Trading

General

All contracts are bilateral. You can find the counterparty to any given position in the trading table, under the Positions tab. You may also see your counterparty's positions.

Perpetual Futures

• Funding rates are settled at 8-hour intervals. We chose 8 hours instead of 1 hour to make it easier to arbitrage funding and lending rates.

• Perps are always settled in Denomination: USDM.

• Perp funding must be paid in Denomination: USDM.

• If an account does not have Denomination: USDM to pay the funding rate, it receives a 24-hour, 0 interest loan. If the loan expires without payment, the liquidation engine will attempt borrow Denomination: USDM from the lending market and use the loan to settle your perp. If for some reason it is unable, it will liquidate your account.

• Unrealized PnL counts towards margin, but cannot automatically be used to pay funding fees. You can use the "True Up" action on your Positions tab to easily realize unrealized PnL.

• There are no ADLs on World. Unlike CEXs, this is not a risk.

Read the full details for perpetual futures on World at Perpetual Futures.

Loans

• Loans are always 10-day durations.

• The interest rate for the loan is fixed during the 10-day duration.

• Borrowers must pay interest and return the loan principle within 10 days. Failure to do so will automatically borrow more capital (10d) to pay the interest on the old loan. This auto-borrow charges $1 as a fee.

• By default, loans may be fully or partially extended in 10 day increments by the borrower (upon paying interest and partial principle due).

• A lender may choose to mark a loan as non-extensible, in which case the borrower must pay the interest and loan by the due time. When the loan principle is paid back, if the loan is extensible, the loan is returned to the order book.

• Minimum loan duration is 8 hours.

• Interest payments are made in the underlying asset. An ETH loan pays and receives interest payments in ETH.

• When you lend out capital, you may use your loan as margin. The loan's contribution to available margin is 98% of the notional value of the loan.

• Interest on loans is accrued hourly.

• You may swap your counterparty if you pay the difference in rates between your current borrowing counterparty and the new one.

For example, let's say you borrow 100 ETH from the ETH loan market. Let's say the market rate to borrow ETH is 3%. All loans have 10 day durations, which means you will owe the lender 100 x 3% x (10/365) = 0.082 ETH in 10 days (equivalently, 3 ETH annualized).

Importantly, when you Borrow, the Borrow position is a liability, not an asset. When you borrow, you will see both your spot balance increase for that asset (or appear new if you had none) and a new Borrow position appear. The increase in Spot is the asset, and the Borrow position is the liability. Borrowing, without selling, results in no change in net market exposure.

For example, this Portfolio has no market exposure to ETH.

And this Portfolio is short 0.5 ETH.

Read the full details for loan contracts on World at Lending.

Spot

• All spot listings are ERC-20s.

• Some (not all) vault tokens are listed in the spot market.

• Any asset listed in the spot market may be deposited, withdrawn, and used as collateral.