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What is YFX V2?
YFX V2, developed in 2022, is an upgraded iteration of V1.
YFX V2 is an upgrade iteration of V1, which adds some features of perpetual contracts based on V1 and improves UI design to offer a better trading experience for professional traders. V2 was audited by Certik in June 2022. Learn more: https://skynet.certik.com/projects/yfx
YFX V2 adopts the single position mode. All long and short orders of the same trading pair will be merged, and there will only be one position in one market.
In the single position mode, if the newly opened position is in the same direction as the current position, the position size will increase; if the newly opened position is in the opposite direction to the current position, the position size will decrease.
Assuming that Alice holds a long position of 1 ETH and a long order of 0.5 ETH is executed, Alice's overall position will become a long position of 1.5 ETH.Assuming that Alice holds a long position of 1 ETH and a short order of 0.5 ETH is executed, Alice's overall position will become a long position of 0.5 ETH.Assuming that Alice holds a long position of 1 ETH and a short order of 3 ETH is executed, the profit and loss of 1 ETH will be settled at this time, and Alice's overall position will become a short position of 2 ETH.
The funding fee is a small percentage of the existing position's value that users must pay to or receive from their counterparty at regular intervals.
In YFX V2, the funding fee is mainly used to balance long-short positions and settle between traders and fund pools. YFX does not collect any funding fees as they happen directly between users.
The funding fee is positive when the aggregated long position > short position in the system and longs pay shorts.The funding fee is negative when the aggregated long position < short position in the system and shorts pay longs.
The funding fee on YFX is calculated every second on the blockchain, and the funding fee displayed on the page shows the estimated 8-hour funding fee based on the real-time funding fee.
The real-time funding fee is calculated using the formula below:
YFX V2 has added limit orders. Users can set a specific price for a limit order. If the current price crosses the set price, the limit order will be executed as a market order.
When a limit order is placed, collateral will be deducted from the user's balance. When the limit order is executed, if the position increases, the collateral will be added to the position margin; if the position decreases, the profit & loss will be settled, and the collateral will be returned to the user's balance.
The limit order may not be triggered due to delay and performance issues on the blockchain. YFX is not liable for any losses caused by failures of execution of the limit order.
YFX V2 has added take-profit & stop-loss orders. Users can set two trigger prices for their position: take-profit and stop-loss prices. The position is settled immediately if one of the two prices is triggered.
If a user closes a position manually, the associated take-profit & stop-loss orders will cease to exist simultaneously.
- 1.The take-profit & stop-loss order may not be triggered due to delay and performance issues on the blockchain. YFX is not liable for any losses caused by failures of execution of the take-profit & stop-loss order.
- 2.If users set the stop loss price near the liquidation price, their position may be liquidated before the stop loss order is executed when the market is volatile.
Every transaction on YFX V2 needs to be executed on the blockchain. Therefore, users need to pay an execution fee to the blockchain network.
Currently, the execution fee on zkSync is 0.001 ETH.