How It Works
Overview
Thetis Perpetual Exchange utilizes an isolated liquidity pool model to offer up to 50x leverage on Aptos. The platform ensures minimal price impact, low slippage, and deep liquidity through advanced oracles.
For Traders
Example Trade
Long Position: A trader opens a 2x long APT position with $100 USD by depositing $50 USD worth of APT as collateral and borrowing $50 USD worth of APT from the pool.
If APT price increases by 20%: The position gains $20 USD. The trader receives $70 USD (50 + 20) worth of APT.
If APT price decreases by 20%: The position loses $20 USD. The trader receives $30 USD (50 - 20) worth of APT.
Short Position: Conversely, to open a short position, a trader deposits collateral in stable coins from the pool.
Leverage
Traders borrow assets from the pool to create larger positions. For a 2x long APT-USD position, borrow an additional 1x APT from the pool. This incurs an hourly borrow rate.
Hourly Borrow Rate
The hourly borrow fee is calculated based on the hourly borrow rate, position size, and token utilization percentage:
For example, with APT at 50% utilization and an hourly funding rate of 0.01%, a $1000 APT-USD position incurs $0.05 per hour in borrow fees.
Auto Closing Positions
The maximum allowed leverage is 50x. Positions where collateral, less fees and unrealized losses, is less than 0.5% of the position size will be liquidated.
Oracle
Thetis Market always use Pyth oracles on the trading prices and chart data. However, there are 2 types of Pyth oracles, the mainnet-beta oracle and the pythnet oracle.
For position changes, such as opening, closing or liquidating positions, keeper bots utilize Pyth's mainnet-beta prices. In times of congestion, they will use the backup Pythnet oracles. This improves reliability for traders to adjust their positions.
For chart data, we are using the PYTH Hermes web service. The Hermes web service is using the prices from Pythnet. There might be slight deviations between the chart and your execution prices occasionally, due to the small variation between mainnet-beta and pythnet prices.
You can check out the APT/USD mainnet-beta oracle here and the APT/USD pythnet oracle here.
You can also utilize Pyth Benchmarks to check the oracle price for any of Pyth's listed tokens at any timestamp. Use this to independently verify historical oracle prices.
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