Protocol Parameters
Market Specifications
For traders on RateX, the margin token will vary depending on the market and might be different from the yield-bearing asset. The PnL (Profit and Loss) will be settled in the margin tokens.
For LPs and users of Earn Fixed, deposits and withdrawals will mostly be in yield-bearing assets.
| Market | Margin for Traders | LP / Earn Fixed Deposits |
|---|---|---|
JitoSOL | SOL | JitoSOL |
bbSOL | SOL | bbSOL |
JLP | JLP | JLP |
BNSOL | SOL | BNSOL |
Fees
RateX currently charges two types of fees when providing services:
Trading Fees: RateX collects a percentage-based trading fee on every trade. The fee is calculated based on the amount of ST involved in each trade and is distributed between the LPs and the protocol. Currently, LPs receive 50% of the trading fees collected.
PT Management Fees: When minting synthetic PT by combining ST holdings with short YT positions, RateX collects a small portion of the yield from the ST as a management fee, while the majority is streamed to the LP as the YT counterpart. The fixed APY shown to the user is already deducted by the management fee and represents the APY a user is expected to realize by holding until maturity.
The detailed fee tiers are listed below:
| Markets | Trading Fees | PT Management Fees |
|---|---|---|
JitoSOL | 1% | 5% of ST accrued yield |
bbSOL | 1% | 5% of ST accrued yield |
JLP | 1% | 5% of ST accrued yield |
BNSOL | 1% | 5% of ST accrued yield |
Collateral Ratios (CR)
Collateral Ratios (CR) are crucial for leveraged yield trading as they determine whether a liquidation is triggered. At RateX, two types of CR are calculated using different price sources:
Initial CR: This is calculated using the current price. When a user opens a position or withdraws margin from a position, the Initial CR must be met.
Maintenance CR: This is calculated using the TWAP (Time-Weighted Average Price) to prevent price manipulations. When the TWAP CR drops below the Maintenance CR, a liquidation will be triggered.
The CR for each market is listed below:
| Markets | Initial CR | Maintenance CR | TWAP Time Span |
|---|---|---|---|
JitoSOL | 110% | 105% | 300 seconds |
bbSOL | 110% | 105% | 300 seconds |
JLP | 110% | 105% | 300 seconds |
BNSOL | 110% | 105% | 300 seconds |
AR Coefficient
The AR Coefficient determines the maximum number of YT that can be minted for each ST provided as liquidity. For example, if an LP deposits a position equivalent to 100 ST and the AR Coefficient is 2, a maximum of 200 YT can be minted.
| Markets | AR Coefficient |
|---|---|
JitoSOL | 6 |
bbSOL | 6 |
JLP | 3 |
BNSOL | 6 |
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