custom parameters

Trading in the dynamic #perpetual futures market requires swift adaptation, given that minor changes can have a deep impact.

Let’s look into the benefits of customized trading and how Parifi enables this.🧵👇

2/ Customized trading in the perpetual market brings numerous advantages, focusing on flexibility, #riskmanagement, and responsiveness to market shifts.

Key benefits include:

• Tailored risk management
• Reduced emotional bias
• Increased control

3/ Parifi prioritizes adaptability, allowing various modifications by traders or the protocol itself. This ensures efficiency and a secure, fluid experience.

4/ Traders can:
• Select leverage levels matching their risk appetite
• Utilize limit orders or set maximum slippage to mitigate risks associated with leveraged positions
• Make post-entry adjustments, like leverage recalibration or margin reinforcement

5/ On the protocol side, adjustments include:
• The liquidity Curve adjusts the asset price quotes in relation to the liquidity available in the pool for fair & stable pricing
• The deviation coefficient and the deviation constant adjust the curve based on different parameters

6/
• Fees are adjusted based on live market conditions
• Use of @PythNetwork's rapid price updates for real-time pricing algorithm and liquidity curve adjustments
• Maximum open interest, leverage, and exposure can be adjusted for each asset

7/
• Base Coefficient and Base Constant of the Base Borrowing Fee and the steepness constant of the Dynamic Borrowing Fee control asset volatility

All these create a balanced #trading environment, safeguarding the interests of all market participants and enabling high accuracy.

8/
Overall, customized #perpetual trading significantly enhances flexibility, risk management, and market adaptability, empowering traders to refine their strategies for improved outcomes.

Get ready to experience it all in the upcoming #Mainnet Beta!🔜