FAQ
About KLP
KLP is a collection of assets (like ETH, BTC, USDC) for swaps and leverage trading. Acquired with any index asset, it's convertible to others. Its price is based on (total index asset worth with open position gains/losses) / (KLP supply).
About 10K Price
10K DEX ensures genuine on-chain pricing, offers top-tier trading depth, and prevents large localized market transactions that lead to price swings and liquidation risks. To mitigate latency issues seen with oracles like Chainlink, we aggregate prices from major exchanges like Coinbase, Binance, OKEx, and more.
About 10K DEX fees
Position fee: 0.1% of the position size when opening/closing a position.
Funding Fee: updated at every 8 hours, calculated as (assets borrowed)/(total assets in pool) * 0.01%; Charged when positions changes.
Swap fee: 0.2% to 0.8% of collateral size.
Execution Fee: Paid for block packing.
Liquidation fee：$5.
Opting for non-default collateral while going long or short incurs a swap fee. Long positions use the token being held, such as ETH for ETH longs or WBTC for BTC longs. Short positions employ supported stablecoins like USDC or USDT as collateral.
The 10K DAO will eventually oversee transaction fee distribution. Presently, 70% of the transaction fees are liquidity providers' turnover, accessible anytime. However, selling KLP early forfeits fee distribution rights for the cycle, reset every 7 days at the trading fees settlement phase's conclusion, any early sale of KLP will lose the access and distributions.
About 10K Limit orders
Limit orders is an order that will be executed automatically when the target price is reached. However, limit orders are not guaranteed to be executed. This can occur in a few situations including but not exclusive to:
Insufficient liquidity to execute the order.
The mark price which is an aggregate of exchange prices did not reach the specified price.
The specified price was reached but not long enough for it to be executed.
No keeper picked up the order for execution.
About 10K Liquidation
A mandatory liquidation process initiates when: prices of bearish assets experience a continuous uptrend, prices of bullish assets undergo a continuous downtrend, and users' assets loss approaching the collateral value. The remaining collateral assets will be returned to the original account after deducting losses and liquidation fees.
Under the conditions where Mark Price triggers liquidation:
(Total collateral USD value + Position P/L USD value) < Lending USD value + Liquidation USD value (Should be adequately covered by collateral).
(Total collateral USD value + Position P/L value) * Max leverage ratio < Total position USD value (Limit the max leverage ratio).
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