🪙LIQUIDITY VAULT

The protocol is backed by the liquidity providers. By staking in the vault, liquidity provider takes the opposite position of all traders on the platform. The vault pays for trader profits and receives trader losses. In addition, it also receives trading fees, funding payments and liquidation profit of trades.

To protect vault from big loss in highly volatile conditions, the vault has a maxExposure parameter for each trading pair. When the maxExposure is reached, traders cannot open the additional position that increases the vault's exposure, but can open the position in the direction that decreases the vault's exposure. This should rarely happen when the vault's liquidity is big enough.

The APY shown for the vault is calculated based on the fees distributed to vault in the last 7 days.