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Fufuture
  • Overview
    • Light Paper - Make DeFi great again
  • FUFUTURE
    • What is Fufuture?
    • Features of Fufuture
    • Fufuture's Goal
  • Risk-free Perpetual Options
    • The advantages of Fufuture's risk-free perpetual options
    • Applying Nash Equilibrium in Decentralized Trading Networks
    • Five Core Roles Established Based on the Nash Equilibrium
    • Fee Schedule
  • Dual Liquidity Pool Mechanism
    • What is Dual Liquidity Pool Mechanism?
    • How Do Private Liquidity Pools Work?
    • How Does a Public Liquidity Pool Work?
    • Liquidation
    • Staking
  • Tutorials
    • Fufuture Risk-Free Perpetual Contract Usage Tutorial
    • Fufuture Private Liquidity Pool Usage Tutorial
  • Tokenomics
    • Token Information
    • Token Distribution
    • Token Mechanism
  • roadmap
    • Roadmap
  • Links
    • Official Website
    • Medium
    • Twitter
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  • No Forced Liquidation Risk
  • Measured Losses, Unlimited Gains, Amplified Leverage with Confidence
  • No Position Anxiety, Trade with Ease and Peace of Mind
  • Precision Pricing
  1. Risk-free Perpetual Options

The advantages of Fufuture's risk-free perpetual options

No Forced Liquidation Risk

In standard perpetual contract trading, high leverage can be risky, potentially leading to significant issues from minimal price fluctuations, such as being subjected to forced liquidations. In such scenarios, investors might confront the risk of principal loss. In contrast, Fufuture's perpetual options mitigate such risks by introducing a daily funding fee mechanism, allowing investors to sustain their positions. This design aims to shield users from the vulnerabilities of short-term price volatilities.

Measured Losses, Unlimited Gains, Amplified Leverage with Confidence

Fufuture's perpetual options apply a predetermined funding fee within fixed intervals to maintain investors' positions, a method conducive to setting bounds on potential losses. Conversely, based on market performance, an investor's profit can remain uncapped. Moreover, the leverage ratios provided by Fufuture's perpetual options might differ from other market products, prompting investors to make choices in line with their risk appetite and investment objectives.

No Position Anxiety, Trade with Ease and Peace of Mind

In highly volatile markets, investors may grapple with decision-making pressures, notably oscillating between holding or liquidating positions. Such pressures might culminate in premature or delayed trading decisions. However, due to the distinctive design of Fufuture's perpetual options, investors can, to an extent, alleviate the stress caused by market fluctuations, empowering them to hold their positions with greater assurance.

Precision Pricing

Fufuture's on-chain perpetual options pricing incorporates mathematical concepts such as stochastic processes, volatility, and partial differential equations. Coupled with initial margin considerations, this intricate approach has pinpointed an accurate solution for the funding fees associated with Fufuture's perpetual options. Additionally, Fufuture has adeptly implemented nonlinear cutting processes. By substituting the exact solutions of nonlinear pricing models with linear computations, Fufuture has derived an approximate solution for on-chain pricing. After hundreds of back-testing iterations, the discrepancy between on-chain and actual pricing remains restrained within 0.05‰.

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Last updated 1 year ago