Adjustable Parameters by Protocol DAO

Protocol Fee:

• Protocol fee is currently set to 50% of trading fee, in the USDT-BTC/USD(ChainLink Push) market.

• Protocol fee is collected from the trading fees that takers pay to makers.

• Protocol DAO can determine whether to activate the protocol fee per-market basis.

• Once a specific market’s protocol fee is activated, a protocol fee rate can also be determined by the protocol DAO.

Leverage Level:

• Leverage level is the maximum range of leverage takers can set when opening a position.

• The protocol DAO can set the leverage level per-market basis by choosing a tier for each underlying index based on its risks and volatilities.

  • Tier 1: max x10

  • Tier 2: max x20

  • Tier 3 : max x50

  • Tier 4: max x100

• There is USDT-BTC/USD(ChainLink Push) market in the initial phase of Chromatic Protocol on Arbitrum mainnet.

  • USDT-BTC/USD(ChainLink Push) market's leverage level: Tier 3 (max x50)

Listing of settlement tokens for market creation:

• Chromatic Protocol has USDT as a settlement token for initial markets.

• The protocol DAO can determine listings of settlement tokens based on a DAO’s proper decision-making process. Settlement tokens serve as the currency for a settlement. Therefore, random tokens with risks cannot be listed as the settlement token without careful consideration.

Minimum betting amount:

• Currently, the minimum betting amount to open a position in the Chromatic Protocol is $10. (Set for USDT settlement token) However, the minimum betting amount should be operated differently for each settlement token of the market.

• The protocol DAO can determine the minimum betting amount per-settlement token basis when making decisions on settlement token listings, ensuring it covers the keeper costs to pay for liquidation fees.

Minimum liquidity deposit/withdrawal amount:

• Currently, there is no minimum amount for liquidity deposit/withdrawal in Chromatic Protocol.

• The protocol DAO can determine the minimum amount for liquidity deposit/withdrawal per-settlement token basis when making decisions on settlement token listings.

Stop-loss ranges:

• The maximum level of stop-loss is always 100%, which is the full amount of the taker’s margin collateralized.

• The minimum level of stop-loss depends on the tier of the leverage level, which is determined by the protocol DAO.

Take-profit ranges:

• The protocol DAO can determine the range of take-profit per-index basis.

• The current take-profit level is set at a minimum of 2%, and a maximum of 1000%.

Summary:

Parameters per-settlement token basis. Which is adjustable by the protocol DAO when listing settlement tokens(Chromatic Protocol has USDT as a settlement token for initial markets):

• Minimum betting amount: currently $10 (In USDT marekt)

Parameters per-index basis

• Stop-loss/take-profit ranges

Parameters per-market basis:

• Protocol fee rate: Currently set at 50%

• Tier of leverage level: From tier 1(maximum leverage x10) to tier4(maximun leverage x100)

• ​​Market direction: There are 3 direction types (Long & short, Long only, Short only)