📈PRICING

FEDIX being an on-chain derivative market determine its pricing from oracles such as Chainlink where price feeds are integrated on-chain by the oracle nodes. Whenever an order is submitted, the fast oracle will fetch the median price from leading volume exchanges and update the mark price before executing the order to avoid the oracle frontrunning, as the mark price is determined only after the submission of an order.

In addition, traders can set an allowed slippage for each order's submission, to ensure that the order is executed only if the mark price is within the slippage range allowed.

$Trade Price = Mark Price * Slippage + Price Adjustment$

With trade price dynamically adjusted on top of mark price. The pricing is determined by these factors in real time:

Mark Price: The FEDIX protocol gets the real-life decentralized oracle network(DON) price as the base price.

Slippage: The trade slippage on Fedix is calculated based on the virtual liquidity, trade amount, and trade direction, using the XYK model.

Price Adjustment: To reduce the risks of the LPs, the FEDIX protocol have the mechanism to balance the open interest of longs and shorts. When there are more longs than shorts in the protocol, the protocol instigates a rebalance in price by opening up more hedging positions.