Polynomial over the past 24 hours. The total volume of the Synthetix protocol will be different since other protocols are built on top of it.
24-hr Trades	This is the number of trades (open or close) executed on Polynomial during the last 24 hours.
Open Interest	In perpetual futures, open interest refers to the total number of outstanding contracts in a particular market. It measures the total number of contracts that have been entered into but not yet closed out or settled.
Unrealized P&L	This is the potential profit or loss that would occur if a position were closed at the current market price.
Realized P&L	This is based on the difference between the entry price and close price of a position. Trading fees and funding fees are also included in the realized P&L.
Collateral / Margin	Amount of an asset required to maintain a leveraged position. On Polynomial the collateral is the stable-coin sUSD
Liquidation	Process of selling off a trader's assets to repay outstanding debts or obligations when their margin balance falls below the required level.
Initial Margin	This refers to the amount of money required to be deposited to open or maintain a leveraged position.
Keeper Deposit	This is the deposit required to run a keeper bot, which is used for delayed and off-chain orders. These orders are executed later by an entity when the timer expires and the order becomes eligible for execution.
Funding Rate	The funding rate is the periodic fee paid between long and short positions to ensure the contract's price aligns with the underlying asset.

# Smart Wallets A smart contract wallet is a wallet managed by a contract account instead of an EOA (Externally Owned Account). A smart contract wallet or a programmable wallet is a digital wallet governed by predefined rules programmed into a smart contract. This type of wallet operates on a blockchain platform, which makes it secure, transparent, and immutable. ## Why Polynomial uses smart wallet A smart contract wallet can potentially help polynomial trade in several ways: **Security:** A smart contract wallet can offer a higher level of security than a traditional wallet. A smart contract wallet is programmed to execute transactions automatically according to pre-defined rules, making it resistant to hacking or other security breaches. **Advanced orders:** Smart contract wallets can help Polynomial trade to provide advanced orders like limit orders, stop loss orders, SL, TP, and more. The possibilities are endless. **Transparency:** The use of smart contract wallets can increase transparency in the perp exchange, as all transactions are recorded on the blockchain and can be easily audited. This can help build trust among users and increase confidence in the platform. Overall, a smart contract wallet can help improve the security, efficiency, and transparency of Polynomial trade, leading to a better user experience and increased adoption of the platform. ## Managing smart wallet ### Create Smart wallet Users need to create a smart wallet to start trading in Polynomial Trade. Click on [Polynomial Trade](https://trade.polynomial.fi/) to create one.

Click on Polynomial Wallet and complete the transaction. The Smart is created, and you are ready to use Polynomial Trade. ### Add funds to the Smart Wallet To add funds to the Smart Wallet, the user must have sUSD. If not, you can swap it from one of the following aggregator: * [1inch](https://app.1inch.io/); * [Odos](https://app.odos.xyz/).

After getting sUSD, click on Smart wallet and enter the amount you want to deposit into the Smart wallet from your wallet.

After completing the transaction, the amount will be credited to the Smart wallet and reflected in the sUSD balance. # Standard Order A market order is executed at the current market price as quickly as possible when a user places the order. Since Polynomial Trade is built on top of Synthetix perps, it [Delayed off-chain orders](/trade/perp/orders) by default. The order will be placed directly after the trader places it, and a keeper bot will execute it.

# Advanced Order v2 The integration of advanced orders on Polynomial is greatly enhancing the trading capabilities and strategies accessible to traders. ## What's new & how it works? {% hint style="success" %} With the integration of **Pyth price** **for the execution process**, transactions will be checked and executed **more quickly**. This approach allows users to obtain the **best possible price** and mitigate any risks associated with volatile markets. {% endhint %} {% hint style="info" %} After a conditional order is triggered, there is no **guarantee** of its successful execution. Factors such as liquidity constraints or network congestion can significantly affect the order's completion. **With the Pyth prices the rate of successful execution increased.** Here are a few situations, including but not limited to: * The execution price did not reach the specified price. * The trigger price was reached but remained at that level for an insufficient duration to trigger execution. * No keeper accepted the order for execution. {% endhint %} ### Limit/Stop orders Traders can choose two types of Advanced orders when opening a trade: * Limit * Stop

There are different steps that take place behind the scenes when a user wants to create a limit/stop order: * The user decides on all the parameters for the order. * Once the limit/stop order is created, the limit/stop price (trigger price) is compared with the on real time with the price feed from Pyth (execution price);

* When the execution price reaches the trigger price, the limit/stop order is converted into a delayed order and executed by the keepers.

The execution of these orders requires Limit Fees, which have decreased by approximately 60% after the Badrock Update. For more detailed information, please refer to the following page: [Fees](/trade/fees#fees-for-limit-stop-orders)

{% hint style="success" %} **Note:** that fees associated with the Take Profit and Stop Loss orders will be deducted upon execution, when the specified price levels are triggered. {% endhint %} **Please note:** that fees associated with the Take Profit and Stop Loss orders will be deducted upon execution, when the specified price levels are triggered. ### Take Profit / Stop Loss Orders There is the option to add a TP and/or SL order when creating a new position or later. Users can choose to add either one or both of these orders based on their preference and trading strategy. To create a TP/SL with a new position, users need to enable the toggle.

{% hint style="info" %} **`Gain`** and **`Loss`** take into account the regular fees for the trades as well as the fees associated with creating the TP/SL orders. {% endhint %} Once the TP/SL order is created, it will be visible just in the **`Orders`** tab.

For an already open position, it is possible to add the TP/SL order by clicking the Add button in the **`Position`** tab:

TP/SL will be visible both in the **`Position`** tab alongside the corresponding position and in the **`Orders`** tab. {% hint style="info" %} **The main difference between creating a TP/SL order while opening a trade and adding it later is related to their association with the position.** When TP/SL is established during the initial trade entry, it is linked to a specific trade size. In other words, the TP/SL is set based on the parameters defined at the time of opening the position. On the other hand, when TP/SL is added later, it is specifically assigned to an existing position. This means that the TP/SL order is tailored to the characteristics and requirements of that particular position. {% endhint %} {% hint style="info" %} In the case of a high price divergence (more than 2%) between Pyth and Chainlink, the execution price will be based on the Chainlink price. {% endhint %} {% hint style="info" %} It is important to note that while these orders can be effective risk management tools, they are not foolproof. In certain market conditions, such as during **high volatility** or low liquidity, the execution of these orders may differ from the intended price level. This is known as **slippage** and can result in **trade executions at slightly different prices**. **Traders should consider potential slippage and set their take profit and stop-loss levels accordingly to account for these factors.** **Important:** A reasonable buffer between the stop-loss level and the liquidation price, traders can enhance their chances of preventing liquidation events. {% endhint %} ### Closing a Position To close a trade position with a TP/SL order, the process is the same as well as you want to add it later. Users can simply click the **`Add`** button in the `Position` tab to set the trigger prices for the closure. > Check how to add TP/SL to a position here: [Take Profit / Stop Loss](/trading-guide/take-profit-stop-loss#add-tp-sl-to-a-position).


/pages/XvbIbYQrsmhYQXr0jYqy
/pages/qJOdyK30MZd3XCJqMdMK
/pages/urpk9xgp2rqSRJRTPn1m

* [Limit Orders](/trading-guide/limit-orders); * [Stop Orders](/trading-guide/stop-orders); * [Take Profit / Stop Loss](/trading-guide/take-profit-stop-loss); # Fees ## Fees for standard order Polynomial trade charges 0 fees on standard orders. You'll get the exact same price trading through Polynomial trade as what you'd get trading through the perps v2 contracts directly. **Keeper deposit:** Dynamic fee given to the keeper bots to execute the trade (from 0$ to 10$) **Fees:** 2/6-10 bps based on the market skew.

{% hint style="info" %} We add our referral code to Synthetix perps, though, so they will send us part of the fee they earn for revenue sharing. This is not an extra fee, you'd be charged the same fee anyway, but now a small part of it is shared with Polynomial. {% endhint %} ## Fees for limit/stop orders Apart from the standard fees from Synthetix, Polynomial charges around $1.25 fixed cost + 3bps of notional size is the total fee for limit/stop orders. **Keeper deposit:** Dynamic fee given to the keeper bots to execute the trade (from 0$ to 10$). **Fees:** 2/6-10 bps based on the market skew. **Limit keeper deposit (Charged by Polynomial):** Fixed fee around $1.25 (depends no the network congestion). **Fees:** 3bps of notional size. > **The fees are only charged when the order is executed finally.** # Optimism Bedrock A New Era for Optimism Bedrock, the first official release of the OP Stack, a collection of modular components that are freely available and open-source, serving as the backbone of Optimism.\ The [Optimism Bedrock documentation](https://community.optimism.io/docs/developers/bedrock/explainer/?ref=blog.synthetix.io#improved-node-performance) provide a concise overview of the notable enhancements offered by this release: * ⛽️ **Reduced gas fees:** Bedrock uses an optimized data compression strategy, resulting in a substantial reduction in transaction costs. In addition, it eliminates all gas costs associated with EVM execution when submitting data to Layer 1 (L1), cutting fees by an extra 10%.\ \ With this upgrade, users can enjoy lower transaction costs, enabling a more cost-effective trading and improving the overall affordability of participating in the **Polynomial Trade ecosystem**.\ \ With lower transaction costs, the required deposit for keepers on Polynomial Trade will be reduced, making it one of the most cost-effective options available in the decentralized finance (DeFi) space.
* **⚡️ Faster order confirmation:** this update has brought a significant improvement. Optimism's increased scalability and efficiency reduces order completion time on Polynomial Trade to less than 3 seconds. Before Bedrock, the average order completion time on the platform was around 13-15 seconds.

Scenario	Sub-scenario	Average Entry Price
New position opened		AvgEntryPrice = TradePrice
New trade for an existing position	Side changed, i.e. long became short or short became long	AvgEntryPrice = TradePrice
	Size reduced, i.e. long reduces in size but remains long, or, short reduces in size but remains short	AvgEntryPrice = LastAvgEntryPrice
	Size increased, i.e. long increase in size but remains long, or, short increases in size but remains short	AvgEntryPrice = (PreviousSize LastAvgEntryPrice + TradedSize * TradePrice) / NewSize*

**P.S.: Fees is not considered while calculating average entry price of positions, total fees for a position is shown separately** 2. **Realised Profit and Loss calculation for trades** | Scenario | Sub-scenario | Realised Pnl | | ---------------------------------- | ----------------------------------------------------------------------------------------------------------- | ------------------------------------------------------------------------------------------------------ | | New position opened | | Realised Pnl = 0 | | New trade for an existing position | Side changed, i.e. long became short or short became long |

Realised Pnl = Pnl for the side which was closed

Unrealised Pnl for position is set to 0

| | | Size reduced, i.e. long reduces in size but remains long, or, short reduces in size but remains short | Realised Pnl = (InitialSize - FinalSize) \* (TradePrice - LastAvgEntryPrice) | | | Size increased, i.e. long increases in size but remains long, or, short increases in size but remains short | Realised Pnl = 0 | 3. **Realised funding calculation for trades** | Scenario | Sub-scenario | Realised funding | | ---------------------------------- | ----------------------------------------------------------------------------------------------------------- | ----------------------------------------------------------------------------------------------------------------------------------- | | New position opened | | Realised funding = 0 | | New trade for an existing position | Side changed, i.e. long became short or short became long |

Realised funding = Funding accumulated since the last trade

Unrealised funding for corresponding position is set to 0

| | | Size reduced, i.e. long reduces in size but remains long, or, short reduces in size but remains short |

Realised funding = Funding accumulated since last trade

Unrealised funding for corresponding position is set to 0

| | | Size increased, i.e. long increases in size but remains long, or, short increases in size but remains short |

Realised funding = Funding accumulated since last trade

Unrealised funding for corresponding position is set to 0

| 4. **Fees calculation for orders**\ The fee displayed for orders covers the total fee incurred from placing the order to creating the position (There is a delay between aforementioned events due to delayed order mechanism of Synthetix) | Type of order | Fees calculation | | -------------- | ---------------------------------------------------- | | Standard order | Fees = keeper fee + execution fee | | Limit order | Fees = limit order fees + keeper fee + execution fee | 5. **Unrealised funding calculation for positions** Funding shown in positions tab is the unrealised funding accrued for the position since the last trade placed by the user. \ \ P.S.: There is a cron which updates the unrealised funding for a position every 3 minutes, so the unrealised funding shown is not always accurate. 6. **Realised Pnl calculation for liquidations** Realised Pnl for a liquidation can be seen in the **`History`** tab. A new trade is created with side field set to **Liquidation.** Realised pnl for a liquidation trade is set to the total margin present in the market when the position was liquidated. # 1-Click Funding Arbitrage(beta) Funding Rate Arbitrage Strategy Funding rate arbitrage is a trading **strategy** that capitalizes on variations in funding rates across diverse markets. The primary focus of this approach is to maintain a delta-neutral position, ensuring a balanced overall exposure to market direction. By leveraging these differences, traders aim to seize profitable opportunities in the financial landscape.\ \ Polynomial is set to introduce Funding Arbitrage (beta), an innovative product enabling users to generate yields by simultaneously longing and shorting the same asset on two distinct platforms. This unique offering opens up new possibilities for traders seeking yield opportunities in the market. ### How does it work? {% content-ref url="/pages/NyWYyDcs6iYjauKY6Ma2" %} [Guide](/strategies-and-tools/1-click-funding-arbitrage-beta/guide) {% endcontent-ref %} {% content-ref url="/pages/nDWqG4LAFY3NZ9kNbw1N" %} [FAQ Funding Arbitrage](/strategies-and-tools/1-click-funding-arbitrage-beta/faq-funding-arbitrage) {% endcontent-ref %} **If you have any other strategies in mind or suggestions, please feel free to share and discuss them on** [**Discord**](https://discord.com/invite/polynomial). # Guide Funding Arbitrage Guide ### How does it work? Funding Arbitrage works with just one click, allowing users to open a long position on Aave and a short position on Polynomial simultaneously. This dynamic creates an opportunity to generate yields by capitalizing on the discrepancy between interest and funding rates on the two platforms. #### Step 0: Before to start Check the funding rate value on the dashboard. Funding Arbitrage v1 currently supports shorting ETH on Polynomial and longing on Aave. To ensure a positive yield, the funding rate must be positive. #### Step 1: Fund your SW After connecting your wallet, deposit sUSD into the Smart Wallet. #### Step 2: Managing Risk With your funds in place, you can now choose the margin amount and leverage. The leverage is capped at x5 since Funding Arbitrage is built on top of Aave. {% hint style="info" %} With an initial deposit of $1,000, users can potentially borrow up to $5,000.\ \ Aave's liquidation price is calculated differently from Polynomial as it employs a Loan To Value (LTV) approach, dividing the loan amount by the value of the collateral.\ \ **Max** **LTV sUSD:** 80%\ **Liquidation threshold:** 82.5% {% endhint %} #### Step 3: Start Once all parameters are set, users can open trades with a single click, resulting in two simultaneous actions: * **Short ETH:** A short position on Polynomial Trade is initiated, utilizing a portion of the initial margin. * **Long ETH:** Creating a long position involves three steps: 1. The remaining sUSD is used for a flash loan on Aave to borrow the necessary amount of sUSD; 2. The borrowed sUSD is then swapped for ETH; 3. The ETH is deposited on Aave, and sUSD is borrowed to repay the flash loan. After opening positions, users can track different information. * **Polynomial:** Funding Rate, Funding Velocity, OI * **Aave:** Supply and Borrow APR & Size Every position shows also liquidation price, PnL and other key metrics. # FAQ Funding Arbitrage Frequently Asked Questions ### My estimated APY changed, why? The estimated APY can change due to various factors, including fluctuating funding rates and changes in Supply and Borrow APR. As these variables are subject to time-dependent adjustments, the displayed estimated APY on the user interface may vary accordingly. ### Can i close just one position? In this strategy, partial position closure is not permitted. Only full position closure is allowed to maintain delta neutrality, ensuring that both the opening and closing actions occur simultaneously. ### Which token do you support for the strategy? Currently, FRAS supports only ETH as a token during its beta testing phase. However, based on community feedback and demand, additional tokens and features may be considered for future implementation. ### Can't find my margin/funds? When closing the Funding Arbitrage position, the margin/funds used to open the short position on Polynomial Trade will be available in the ETH margin balance. The implementation of the [**Polynomial Wallet** ](https://trade.polynomial.fi/)makes it easier to track and understand the distribution of funds. *Users located in prohibited countries are not permitted to engage in trading activities.* # Funding Rate Arbitrage 101 Let's discuss the **funding rate arbitrage** strategy. Funding rate arbitrage is a trading strategy that takes advantage of the differences in funding rates between different markets. The key point of this strategy is to maintain a delta-neutral position, which means balancing the overall directional exposure of the trader's positions. Here is a more detailed explanation. ### How does it work? 1. **Identifying markets with high funding rates:** Identify markets with high funding rates: The first step is to find markets with significantly positive or negative funding rates. These are markets where the cost of holding a position is either paid by long positions or short positions. An easy view of all polynomial's markets can be found here: [**https://trade.polynomial.fi/markets**](https://trade.polynomial.fi/markets).\ **Example 1:** Suppose we find a good opportunity in the DOGE market with a funding rate of approximately +0.01% per hour. Since positive funding means that short positions are paid by long positions, we will take a short position in this case.

2. **Finding another platform for opposite position:** To take advantage of the funding rate discrepancy and achieve delta neutrality, you need to find a platform where you can open a position in the **opposite direction** with a favourable funding rate.\ **Example 2:** On Binance, we discover that the DOGE perpetual future has a funding rate of -0.016% over 8 hours. To make a fair comparison, we convert it to an hourly rate by dividing it by 8, resulting in a funding rate of -0.002% per hour. 3. **Opening (long-short) positions:** Once you have identified the markets and platforms, you open both long and short positions at the same time. This allows you to be **delta neutral** and limits your exposure to volatile assets while earning the funding rate.\ **Example 3a:** we can open a **short** position on DOGE on Polynomial with a funding rate of +0.01% per hour. At the same time, we can open a **long** position on DOGE on Binance with a funding rate of -0.002% per hour.\ **Example 3b:** since we are shorting the asset in the futures market on Polynomial by selling a DOGE contract, we can simultaneously buy the same asset in the spot market instead.
4. **Farming the funding rate:** By holding these positions open during the funding period, you earn the funding rate as profit. The longer you hold the positions, the more funding rate you accumulate.\ **Example 4a**: If you hold the positions for one day during the funding period, you would earn a net gain of 0.24% on Polynomial (0.01% multiplied by 24 hours) and a net gain of 0.048% on Binance.\ **Example 4b**: If the funding period lasts for one day, holding the positions for that duration would result in a net gain of 0.24% on Polynomial. Additionally, you can use the spot position on Polynomial to earn additional rewards, such as lending or staking ETH.
5. **Considering open interest:** Open interest, which represents the total number of open contracts in a market, affects the funding rate calculation. Higher open interest generally leads to more significant funding rates. Traders monitor changes in open interest to understand the dynamics and potential shifts in funding rates across markets. **NOTE: this procedure is for informational purposes only, and before making any decisions, it is advisable to fully understand the dynamics behind it (DYOR). If you have any other strategies in mind, please feel free to share and discuss them on** [**Discord**](https://discord.com/invite/polynomial). # Oracles Polynomial perp is a decentralised derivative exchange which uses **Chainlink** [oracle network](https://chain.link/education/blockchain-oracles) & **Pyth** [oracle network](https://pyth.network/price-feeds?asset-type=crypto\&status=online), which is used to provide the up-to-date token price data to smart contracts on Ethereum and Optimism Mainnet. For more details, check the synthetix doc [here](https://docs.synthetix.io/synthetix-protocol/the-synthetix-protocol/oracles) ### Constituent Contracts | Contract | Description | | --------------- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | | `Oracle` | The oracle is responsible for collecting and updating all token prices known to the Synthetix system. Although it is not a contract, it controls a known Ethereum address from which price updates are sent to the `ExchangeRates` contract. | | `ExchangeRates` | The Synthetix exchange rates contract which receives token prices from the oracle, and supplies them to all contracts that need it. | | | | # Pyth Oracle Polynomial has formed a partnership with [**Pyth**](https://pyth.network/) to provide accurate and up-to-date token price data to smart contracts. This collaboration empowers us to create a diverse range of products and tools (like [Limit Orders](/trading-guide/limit-orders)) that necessitate continuous control and comparison between trigger prices and execution prices (which is supplied by Pyth).

# Chainlink **Chainlink** is a decentralized oracle network that connects smart contracts to real-world data. It enables Synthetix, a platform for synthetic assets, to access real-time price feeds for various assets. Chainlink's oracles retrieve data from trusted sources and securely deliver it to Synthetix's smart contracts. This ensures accurate and timely pricing information for synthetic assets, allowing users to trade with confidence.

# Setup RPC ### Set up Optimism on MetaMask Wallet Polynomial is live on Optimism, a layer 2 on Ethereum. To interact and trade on Polynomial, you will need to setup your wallet and connect it to Optimism. Metamask is the most used wallet on EVM and you can find it here: ### Automatic Setup 1. Go to 2. Scroll to the bottom and click on right "Add OP Network".

3. Metamask popup will open and show the network configuration for Optimism; clicking "Approve" you will configure your wallet's setting for Optimism.

4. Click on "Switch network" to start using Optimism Chain.

### Manual Setup Alternatively, you can add Optimism manually in MetaMask's network settings: * Network Name: **Optimism** * RPC URL: **** * Chain ID: **10** * Currency Symbol: **ETH** * Block Explorer URL: **** ### Update RPCs Sometimes, the RPC endpoint for Optimism may not function properly, causing slow loading or even a complete lack of loading. To ensure uninterrupted use of the chain, it is recommended to have alternative RPCs provided by third-party services such as [**Alchemy**](https://www.alchemy.com/), [**Infura**](https://www.infura.io/), [**QuickNode**](https://www.quicknode.com/chains/optimism), and [**Ankr**](https://www.ankr.com/rpc/optimism/). A comprehensive list of RPCs and their status can also be found on [**Chainlist**](https://chainlist.org/chain/10). #### If you encounter this issue, please follow the steps below to change the RPC endpoint: 1. Open your MetaMask and click **`Setting`**; 2. Select the **`Network`** section; 3. Choice the Network "Optimistic Ethereum"; 4. In the "New RPC URL" field enter the new endpoint URL and **`Save`** the changes .

Select "Optimistic Ethereum", insert the "New RPC URL" and **`Save`**

Now the RPC is updated and should load properly. By following these steps, you will be able to change the RPC endpoint for Optimism. This should resolve any issues you were experiencing with the previous endpoint. If you encounter any further issues, please reach out to our support team for assistance on [**Discord**](https://discord.gg/polynomial). It is possible to create private endpoints but it could requires a payment, for more info you can check here: . ## Funds to Optimism To trade you will need ETH for gas fees and the stablecoin sUSD as a collateral. For a more detailed process check the page "[Trading Guide](/trading-guide)". {% content-ref url="/pages/PpjFNX8TV0mH2JlaeC4J" %} [Trading Guide](/trading-guide) {% endcontent-ref %} # Links


Website	https://www.polynomial.fi
Twitter	https://twitter.com/polynomialfi
Discord	https://discord.gg/polynomial
Mirror	https://mirror.xyz/0xf3897707d8Fa5dC27b2A6575319e409a464eB8D8
Markets Info	https://trade.polynomial.fi/markets
Data Dashboard	https://dune.com/polynomialfi/polynomial-trade
Feedback	https://feedback.polynomial.fi
Roadmap	https://feedback.polynomial.fi/roadmap

# Media kit Download the media kit from here [**Media kit**](https://drive.google.com/drive/folders/1ehOXsulZT_OL8QGRBXNHBeq2gEHwOI_R) # Trading Season 1

Polynomial is extremely excited to launch Trading Season on July 4, 2023 at 10:00 PM UTC and will run for a duration of 2 months. **Trading Season** is a unique product that enhances trading and rewards traders with weekly prizes. Unlike traditional one-off competitions, it offers consistent rewards for elevated performance. During the Trading Season (**July 4 - September 4, 2023**), traders can **level up, earn exclusive NFTs, and compete in exclusive trading competitions** on Polynomial Trade. Each level unlocks a new exclusive NFT and the chance to win $OP token prizes. Higher levels also come with a multiplier on $OP rewards, up to 30% depending on the level achieved. ## Competition Structure The season will feature 7 levels that are determined by XP. This system enables us to provide users with a range of benefits and incentives based on their level.

Users are provided with various benefits and incentives based on their level, as shown in the accompanying picture.

{% hint style="info" %} Trading volume within the USDT market does not contribute to the calculation of the $OP boost and XP. {% endhint %} #### How users level up? Users level up and earn experience points (XP) based on their trading volume and profit: * $1 standard volume ⇒ **1 XP** * $1 advanced order volume ⇒ **2 XP** * $1 Profit ⇒ **1 XP** (on profit alone) Other events or relevant factors can increase the users XP (further info will be shared soon): * Daily activity; * Side Competition; * Referral program. ## Trading Competitions Every week, there will be a competition for a specific level, starting from Level 4. This progression-based system enables participants to continuously earn XP, unlock higher levels, and participate in consecutive competitions

Polynomial has decided to allocate monthly rewards for each competition: * **Level 4:** 2,000 $OP * **Level 5:** 5,000 $OP * **Level 6:** 10,000 $OP * **Level 7:** 15,000 $OP In certain competitions, rewards won't solely be based on **realized PnL** (Profit and Loss). The competition level may introduce some adjustments. Competition duration will be 7 days or less, so remember to close your position in time. Depending on the competition, a snapshot can be taken before, and eligible users within the corresponding level can participate. **For Competition Level 6 - 7:** **RULES:** * Traders who achieve **level 6 or 7** during the competition will also be eligible participants. * Traders are required to achieve a minimum of **$5M** trading volume within the competition. * Rankings will be determined by the combined **unrealized + realized PnL** of traders throughout the competition and only traders with **+ve PnL** will be awarded. **PERIOD:** 🏁Starts: August 25th, 7 PM UTC\ ⌛️Ends: September 4th, 10 PM UTC ### Competition Prizes Weekly prize allocations will be announced, ensuring transparency and fairness. Participants will receive clear details on prize distribution among the winners, allowing them to understand the reward structure and compete for their share. ### OP Incentives The OP incentives for all levels are capped at 50,000 tokens per week. However, the competition prize is excluded from this cap. Additionally, 300,000 OP tokens from Synthetix will be added to the total rewards pool, giving users even more opportunities to earn OP tokens. **Which makes 350k $OP per week for the users who trade on Polynomial. LFG🚀** **For instance:**\ If a user is at level 7, they will receive a 30% boost incentive on the tokens awarded by Synthetix. Let's consider that Synthetix gives to the trader 10,000 $OP after computation. In this case, Polynomial will add an additional 3,000 $OP to the reward. As a result, the trader will receive a total of 13,000 $OP for that week. # FAQ Trading Season Frequently Asked Questions ### How do I enter the Competition? Everyone\* can participate as long as you make at least one trade on Polynomial Trade during the competition. The rankings and participants will be displayed on a dedicated page. ### How do I claim my prize? Prizes and rebates will be sent directly to your smart wallet account after review within a week after the conclusion of each trading competition. ### How are traders ranked during competitions? In competitions, all traders will be ranked based on their PNL (Profit and Loss). ### What is my level? Your level is displayed on your personal page and it depends on the XP accumulated. ### How can I level up? Traders can level up by actively trading on Polynomial Trade. Various mechanisms, including using advanced orders and closing profitable positions, allow traders to earn more XP. Polynomial also plans to introduce additional ways to gain XP, such as daily activity, side events, and referrals. ### Can I deposit and withdraw from my account during the season? Yes, everyone has full control of their assets and can manage their position. ### How many OP I gain this week? The amount of OP received by a trader depends on factors such as volume, level, and competition. Traders reaching specific levels can earn a multiplier on their $OP rewards based on volume, while additional rewards are distributed during the competition based on the leaderboard. ### How can I claim the NFTs? NFTs are claimable on **Galxe** once the corresponding level is reached.\ You can find the Collection to claim here: [**Polynomia Galxe Campaign**](https://chrome.google.com/webstore/detail/editthiscookie/fngmhnnpilhplaeedifhccceomclgfbg?hl=en) ### How can I compute XP? We create a specific page with all the information and some example about XP * [XP Calculation](/campaign-ended/trading-season-1/xp-calculation) *\*Users located in prohibited countries are not permitted to engage in trading activities.* # XP Calculation How compute XP On Trading Season, XP plays a crucial role. It's important to understand how compute it to increase your Level. **Key factor** to compute XP: * $1 standard volume ⇒ **1 XP** * $1 advanced order volume ⇒ **2 XP** * $1 Profit ⇒ **+** **1 XP** (on profit alone) #### Open position XP $$if$$ $$Standard$$ $$Order$$ $$XP= tradeVolumeInUSD$$ $$if$$ $$Advanced$$ $$Order$$ $$XP= limitOrderVolumeInUSD \* 2$$ #### Close position XP $$if$$ $$Standard$$ $$Order$$ $$XP= tradeVolumeInUSD + max(Pnl, 0)$$ $$if$$ $$Advanced$$ $$Order$$ $$XP= limitOrderVolumeInUSD \* 2 + max(Pnl, 0)$$ ### LONG Cases *The cases reported shows XP acquired if trades are completely done (open & close) with Standard or Advanced order.* **Profit**

	Size	Standard Order XP	Advanced Order XP
Open	$1.000	1.000 XP	2.000 XP = $1.000 * 2XP
Close	$1.100	1.100 XP	2.200 XP = $1.100 * 2XP
Profit	$100	100 XP	100 XP
Total XP		2.200 XP	4.300 XP

**Loss**

	Size	Standard Order XP	Advanced Order XP
Open	$1.000	1.000 XP	2.000 XP = $1.000 * 2XP
Close	$900	900 XP	1.800 XP = $900 * 2XP
Loss	$100	0 XP	0 XP
Total XP		1.900 XP	3.800 XP

### SHORT Cases *The cases reported shows XP acquired if trades are completely done (open & close) with Standard or Advanced order.* **Profit**

	Size	Standard Order XP	Advanced Order XP
Open	$1.000	1.000 XP	2.000 XP = $1.000 * 2XP
Close	$900	900 XP	1.800 XP = $900 * 2XP
Profit	$100	100 XP	100 XP
Total XP		2.000 XP	3.900 XP

**Loss**

	Size	Standard Order XP	Advanced Order XP
Open	$1.000	1.000 XP	2.000 XP = $1.000 * 2XP
Close	$1.100	1.100 XP	2.200 XP = $1.100 * 2XP
Loss	$100	0 XP	0 XP
Total XP		2.100 XP	4.200 XP

# OP Season ## Extention of OP Season {% hint style="success" %} **OP Season is extended for 5 more weeks in which 100,000 OP tokens will be distributed weekly to traders on Synthetix perps. By participating in the OP Season, traders can expect to earn significant rewards that can be used to boost their trades on Polynomial.** \ **During the trading season, traders will receive a boost of 10% on top of the OP rewards given by Synthetix.**\ \ 🏁**Starts:** September 13th, 00:00 UTC\ ⌛️**Ends:** October 18th, 00:00 UTC {% endhint %} **More info:** ### What is OP Season? OP Season is a 20-week-long event in which 300,000 OP tokens will be distributed weekly to traders on Synthetix perps. By participating in the OP Season, traders can expect to earn significant rewards that can be used to boost their trades on Polynomial. ### How to become eligible for the rewards Becoming eligible for OP rewards is a straightforward process. Users can earn these rewards simply by trading with multiple assets listed on the Polynomial platform. The amount of rewards earned is based on the fees paid by the user during their trades. {% hint style="info" %} Fees paid for the keeper deposit won't get calculated for rewards {% endhint %} ### Reward structure (old) The OP rewards program will award a total of 5,310,000 OP (approx 14.2m in current value) over a period of 20 weeks. • Week 1 = 10,000 OP • Weeks 2-3 = 100,000 OP • Weeks 4-20 = 300,000 OP ### Reward calculation Traders' performance is evaluated based on the trading fees they have paid, excluding execution fees. ``` rawScore = tradefeespaid ``` ### Estimate $OP rewards Estimated rewards are ratio of your fees paid over total fees paid by everyone else since it’s multiplied by time, it gives an approx amount of OP. **NOTE: OP rewards don’t include keeper fee or funding. All orders in polynomial trade as delayed, i.e. when you place an order it is executed by a bot after 15 second; this execution is gas intensive and costs approx $5 in the current price, which is fixed cost regardless of trade size.** #### **The trader score includes a staked SNX multiplier:** If traders have staked SNX tokens, their score will receive a boost. * 0-2499 SNX: 1.00x * 2500-5000 SNX: 1.05x * 5001-10,000 SNX: 1.075x * 10,001-20,000 SNX: 1.1x * \>20,001 SNX: 1.15x Read more on [Synthetix blog here](https://blog.synthetix.io/synthetix-perps-op-incentives/) **Trading Season Boost (old):** During the trading season, traders with a +4 Level will receive a boost on top of the OP rewards given by Synthetix. * Level 4: +10% OP * Level 5: +15% OP * Level 6: +20% OP * Level 7: +30% OP Read more on [Broken mention](broken://pages/NGBvfGwsq2iRbYlpOIRL) **Estimated rewards pages:** * Traders can see the estimated rewards while opening and closing a position;

* Live estimation can be found on the [**reward page**](https://trade.polynomial.fi/?section=rewards) base on the fees already paid.

* Check on [**Dune Polynomial Page**](https://dune.com/polynomialfi/polynomial-trade)**.**

Example of what is reported on the Dune page

### Reward claim Following each week, users are able to track their OP reward [**here**](https://trade.polynomial.fi/?section=rewards)**.** Every Wednesday, Polynomial distributes the OP rewards to the smart wallet based on traders' trading volume and the total volume traded on Synthetix perpetual contracts throughout the week. The procedure to **claim** them it's similar to withdraw your collateral; just need to interact with your **`Smart Wallet`**: 1. Open the **`Smart Wallet`**; 2. Click on **`Withdraw`**; 3. Select the "**OP**" token; 4. Fill with the amount and complete the withdraw clicking **`Withdraw Funds`**.

## Products Polynomial is already built several products which make DeFi more accessible for users. **Perp:** To read more on the basics of perpetual futures {% content-ref url="/pages/J2gOEnL21zaFFmpAiNsH" %} [Perp](/perp-v3-beta/trade-v2/perp) {% endcontent-ref %} **Trading guide:** To read our trading guide {% content-ref url="/pages/PpjFNX8TV0mH2JlaeC4J" %} [Trading Guide](/perp-v3-beta/trade-v2/trading-guide) {% endcontent-ref %} **Links:** Useful link related Polynomial {% content-ref url="/pages/ffrCRaF2sHjK1RBOyD4W" %} [Links](/perp-v3-beta/community/links) {% endcontent-ref %} # FAQ Frequently Asked Questions ## Perp v3 {% hint style="info" %} During the **testnet competition** will be not available advance orders {% endhint %} ### Which collateral can be used on Polynomial? Perp v3 was built with multi collateral in mind; as margin for an account is accepted any synths token (e.g.: sUSD, sETH, sBTC). ### Cross margin is available on Polynomial? Cross margin is integrated by default. With the same margin will be possible to open positions in different markets. ### What is Account Health? **Account Health** is the indicator of your overall position which monitor your liquidation risk; traders should check it to avoid account liquidation. ### Who provides liquidity for trades on Polynomial? Polynomial Trade is built on top of the Synthetix protocol, and trades on the platform are executed with Synthetix stakers acting as counterparties. Synthetix stakers receive fees from the platform for providing liquidity. \------------------------------------------------------------------------------ ## Perp v2 ### **I** cannot see my funds in my smart wallet after closing a position. What should I do? After closing a position, your funds will not appear in your smart wallet but will be added to the margin of the specific asset you traded. To withdraw the funds from the margin to your smart wallet, navigate to your **`Smart Wallet`** and click on **`Adjust`** for the market with margin. From there, you can choose to **`Withdraw`** your amount. You can also add the funds to different margins from your smart wallet or withdraw them to your MetaMask account.\ \ Please note that if you withdraw margin, your limit order will not be executed.

Follow the instructions above to withdraw sUSD to your smart wallet. ### Can't I open a position? In order to open a trade, the user must have a **minimum of $50 in margin**. If the required amount is not available, users will need to add more sUSD to their margin to open a trade. ### Why can't close my order? You won't be able to close your trade if your margin is below $50. In order to meet the minimum margin requirement and close an active position, you'll need to add more margin. Keep in mind that there is a fee between $0 and $4 for the network (keeper bots), which will be deducted from your margin. If you don't have enough margin remaining, you'll need to add more funds in order to place any new trades. ### Why my position expired? * **Standard Order:** When the price of an asset is highly volatile, it can be difficult for a keeper to fill an order at the ideal market price. In such situations, rather than filling the order at an unfavourable price, the order may expire. * **Limit Order:** To be filled, it must remain within the range of the "Trigger Price" and "Limit Price" for a brief period of time. If this range is not reached before the "Limit Order Expiry" period, the order will expire. More details can be find here: [Orders](/perp-v3-beta/trade-v2/perp/orders) ### Order expire, what should i do now? As reported on [Trading Guide](/perp-v3-beta/trade-v2/trading-guide#expired-order), after an order expires you can decide to: * Do nothing or cancel the order. Your order tab will be clean again. * **`Retry`** the expired transaction, with a 1-click button to reproduce the transaction at market price. * Create a new order, so the expired order gets cancelled in the same transaction.
### Why didn't my limit order go through? If the market moves too quickly and the limit price is not reached, the order may not be executed, and it will become an invalid order. In this case, the trader may need to adjust their trading strategy or intervene manually to manage their position. ### I had accumulated funding, but now it shows $0 Whenever you carry out a transaction (such as depositing, withdrawing or making a new trade), the funding amount is added to your margin. If the accumulated funding rate is positive, your margin will increase, and if it is negative, your margin will decrease. After any of these operations, your funding will be reset to $0. ### How many fee do I pay? Standar Order: * **2/6-10 bps**, Maker/Taker fees based on the market skew; * **Keeper Deposit**, fee given to the keeper bots to execute the trade, based on the current gas price. Limit Order: * **2/6-10 bps**, Maker/Taker fees based on the market skew; * **Keeper Deposit**, fee given to the keeper bots to execute the trade, based on the current gas price; * **Limit Commit Deposit** (0.03%); * **Limit Keeper Deposit** ($1.50). More info about fees [here](/perp-v3-beta/trade-v2/fees). ### My RPC is slow and doesn't work It is available a complete guide on how to setup and update an RPC.


/pages/hYNUGBNaexE3xqkY8MFg	/pages/hYNUGBNaexE3xqkY8MFg
/pages/lHaRR6pKiFZYKzOlPsrR	/pages/lHaRR6pKiFZYKzOlPsrR

# What's new? Overview Perps V3 is an upgrade to the existing Synthetix Perpetuals, designed to provide enhanced functionality, reduced operational costs, and a seamless user experience. **The new website:** [**https://trade.polynomial.finance**](https://trade.polynomial.finance/) **Key Features:** * **Native Cross-Margin:** Unlock the potential of your collateral by utilizing cross-margin capabilities, allowing you to diversify your trading strategies and maximize asset utilization. * **Expanded Margin Collateral Types:** New collateral options, all added based on community demand and governed approval (eg. snxETH & snxBTC). * **Gas Cost Efficiency:** Thanks to the new V3 infrastructure, Perps V3 offers a substantial reduction in gas fees, making trading more economical than ever. * **Oracle Agnostic Integration:** Perps V3 supports multiple oracle solutions, enabling robust and diversified data sources for accurate market pricing. * **Cross-Chain & Synth Teleporters:** deployment on any EVM-compatible chain, enabling cross-chain provisioning of liquidity and ensuring that synthetic assets and markets are not confined to a single blockchain.\ Synth teleporters has **no slippage** because assets are simply burned on one chain and minted on another. * **Permissionless Market / Asset Creation:** the creation process for Pools, Vaults, and Markets will become permissionless, allowing for greater flexibility and innovation in asset and market creation. * **Liquidation Mechanism:** with the introduction of cross-margin there will be account liquidation rather than individual positions (be careful!).


/pages/hYNUGBNaexE3xqkY8MFg	/pages/hYNUGBNaexE3xqkY8MFg
/pages/wq2sKnYIpsAGD4Fx4YZz	/pages/lHaRR6pKiFZYKzOlPsrR
/pages/kux7XkgHLLcR3YOaJtqn

# Multi-Collateral Overview ### How does Multi-Collateral work? When traders deposit alternative tokens like sBTC or sETH into their margin wallet, the system converts these assets' market value into sUSD to display them as collateral. However, traders still have the ownership of the originally deposited tokens. Due to the volatile nature of these assets, the value of the margin can fluctuate accordingly. **Closing positions and loss handling** When a position is closed and incurs a loss, the asset used for collateral is automatically deducted, converted into sUSD, and used to cover the shortfall. **Fee & Funding Payment Structure** Once the product goes live on Base Mainnet, fees and negative funding will be deducted using tokens with the least to most slippage, in the following order (likely - not yet live): sUSD, sBTC, sETH, sOP, and other tokens. This means that traders will first pay fees using their sUSD margin. If they don't hold sUSD, the system will use sBTC, then sETH, and so forth. By employing this approach, traders can minimize the impact of slippage when paying fees. {% hint style="info" %} **Profit & Funding rate (positive)** are always paid in sUSD {% endhint %} # Setup RPC Set up Base Goerli on MetaMask Wallet Polynomial is live on Base Goerli (testnet), a layer Base testnet environment. To interact and trade on Polynomial, you will need to setup your wallet and connect it to Base Goerli. Metamask is the most used wallet on EVM and you can find it here: ### Automatic Setup 1. Go to 2. Scroll to the bottom and click on right "Add Base Goerli Network".

3. Metamask popup will open and show the network configuration for Base Goerli; clicking "Approve" you will configure your wallet's setting for Base Goerli.

4. Click on "Switch network" to start using Goerli Base Chain.

### Manual Setup Alternatively, you can add Base Goerli manually in MetaMask's network settings: * Network Name: **Base Goerli** * RPC URL: **** * Chain ID: **84531** * Currency Symbol: **ETH** * Block Explorer URL: **** ### Update RPCs Sometimes, the RPC endpoint for Base Goerli may not function properly, causing slow loading or even a complete lack of loading. To ensure uninterrupted use of the chain, it is recommended to have alternative RPCs provided by third-party services such as [**Alchemy**](https://www.alchemy.com/), [**Infura**](https://www.infura.io/), [**QuickNode**](https://www.quicknode.com/chains/optimism), and [**Ankr**](https://www.ankr.com/rpc/optimism/). A comprehensive list of RPCs and their status can also be found on [**Chainlist**](https://chainlist.org/chain/10). #### If you encounter this issue, please follow the steps below to change the RPC endpoint: 1. Open your MetaMask and click **`Setting`**; 2. Select the **`Network`** section; 3. Choice the Network "Base Goerli"; 4. In the "New RPC URL" field enter the new endpoint URL and **`Save`** the changes .

Now, You can find a list of the testnet RPC. Once is updated, it should load properly.\ By following these steps, you will be able to change the RPC endpoint for Base Goerli. This should resolve any issues you were experiencing with the previous endpoint. If you encounter any further issues, please reach out to our support team for assistance on [**Discord**](https://discord.gg/polynomial). It is possible to create private endpoints but it could requires a payment, for more info you can check here: . ## Funds to Base Goerli To trade you will need ETH for gas fees and the stablecoin sUSD as a collateral. For a more detailed process check the page "[Trading Guide](/perp-v3-beta/trade-v2/trading-guide)". {% content-ref url="/pages/PpjFNX8TV0mH2JlaeC4J" %} [Trading Guide](/perp-v3-beta/trade-v2/trading-guide) {% endcontent-ref %} # Testnet Competition Overview Perps V3 is in early Beta on Base Goerli. Synthetix and Polynomial decided to host a **Testnet Competition** to introduce the new infrastructure and the new UI, to get some feedbacks from the community. To test the new UI and partecipate in the testnet competition enter the page [**https://trade.polynomial.finance/**](https://trade.polynomial.finance/) and connect your wallet you used during the competition signup. Once logged into the website there will be few step: * sign the TOC;

* create a Polynomial Smart Wallet

Now, You can deposit any funds into your newly created v3 account.

**Ready to trade!**

# Calculations 1. **Average entry price calculation for positions**

Scenario	Sub-scenario	Average Entry Price
New position opened		AvgEntryPrice = TradePrice
New trade for an existing position	Side changed, i.e. long became short or short became long	AvgEntryPrice = TradePrice
	Size reduced, i.e. long reduces in size but remains long, or, short reduces in size but remains short	AvgEntryPrice = LastAvgEntryPrice
	Size increased, i.e. long increase in size but remains long, or, short increases in size but remains short	AvgEntryPrice = (PreviousSize LastAvgEntryPrice + TradedSize * TradePrice) / NewSize*

Realised Pnl = Pnl for the side which was closed

Unrealised Pnl for position is set to 0

Realised funding = Funding accumulated since the last trade

Unrealised funding for corresponding position is set to 0

| | | Size reduced, i.e. long reduces in size but remains long, or, short reduces in size but remains short |

Realised funding = Funding accumulated since last trade

Unrealised funding for corresponding position is set to 0

| | | Size increased, i.e. long increases in size but remains long, or, short increases in size but remains short |

Realised funding = Funding accumulated since last trade

Unrealised funding for corresponding position is set to 0

## Create smart wallet and deposit into smart wallet Polynomial trade uses smart contract wallets to access the exchange. Click on create an account and create a Polynomial smart account. Read more on: [Smart Wallets](/perp-v3-beta/trade-v2/smart-wallets). After creating the smart wallet, the trader needs to deposit sUSD to the smart wallet. Complete the transaction and the deposit will be added to the SC wallet.

## Getting sUSD Polynomial trade is built on top of Synthetix derivatives and uses sUSD as a deposit asset. Traders can get the sUSD from [Polynomial swap](https://swap.polynomial.fi/), and if you don't have funds in Optimism, then follow the steps, 1. Bridge your assets through your fav bridges to Optimism * * [Bungee](https://www.bungee.exchange/) * * [Hop.Exchange](https://app.hop.exchange/send?token=USDC\&sourceNetwork=ethereum\&destNetwork=arbitrum) The transfer of assets may take a few minutes and will be deposited onto your Optimism network upon completion. 2. After bridging your ETH, swap using [Polynomial Swap](https://swap.polynomial.fi/) to sUSD.

## Add margin After adding funds to the smart wallet, traders can add [margin](#add-margin) to the respective markets. The minimum margin to start trading is $50, and no max limit exists.

Click on adjust the margin and add your sUSD to the margin to start trading. You can always add a margin later by clicking adjust margin.

## Open a position ### Video Tutorial {% embed url="" %} #### Place an order Use Long or Short according to your market view and open a position by entering the margin you want to use. Polynomial trade has different types of orders which are [**standard**](/perp-v3-beta/trade-v2/standard-order), [**limit**](/perp-v3-beta/trade-v2/trading-guide/limit-orders), [**stop**](/perp-v3-beta/trade-v2/trading-guide/stop-orders) and [**TP/SL**](/perp-v3-beta/trade-v2/trading-guide/take-profit-stop-loss) order. Select the convenient type order depending on your strategy.

If it is still unclear how Long and Short trades work, you can refer to the [Basics](/perp-v3-beta/trade-v2/perp/basics-of-perp) section. Once the user has decided on the direction of their trade, they can enter the trading amount and choose the desired [leverage](/perp-v3-beta/trade-v2/perp/leverage). At this point, the fees and keeper deposit will be displayed, and the user can review the fees before opening the position. Clicking on either Long or Short will initiate the position and it will be visible in the position tab.

There is also a "[funding rate](/perp-v3-beta/trade-v2/perp/funding-rate)" that is deducted over time as fees. #### Expiry and Price impact Traders can set the expiry and price impact delta of a new position manually in the UI. It helps the traders to manage their position when there is a huge movement in the market. Click on the toggle next to the orders type and select the expiry of the Limit order and the Price impact delta for the order.

After opening the position, the trade comes on positions, and the trader can manage the trades on this tab. The trader can view the position size, open price, Liquidation price, and PnL on this tab.

## Expired Order Expired order is a order that has not been filled because high volatility in the market or has reached its expiry time.

After an order expires you can decide to: * Do nothing or cancel the order. * **`Retry`** the expired transaction, with a 1-click button to reproduce the transaction at market price. * Create a new order, so the expired order gets cancelled in the same transaction.
## **Closing / Reduce a trade position** To close a trade position, the user can click **`Close`** or use the TP/SL feature directly in the `Position` tab clicking **`Add`**. > Check how to add TP/SL to a position here: [Take Profit / Stop Loss](/perp-v3-beta/trade-v2/trading-guide/take-profit-stop-loss#add-tp-sl-to-a-position).

Once the new limit order is created, it will appear under the `Orders` tab. Users can cancel the limit order at any point in time.

When the **price execution** reaches the **limit price**, the order will be executed, and your position will be opened.

Once the transaction is executed, the order will appear under the `Orders` tab. Users can cancel the stop order at any point in time.

When the **price** reaches the **stop price**, the order will be executed, and your position will be opened.

The TP/SL (and limit/stop type order) will be shown in the `Orders` tab, meanwhile the (standard) order executed by the keepers will be shown in the `Positions` tab;

{% hint style="warning" %} It is important to note that while these orders can be effective risk management tools, they are not foolproof. In certain market conditions, such as during **high volatility** or low liquidity, the execution of these orders may differ from the intended price level. This is known as **slippage** and can result in **trade executions at slightly different prices**. **Traders should consider potential slippage and set their take profit and stop-loss levels accordingly to account for these factors.** **Important:** A reasonable buffer between the stop-loss level and the liquidation price, traders can enhance their chances of preventing liquidation events. {% endhint %} # Perp Perpetual futures, also known as perpetual swaps, are a type of derivative contract that allows traders to speculate on the price of an underlying asset without an expiration date. This means that the contract can be held indefinitely, with the trader choosing to either hold the position or close it out at any time. #### To read more on the basics of perp trading. {% content-ref url="/pages/z0fF3hSOXTxM5mQU3Pur" %} [Basics of perp](/perp-v3-beta/trade-v2/perp/basics-of-perp) {% endcontent-ref %} #### To read more on the funding rate. {% content-ref url="/pages/oqrAr6gNz6mFR4vKddMu" %} [Funding rate](/perp-v3-beta/trade-v2/perp/funding-rate) {% endcontent-ref %} #### to read more different types of orders {% content-ref url="/pages/0BdFuk6w3k6N3dA4l6cC" %} [Orders](/perp-v3-beta/trade-v2/perp/orders) {% endcontent-ref %} #### To read more on the leverage. {% content-ref url="/pages/DGkUQhwvg9tHdTrVC0qh" %} [Leverage](/perp-v3-beta/trade-v2/perp/leverage) {% endcontent-ref %} #### To read more on the Jargon. {% content-ref url="/pages/lx0lh7zStC62oIDugK4w" %} [Jargon](/perp-v3-beta/trade-v2/perp/jargon) {% endcontent-ref %} # Basics of perp Perpetual futures are similar to traditional futures contracts, but they do not have a fixed expiration date and instead use a funding mechanism to keep the contract price aligned with the underlying spot price. ### Long Position

The funding rate in a perpetual futures contract is the fee that is paid by one side of the trade to the other in order to keep the contract price aligned with the underlying spot price. This fee is calculated and paid at regular intervals, typically every eight hours, based on the difference between the futures price and the spot price. If the futures price is higher than the spot price, traders who are long the contract (i.e., expecting the price to rise) will be required to pay a funding fee to traders who are short the contract (i.e., expecting the price to fall). This fee is designed to bring the futures price down and align it with the spot price, so that traders on both sides of the trade have an equal chance of making a profit. If the futures price is lower than the spot price, the opposite will be true and short traders will be required to pay a funding fee to long traders. This fee is designed to bring the futures price up and align it with the spot price, so that traders on both sides of the trade have an equal chance of making a profit. The funding rate is an important aspect of perpetual futures contracts, as it helps to keep the contract price aligned with the underlying spot price and avoids the need for an expiration date. This allows traders to hold the position indefinitely and take advantage of price movements in the underlying asset without the pressure of a deadline. # Funding On Polynomial A new approach ### Funding Rate Velocity Polynomial uses a model called "Funding Rate Velocity" which represents a new approach to compute funding on the blockchain. This model continuously changes funding rates on a block-by-block basis, based on uncorrected position imbalances. As a result, funding rates vary while smoothing out funding rate trajectories. For more information on this model, please refer to: . ### How it works Funding is not directly proportional to the skew of long and short positions. Instead, the skew is a parameter used to calculate the funding rate velocity. **📈 If the skew is long, funding increases.** **📉 If the skew is short, funding decreases.** **⚖️ If the skew is neutral, funding remains the same.** This means that if a large number of big traders suddenly start buying or selling, the funding you have to pay (or receive) will not change immediately, but it may change later if the trend continues. Additionally, you may have funding to pay (or receive) even if the number of buyers and sellers are generally equal (neutral skew). ### New Opportunity The new on-chain funding calculation mechanism offers new opportunities and earning strategies for Polynomial users.\ You can read more about the [**funding rate arbitrage**](/perp-v3-beta/strategies-and-tools/funding-rate-arbitrage-101) strategy [here](/perp-v3-beta/strategies-and-tools/funding-rate-arbitrage-101). # Orders The order types used in Synthetix perp v2 are Delayed Orders. All polynomial perp exchange processes are carried out through these orders. Delayed orders are similar to next-price orders, but with a time delay. Instead of executing an asynchronous 'next-price' order after a semi-arbitrary Chainlink price update, we allow the executor (trader or keeper) to fill the order after a specified amount of time has passed, in addition to a price update. For instance, if the specified delay is 30 seconds and a price update occurs 10 seconds after the order submission, a keeper can still execute the order, or they can wait for the 30 seconds delay to pass before executing the order. {% hint style="success" %} * Front running risk is eliminated * Reduced fee {% endhint %} **To read more on orders:** {% embed url="" %} {% content-ref url="/pages/PpjFNX8TV0mH2JlaeC4J" %} [Trading Guide](/perp-v3-beta/trade-v2/trading-guide) {% endcontent-ref %} {% content-ref url="/pages/xhl0vdfyQVJqzxv8Bq1i" %} [Standard Order](/perp-v3-beta/trade-v2/standard-order) {% endcontent-ref %} {% content-ref url="/pages/RZaq9L6DkHpYfxgS99uV" %} [Broken mention](broken://pages/RZaq9L6DkHpYfxgS99uV) {% endcontent-ref %} {% content-ref url="/pages/tv6cP0Z77uC4fVCO6XyJ" %} [Broken mention](broken://pages/tv6cP0Z77uC4fVCO6XyJ) {% endcontent-ref %}


/pages/PpjFNX8TV0mH2JlaeC4J
/pages/xhl0vdfyQVJqzxv8Bq1i
/pages/RZaq9L6DkHpYfxgS99uV

# Leverage {% hint style="warning" %} High leverage always kills the position. always trade safely and position yourself to avoid Liquidation. {% endhint %}

Term	Detail/Meaning
Price	The price is tracked in real-time from CoinGecko. This value may differ from the actual oracle price used by Polynomial.
24-hr Change	This refers to the change in price of the underlying asset over the last 24 hours. The value can be positive or negative, depending on the asset's price change.
24-hr Volume	This represents the notional volume traded on Polynomial over the past 24 hours. The total volume of the Synthetix protocol will be different since other protocols are built on top of it.
24-hr Trades	This is the number of trades (open or close) executed on Polynomial during the last 24 hours.
Open Interest	In perpetual futures, open interest refers to the total number of outstanding contracts in a particular market. It measures the total number of contracts that have been entered into but not yet closed out or settled.
Unrealized P&L	This is the potential profit or loss that would occur if a position were closed at the current market price.
Realized P&L	This is based on the difference between the entry price and close price of a position. Trading fees and funding fees are also included in the realized P&L.
Collateral / Margin	Amount of an asset required to maintain a leveraged position. On Polynomial the collateral is the stable-coin sUSD
Liquidation	Process of selling off a trader's assets to repay outstanding debts or obligations when their margin balance falls below the required level.
Initial Margin	This refers to the amount of money required to be deposited to open or maintain a leveraged position.
Keeper Deposit	This is the deposit required to run a keeper bot, which is used for delayed and off-chain orders. These orders are executed later by an entity when the timer expires and the order becomes eligible for execution.
Funding Rate	The funding rate is the periodic fee paid between long and short positions to ensure the contract's price aligns with the underlying asset.

Click on Polynomial Wallet and complete the transaction. The Smart is created, and you are ready to use Polynomial Trade. ### Add funds to the Smart Wallet To add funds to the Smart Wallet, the user must have sUSD. If not, Swap it from [Polynomial Swap](https://swap.polynomial.fi/).

After getting sUSD, click on Smart wallet and enter the amount you want to deposit into the Smart wallet from your wallet.

After completing the transaction, the amount will be credited to the Smart wallet and reflected in the sUSD balance. # Standard Order A market order is executed at the current market price as quickly as possible when a user places the order. Since Polynomial Trade is built on top of Synthetix perps, it [Delayed off-chain orders](/perp-v3-beta/trade-v2/perp/orders) by default. The order will be placed directly after the trader places it, and a keeper bot will execute it.

* When the execution price reaches the trigger price, the limit/stop order is converted into a delayed order and executed by the keepers.

For an already open position, it is possible to add the TP/SL order by clicking the Add button in the **`Position`** tab:

TP/SL will be visible both in the **`Position`** tab alongside the corresponding position and in the **`Orders`** tab. {% hint style="info" %} **The main difference between creating a TP/SL order while opening a trade and adding it later is related to their association with the position.** When TP/SL is established during the initial trade entry, it is linked to a specific trade size. In other words, the TP/SL is set based on the parameters defined at the time of opening the position. On the other hand, when TP/SL is added later, it is specifically assigned to an existing position. This means that the TP/SL order is tailored to the characteristics and requirements of that particular position. {% endhint %} {% hint style="info" %} In the case of a high price divergence (more than 2%) between Pyth and Chainlink, the execution price will be based on the Chainlink price. {% endhint %} {% hint style="info" %} It is important to note that while these orders can be effective risk management tools, they are not foolproof. In certain market conditions, such as during **high volatility** or low liquidity, the execution of these orders may differ from the intended price level. This is known as **slippage** and can result in **trade executions at slightly different prices**. **Traders should consider potential slippage and set their take profit and stop-loss levels accordingly to account for these factors.** **Important:** A reasonable buffer between the stop-loss level and the liquidation price, traders can enhance their chances of preventing liquidation events. {% endhint %} ### Closing a Position To close a trade position with a TP/SL order, the process is the same as well as you want to add it later. Users can simply click the **`Add`** button in the `Position` tab to set the trigger prices for the closure. > Check how to add TP/SL to a position here: [Take Profit / Stop Loss](/perp-v3-beta/trade-v2/trading-guide/take-profit-stop-loss#add-tp-sl-to-a-position).


/pages/XvbIbYQrsmhYQXr0jYqy
/pages/qJOdyK30MZd3XCJqMdMK
/pages/urpk9xgp2rqSRJRTPn1m

* [Limit Orders](/perp-v3-beta/trade-v2/trading-guide/limit-orders); * [Stop Orders](/perp-v3-beta/trade-v2/trading-guide/stop-orders); * [Take Profit / Stop Loss](/perp-v3-beta/trade-v2/trading-guide/take-profit-stop-loss); # Fees ## Fees for standard order Polynomial trade charges 0 fees on standard orders. You'll get the exact same price trading through Polynomial trade as what you'd get trading through the perps v2 contracts directly. **Keeper deposit:** Dynamic fee given to the keeper bots to execute the trade (from 0$ to 10$) **Fees:** 2/6-10 bps based on the market skew.

In the image above you can see the difference in costs before and after the Bedrock upgrade. These improvements make Bedrock a significant step forward for Optimism and its ecosystem. Optimism is now: more affordable, faster, and more secure. # 1-Click Funding Arbitrage(beta) Funding Rate Arbitrage Strategy Funding rate arbitrage is a trading **strategy** that capitalizes on variations in funding rates across diverse markets. The primary focus of this approach is to maintain a delta-neutral position, ensuring a balanced overall exposure to market direction. By leveraging these differences, traders aim to seize profitable opportunities in the financial landscape.\ \ Polynomial is set to introduce Funding Arbitrage (beta), an innovative product enabling users to generate yields by simultaneously longing and shorting the same asset on two distinct platforms. This unique offering opens up new possibilities for traders seeking yield opportunities in the market. ### How does it work? {% content-ref url="/pages/NyWYyDcs6iYjauKY6Ma2" %} [Guide](/perp-v3-beta/strategies-and-tools/1-click-funding-arbitrage-beta/guide) {% endcontent-ref %} {% content-ref url="/pages/nDWqG4LAFY3NZ9kNbw1N" %} [FAQ Funding Arbitrage](/perp-v3-beta/strategies-and-tools/1-click-funding-arbitrage-beta/faq-funding-arbitrage) {% endcontent-ref %} **If you have any other strategies in mind or suggestions, please feel free to share and discuss them on** [**Discord**](https://discord.com/invite/polynomial). # Guide Funding Arbitrage Guide ### How does it work? Funding Arbitrage works with just one click, allowing users to open a long position on Aave and a short position on Polynomial simultaneously. This dynamic creates an opportunity to generate yields by capitalizing on the discrepancy between interest and funding rates on the two platforms. #### Step 0: Before to start Check the funding rate value on the dashboard. Funding Arbitrage v1 currently supports shorting ETH on Polynomial and longing on Aave. To ensure a positive yield, the funding rate must be positive. #### Step 1: Fund your SW After connecting your wallet, deposit sUSD into the Smart Wallet. #### Step 2: Managing Risk With your funds in place, you can now choose the margin amount and leverage. The leverage is capped at x5 since Funding Arbitrage is built on top of Aave. {% hint style="info" %} With an initial deposit of $1,000, users can potentially borrow up to $5,000.\ \ Aave's liquidation price is calculated differently from Polynomial as it employs a Loan To Value (LTV) approach, dividing the loan amount by the value of the collateral.\ \ **Max** **LTV sUSD:** 80%\ **Liquidation threshold:** 82.5% {% endhint %} #### Step 3: Start Once all parameters are set, users can open trades with a single click, resulting in two simultaneous actions: * **Short ETH:** A short position on Polynomial Trade is initiated, utilizing a portion of the initial margin. * **Long ETH:** Creating a long position involves three steps: 1. The remaining sUSD is used for a flash loan on Aave to borrow the necessary amount of sUSD; 2. The borrowed sUSD is then swapped for ETH; 3. The ETH is deposited on Aave, and sUSD is borrowed to repay the flash loan. After opening positions, users can track different information. * **Polynomial:** Funding Rate, Funding Velocity, OI * **Aave:** Supply and Borrow APR & Size Every position shows also liquidation price, PnL and other key metrics. # FAQ Funding Arbitrage Frequently Asked Questions ### My estimated APY changed, why? The estimated APY can change due to various factors, including fluctuating funding rates and changes in Supply and Borrow APR. As these variables are subject to time-dependent adjustments, the displayed estimated APY on the user interface may vary accordingly. ### Can i close just one position? In this strategy, partial position closure is not permitted. Only full position closure is allowed to maintain delta neutrality, ensuring that both the opening and closing actions occur simultaneously. ### Which token do you support for the strategy? Currently, FRAS supports only ETH as a token during its beta testing phase. However, based on community feedback and demand, additional tokens and features may be considered for future implementation. ### Can't find my margin/funds? When closing the Funding Arbitrage position, the margin/funds used to open the short position on Polynomial Trade will be available in the ETH margin balance. The implementation of the [**Polynomial Wallet** ](https://trade.polynomial.fi/)makes it easier to track and understand the distribution of funds. *Users located in prohibited countries are not permitted to engage in trading activities.* # Funding Rate Arbitrage 101 Let's discuss the **funding rate arbitrage** strategy. Funding rate arbitrage is a trading strategy that takes advantage of the differences in funding rates between different markets. The key point of this strategy is to maintain a delta-neutral position, which means balancing the overall directional exposure of the trader's positions. Here is a more detailed explanation. ### How does it work? 1. **Identifying markets with high funding rates:** Identify markets with high funding rates: The first step is to find markets with significantly positive or negative funding rates. These are markets where the cost of holding a position is either paid by long positions or short positions. An easy view of all polynomial's markets can be found here: [**https://trade.polynomial.fi/markets**](https://trade.polynomial.fi/markets).\ **Example 1:** Suppose we find a good opportunity in the DOGE market with a funding rate of approximately +0.01% per hour. Since positive funding means that short positions are paid by long positions, we will take a short position in this case.

2. **Finding another platform for opposite position:** To take advantage of the funding rate discrepancy and achieve delta neutrality, you need to find a platform where you can open a position in the **opposite direction** with a favourable funding rate.\ **Example 2:** On Binance, we discover that the DOGE perpetual future has a funding rate of -0.016% over 8 hours. To make a fair comparison, we convert it to an hourly rate by dividing it by 8, resulting in a funding rate of -0.002% per hour. 3. **Opening (long-short) positions:** Once you have identified the markets and platforms, you open both long and short positions at the same time. This allows you to be **delta neutral** and limits your exposure to volatile assets while earning the funding rate.\ **Example 3a:** we can open a **short** position on DOGE on Polynomial with a funding rate of +0.01% per hour. At the same time, we can open a **long** position on DOGE on Binance with a funding rate of -0.002% per hour.\ **Example 3b:** since we are shorting the asset in the futures market on Polynomial by selling a DOGE contract, we can simultaneously buy the same asset in the spot market instead.
4. **Farming the funding rate:** By holding these positions open during the funding period, you earn the funding rate as profit. The longer you hold the positions, the more funding rate you accumulate.\ **Example 4a**: If you hold the positions for one day during the funding period, you would earn a net gain of 0.24% on Polynomial (0.01% multiplied by 24 hours) and a net gain of 0.048% on Binance.\ **Example 4b**: If the funding period lasts for one day, holding the positions for that duration would result in a net gain of 0.24% on Polynomial. Additionally, you can use the spot position on Polynomial to earn additional rewards, such as lending or staking ETH.
5. **Considering open interest:** Open interest, which represents the total number of open contracts in a market, affects the funding rate calculation. Higher open interest generally leads to more significant funding rates. Traders monitor changes in open interest to understand the dynamics and potential shifts in funding rates across markets. **NOTE: this procedure is for informational purposes only, and before making any decisions, it is advisable to fully understand the dynamics behind it (DYOR). If you have any other strategies in mind, please feel free to share and discuss them on** [**Discord**](https://discord.com/invite/polynomial). # Oracles Polynomial perp is a decentralised derivative exchange which uses **Chainlink** [oracle network](https://chain.link/education/blockchain-oracles) & **Pyth** [oracle network](https://pyth.network/price-feeds?asset-type=crypto\&status=online), which is used to provide the up-to-date token price data to smart contracts on Ethereum and Optimism Mainnet. For more details, check the synthetix doc [here](https://docs.synthetix.io/synthetix-protocol/the-synthetix-protocol/oracles) ### Constituent Contracts | Contract | Description | | --------------- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | | `Oracle` | The oracle is responsible for collecting and updating all token prices known to the Synthetix system. Although it is not a contract, it controls a known Ethereum address from which price updates are sent to the `ExchangeRates` contract. | | `ExchangeRates` | The Synthetix exchange rates contract which receives token prices from the oracle, and supplies them to all contracts that need it. | | | | # Pyth Oracle Polynomial has formed a partnership with [**Pyth**](https://pyth.network/) to provide accurate and up-to-date token price data to smart contracts. This collaboration empowers us to create a diverse range of products and tools (like [Limit Orders](/perp-v3-beta/trade-v2/trading-guide/limit-orders)) that necessitate continuous control and comparison between trigger prices and execution prices (which is supplied by Pyth).

# Links


Website	https://www.polynomial.fi
Twitter	https://twitter.com/polynomialfi
Discord	https://discord.gg/polynomial
Mirror	https://mirror.xyz/0xf3897707d8Fa5dC27b2A6575319e409a464eB8D8
Markets Info	https://trade.polynomial.fi/markets
Data Dashboard	https://dune.com/polynomialfi/polynomial-trade
Feedback	https://feedback.polynomial.fi
Roadmap	https://feedback.polynomial.fi/roadmap
Perp V3	https://trade.polynomial.finance/

# Media kit Download the media kit from here [**Media kit**](https://drive.google.com/drive/folders/1ehOXsulZT_OL8QGRBXNHBeq2gEHwOI_R)