fx Docs
  • f(x) Protocol Documentation
  • OVERVIEW
    • 📖Abstract
    • ⭐Core Products of f(x) Protocol 2.0
  • f(x) Protocol Mechanisms
    • ⚖️The f(x) Invariant
    • ⚙️Key Functions of f(x) 2.0
    • 🚀Creating a Leveraged Position (xPOSITION)
    • 🪂Rebalancing the Position (Liquidation Brake)
      • Understanding the band system
      • Liquidation process
      • Developers
    • 💰Stability Pool
    • 💵Fees
  • RISK MANAGEMENT
    • 🧘‍♂️Risk framework
    • ✅Advanced Peg Protection Mechanisms
      • Understanding the redemption mechanism
    • 🚨Risk parameters
    • 🧭Oracle
      • stETH
      • WBTC
    • 🛡️Audit Reports
  • Earn with f(x)
    • 💲USD high & sustainable yield
    • 🪙$FXN Tokenomics
      • veFXN
      • FXN Farming and veFXN Boost
    • 🔥Protocol Revenue & Distribution
  • POWER TO THE PEOPLE
    • 🤝Get involved - Community Booster Program
    • 🫂Referral Program
  • FAQ
    • 🟦Is fxUSD an algorithmic stablecoin?
    • 🟦Where does the yield come from?
    • 🟦How do f(x) Protocol stablecoins maintain stability?
    • 🟦Is there any LUNA-like risk?
    • 🟦How does f(x) Protocol minimize liquidations?
    • 🟦How does f(x) Protocol minimize funding costs?
    • 🟦What could go wrong?
    • 🟦Why are there different stablecoins?
    • 🟦What is the difference between f(x) Protocol V1 and V2?
    • 🟦What price drop would it require for my xPOSITION to be rebalanced/liquidated?
  • GUIDES
    • 📈How to open a leverage position (xPOSITION)
    • 📉How to close a leverage position (xPOSITION)
    • 📐How to adjust your leverage / how to reduce your Liquidation Brake
    • ➕How to add/reduce a leverage position?
    • 💰How to stake into the stability pool?
    • 🚶‍♂️How to unstake from the stability pool?
  • MORE
    • 🔡Token Breakdown
    • 1️⃣f(x) Protocol 1.0
      • Leverage
      • Earn
      • Stability Mechanism
      • FX Auto-Compound
      • Oracle
    • 🖥️Resources
      • Contracts
      • Useful links
    • 🪔Aladdin DAO
    • 😎 Brand Assets
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  • Global Risk Parameters
  • Pegging Risk Parameters
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  1. RISK MANAGEMENT

Risk parameters

Please find the risk parameters of the protocol below. Note that all of them are adjustable by governance.

Global Risk Parameters

Parameter
Value

Rebalance Line

LTV = 88%

Rebalance Bounty

2,5%

Liquidation Line

LTV = 95%

Liquidation Bounty

4%

Stability Pool TVL threshold under which keepers can use their funds to rebalance

$10,000

Leverage Range

1.1x - 7x

Stablity Pool redemption Period

30 minutes

80%

80%

Pegging Risk Parameters

Parameter
Value

Stability Pool peg arbitrage threshold

0.3%

Redemption fee

0.5%

Max redeemed fxUSD proportion of xPOSITION at a time, starting with the highest leverage

20%

fxUSD Depeg threshold

Curve fxUSD/USDC EMA price hits 0.998

USDC depeg threshold to disable USDC deposits into the Stability Pool

USDC Oracle Price hits 0.995 or below

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Last updated 1 month ago

Maximum amount USDC from the Stability Pool deposited on Aave Core ()

Maximum amount of wstETH from the reserve deposited on Aave Prime ()

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FIP-12
FIP-12