CVEX Platforms are ensembles of data structures within a smart contract, enabling decentralised derivatives trading operated by the CVEX Protocol. As an integral part of the protocol, they are empowered by all its capabilities and are available for instantiation by anyone in a permissionless manner. Each platform preserves its unique contracts and collateral pool, ensuring distinct operational processes and preventing cross-platform interferences.

Key Components Managed by the Protocol

Key components managed by the protocol for each platform include:

  • Collateral Pool: A collection of trader accounts with deposited USDC;

  • Index List: An array of underlying assets, such as cryptocurrencies and commodities, used in the platform's contracts;

  • Contract Specifications: Including futures, options, and perpetual contracts, these are defined and continuously revised by the platform operator (e.g., tick size, minimal tradable amount, the underlying asset, expiry dates, etc.);

  • Price Oracles: Chosen by the platform operator to provide index prices for platform contracts;

  • Risk Oracles: Entities that assess and provide risk parameters for the platform and correlations between the assets;

  • Trader Positions & Order Books for each active contract;

  • Operational Fund: Generated from operational fees, this fund covers gas costs for frontends and clearance bots;

  • Default Fund: Serves as a reserve to cover losses in case of extreme trader defaults.

Platform Operation and Oversight

The Platform Operator sets up key components of the platform, although the protocol itself handles the direct management of these components. This setup includes defining tradable contracts and their underlying assets and selecting appropriate Price and Risk Oracles. Platform owners oversee their overall structure and parameters as orchestrators, while the CVEX Protocol executes and manages all operations.

Platform operators play a crucial role as orchestrators of their markets, paid for their continued service supporting the market. A portion of the transaction fees generated on their platform rewards them for providing this service. These operators are instrumental in maintaining an efficient and risk-adjustable trading environment on the CVEX ecosystem. There is no directly analogous component in the traditional financial market to these Platforms, though the closest are Index Providers as neutral arbiters of data sets.

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