CVEX Overview

Crypto Valley Exchange (CVEX) is a pioneering force in the Decentralized Derivatives Exchanges (DDEX) space, offering a novel approach to futures and options trading within decentralised finance.

CVEX Platforms, powered by the CVEX Protocol, merge best practices of traditional finance with decentralized principles, establishing a new standard in the DeFi arena. CVEX is designed to provide a complete trading experience, not compromising the safety of funds and operational transparency, while offering ease of access and utilization. The protocol is asset-agnostic and can easily be extended to other asset classes, such as commodities and equities. Assets don't have to be tokenised to be listed, just require a reliable data source for pricing.

Portfolio Risk Management

At the heart of CVEX's design is an on-chain Portfolio Risk Management, employing a Value-at-Risk (VaR) model. This methodology allows traders to utilize higher leverage while maintaining controlled risk exposure. The protocol's design facilitates efficient capital utilization, delivering cross-margin and robust risk management techniques, such as margin sensitivity to concentration risk for liquidity assurance of counterparties.

Clearance and Security

CVEX employs automated Clearance Bots that operate within set risk parameters deterministically to reinforce stability and security. The markets are actively monitored, and specialized Risk Oracles adjust risk parameters to adapt to market changes. Additionally, the protocol incorporates fully automated Default Funds as an extra layer of protection to maintain market stability in volatile conditions.

Collateral and Stability

Recognizing the critical role of collateral transparency in derivatives trading. Collateral is on-chain and transparent. We don't create our own token with unknown pricing characteristics, CVEX has intentionally selected USDC as the collateral currency, thereby minimizing the risk of collateral defaults and contributing to the stability of the trading environment. Furthermore, the adoption of Circle's Cross-Chain Transfer Protocol (CCTP) allows reliable deposit and withdrawal collateral using any supported chains with no friction. This means that whilst the protocol is on Arbitrum users from CCTP enabled protocols can access it directly. For developers of platforms this means they can create their own markets without worrying about user access.