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
    • 💰Stability Pool
    • 💵Fees
  • RISK MANAGEMENT
    • 🧘‍♂️Risk framework
    • ✅Advanced Peg Protection Mechanisms
      • 🚨Risk parameters
      • 🧭Oracle
      • 🛡️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
      • 🤝Community Booster Program
      • 🫂Referral Program
    • FAQ
      • 🟦Is fxUSD an algorithmic stablecoin?
      • 🟦How do f(x) Protocol stablecoins maintain stability?
      • 🟦Is there any LUNA-like risk?
      • 🟦Is it truely impossible to get liquidated?
      • 🟦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 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
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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

    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 0.995

    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 12 days ago

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    • Global Risk Parameters
    • Pegging Risk Parameters