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Frequently Asked Questions
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Lynx has the ability to support any token as collateral, allowing traders to choose from the wide variety already listed. If there's a token you want to be enabled as collateral that's not already listed, let us know by submitting a ticket!
All positions are settled in terms of the collateral asset used when opening the trade. For example, a trader using BTC as their collateral would trade against the BTC liquidity pool; any profits would therefore be earned in terms of BTC, and any losses/fees would also be paid in terms of BTC.
In Lynx, accounting is done in terms of token units rather than USD value. For example, a trader with 1000 TKN as collateral and a PnL of +200% would be paid out an additional 2000 TKN, regardless of the TKN price. Similarly, if the same trader had a PnL of -50%, they would lose 500 TKN, regardless of its price. This means fluctuations in TKN's price can not affect a user's position (eg. push them closer to liquidation).
The take profit parameter plays an important role in guaranteeing platform solvency by ensuring winning traders always have funds available to compensate them, thereby preventing Lynx from incurring bad debt.
By enforcing a take profit, Lynx's accounting mechanism knows the maximum amount its liquidity pools will have to pay out to traders at any given time. Knowing this max, the platform will not open trades in which a user could potentially earn more than what is readily available.
Lynx does not have a token yet nor have we announced any plans... yet :)