> For the complete documentation index, see [llms.txt](https://onex-3.gitbook.io/onex-document/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://onex-3.gitbook.io/onex-document/swap/derivatives.md).

# Derivatives

## 19. Perpetual Trading Engine

Full-featured decentralized perpetual futures unified with spot trading in one interface.

| Specification            | Value                                                                |
| ------------------------ | -------------------------------------------------------------------- |
| Pairs at Launch (EVM)    | BTC, ETH, SOL, ARB, AVAX, LINK, MATIC, OP, BNB, DOGE + 40 additional |
| Pairs at Launch (Solana) | BTC, ETH, SOL, BONK, JTO, PYTH + 20 additional                       |
| Maximum Leverage         | 50x (retail) — 100x (institutional with additional margin)           |
| Settlement               | Continuous funding rate — settled every 8 hours                      |
| Liquidation Engine       | Partial liquidation with 3-step escalation before full liquidation   |

### Liquidation Risk Monitor

* Real-time margin ratio display showing current distance to liquidation price
* Configurable alerts: notify when margin falls within 10%, 5%, 2% of liquidation threshold
* Historical funding rate chart for each pair — shows accumulating funding cost over time

> **IMPORTANT:** This is a risk monitoring tool, not a price prediction tool. It shows current risk based on current price. Trade decisions must not be based on this monitor alone.

### Funding Rate Harvesting Alerts

When a perpetual funding rate on ONEx diverges more than **0.05%** from the same pair on GMX, dYdX, or Hyperliquid, the system alerts the user to the basis trading opportunity:

* Current ONEx funding rate vs. competitor funding rate
* Estimated annualized yield from the differential
* Capital required to capture it

***

## 20. Options Trading Layer

Native decentralized options use a **Liquidity Provider-backed model** (similar to Lyra Finance and Premia) where LPs collectively underwrite options risk rather than requiring individual counterparties for each strike and expiry.

**Launch scope:** Put and call *buying* on BTC, ETH, SOL, ARB, AVAX, LINK (6 assets). Options writing and selling added in V2 after liquidity bootstrapping.

The **Options Skew Dashboard** shows the full implied volatility surface across all strikes and expiries for each asset — institutional-grade data built into the interface.

### Natural Language Strategy Builder

**User input:** "I think ETH goes up 10% in 2 weeks but I want downside protection."

**AI output:** Bull Call Spread — Buy ETH $3,900 Call (2-week expiry), Sell ETH $4,200 Call (2-week expiry). Max gain: $300 per contract. Max loss: Premium paid only.

Each strategy recommendation includes:

* Current implied volatility context
* Greeks (delta, gamma, theta, vega)
* Break-even prices
* Probability of profit estimate

> **DISCLAIMER:** AI strategy suggestions are educational illustrations. They are not personalized financial advice. Consult a financial professional before trading options.

***

## 21. Unified Spot-Perp-Options Strategy Engine

ONEx uniquely enables strategies that span all three markets simultaneously — the only DEX with this capability.

| Strategy                            | Mechanics                                                                                             | Risk Profile                                            |
| ----------------------------------- | ----------------------------------------------------------------------------------------------------- | ------------------------------------------------------- |
| **Basis Trading**                   | Buy spot + short perp = capture funding rate yield                                                    | Near-zero directional. Risk: funding flips negative     |
| **Delta-Neutral LP Farming**        | Provide AMM liquidity + perp hedge to neutralize impermanent loss                                     | Earns LP fees, avoids directional exposure              |
| **Momentum with Shield**            | Long spot + trailing stop-loss + protective put option                                                | Captures upside with defined maximum loss               |
| **Volatility Harvest**              | Sell options premium (V2) + perp delta hedge                                                          | Earns from time decay; risk: large directional moves    |
| **Conditional Liquidity Provision** | LP position activates only when price is within user-defined range AND market regime meets conditions | Implemented as strategy NFTs executed by keeper network |

***

## 22. Live Liquidation Intelligence Map

Real-time visualization showing where cascading liquidations will create price acceleration zones, based on on-chain perpetual positions across all integrated DEX perp protocols.

> **IMPORTANT DISCLAIMER:** All analysis from the Liquidation Map is labeled "Liquidation Cascade Analysis — For Informational Purposes Only. Not Financial Advice. Past liquidation patterns do not predict future price movements." No specific price targets are presented as recommendations.