Vanilla Boundary Perps
Vanilla Boundary Perps let you take a position on which of two price boundaries an asset will reach first.
Defining the Position
The current market price must sit strictly between two boundaries:
Upper bound: A price above the current market price
Lower bound: A price below the current market price
You then choose one of two outcomes:
Upper first: The upper bound will be reached before the lower bound.
Lower first: The lower bound will be reached before the upper bound.
The boundary you select is the chosen boundary. The other is the non-chosen boundary.
Outcomes
Upper bound
Won
Lost
Lower bound
Lost
Won
A boundary counts as crossed when the settlement price reaches or passes it. The market does not need to stop or trade continuously at the exact boundary value.
Example
BTC is trading at $100,000. You choose:
Upper boundary: $110,000
Lower boundary: $97,500
Outcome: Upper first
Stake: 1,000 USDC
Because the upper boundary is farther from the current price than the lower boundary, upper-first is the less likely outcome under the pricing model and therefore offers a larger potential payout.
If the accepted quote shows a fixed payout of 5,000 USDC:
BTC reaching $110,000 first records a winning payout of 5,000 USDC
BTC reaching $97,500 first loses the 1,000 USDC stake.
The 5,000 USDC payout includes the original 1,000 USDC stake, so the gross profit before fees is 4,000 USDC.
Position Rules
Both boundaries must be within the supported range for the asset.
The non-chosen boundary must satisfy the configured minimum distance.
The stake must be within the supported limits.
A user may hold multiple positions on the same underlying, subject to available book capacity.
Boundaries and payout cannot be changed after the position opens.
An active position can resolve at a boundary or be closed early.
See Vanilla Boundary Perps Pricing to understand how boundary placement affects the quote.
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