# Core Design

In the following subpages, we examine some of the technical design choices of Lynx. Key elements include:

[gross-profit-and-loss-p-and-l](https://lynx-finance.gitbook.io/lynx-finance/welcome-to-lynx/core-design/gross-profit-and-loss-p-and-l "mention")\
How gross PnL is calculated in Lynx and why price volatility of a trader's collateral asset does not impact their PnL (ie. it does not affect their likelihood of liquidation). 

[isolated-liquidity-pools](https://lynx-finance.gitbook.io/lynx-finance/welcome-to-lynx/core-design/isolated-liquidity-pools "mention")\
Who acts as the counterparty to each trade and which asset is used as the "settlement asset" (ie. which tokens do profits get paid in).

[guaranteed-solvency](https://lynx-finance.gitbook.io/lynx-finance/welcome-to-lynx/core-design/guaranteed-solvency "mention")\
How Lynx ensures that winning traders get compensated under all circumstances.

[trigger-bots](https://lynx-finance.gitbook.io/lynx-finance/welcome-to-lynx/core-design/trigger-bots "mention")\
What are the benefits of using bots to execute transactions on Lynx.

These subpages offer high-level coverage of some of Lynx's key design choices. For a deeper dive into the mechanics of the platform, see the litepaper [here](https://docsend.com/view/x3xfrzwtckyeva8e).