PerpX Product Documentation
Everything about PerpX
Introduction
Overview of PerpX
PerpX is a next-gen DEX, and decentralized perpetual futures exchange built on the Arbitrum network with deep liquidity, efficient execution, and a trader-first experience. PerpX uniquely combines on-chain transparency, decentralized liquidity, and execution similar to institutional grade trading mechanics into a seamless, secure and innovative trading experience.
PerpX is based on a self-custodial basis, where trade execution is provably fair, and on-chain execution can be verified, unlike centralized exchanges (CEXs). It makes use of dynamic funding rates, optimized liquidity pools, and sophisticated risk management mechanisms to overcome the shortcomings of existing perpetual DEXs.
With a trustless settlement layer, high-speed execution, and trader-focused incentives, PerpX aims to redefine perpetual futures trading in DeFi.
Mission & Vision
Mission
PerpX is committed to making trading in perpetual futures more democratic by providing a transparent, efficient, and decentralized trading process without the limitations of centralized platforms. Our vision is to provide traders with tools, liquidity, and security to be able to trade derivatives in a confident manner.
Vision
We envision a future in which:
Perpetual trading is fully decentralized, permissionless, and trustless.
Traders maintain total control over their money, independent of intermediaries.
Institutional-grade execution is available to all users regardless of trading size or experience.
Liquidity providers are incentivized fairly and sustainably, driving long-term growth.
On-chain trading surpasses centralized exchanges in speed, reliability, and accessibility.
PerpX will continue to innovate, adding AI-based trading, cross-blockchain settlements, and governance by the community to maintain a lead in decentralized derivatives trading.
Why Perpetual Futures?
Perpetual futures contracts have emerged as the primary trading instrument in the crypto industry, with volumes exceeding spot trading on a daily basis. Their popularity stems from:
Leverage Trading: Enable traders to magnify their exposure without requiring full capital.
No Expiry: Unlike standard futures, perpetuals have no expiry, allowing for indefinite trading.
Hedging & Speculation: Investors can hedge portfolios, or speculate on price movements with precision.
High Liquidity & Deep Markets: Perp trading draws liquidity from both market makers and retail users, with indicators showing that the market is still in a healthy position to fill iceberg orders.
Better Capital Efficiency: By using cross-margin & isolated margin, traders can optimize capital utilization.
Yet, current CEX and DEX perpetual trading solutions have the following:
Counterparty risk (CEXs has control / can affect withdrawal → issues).
Market manipulation (centralization, price manipulation, liquidation hunting);
Liquidity inefficiency (high slippage on some DEXs; high funding rate volatility)
PerpX provides a decentralized, transparent, and efficient solution to these challenges designed for both retail and institutional traders alike.
Comparison with Existing Perp DEXs (GMX, Hyperliquid)
Feature
PerpX
GMX
Hyperliquid
Blockchain
Arbitrum
Arbitrum, Avalanche
Arbitrum
Execution Model
On-Chain approvals, off-chain matching
Oracle-based, LP Model
Off-chain CLOB (orderbook)
Liquidity Source
Hybrid LP & Dynamic Marketing
GLP Pool
Internal Market Making
Leverage
Up to 100x
Up to 50x
Up to 100x
Settlement
On-Chain
On-Chain
Off-chain matching, On-chain Finalization
MEV Protection
Yes
No
Yes
Cross & Isolated Margin
Yes
No
Yes
Multi-asset Collateral
Yes
No
No
Referral Program
Yes
Yes
Yes
Trading Fee Reductions
PRPX staking & volume-based rebates
GLP staking incentives
Volume-based incentives
Why PerpX Stands Out:
Powered by Base for cost-effective and rapid transactions
Optimizing liquidity and reducing slippage with Hybrid LP & Dynamic Market Making
Traders leverage advanced AI & Automating Trading to optimize efficiency
Compared to GMX’s single-asset LP model — Multi-Asset Collateral Support by PerpX
On-Chain With MEV Protection, for Fair Trading to All Users
AI as an Ever-Present Trading Assistant
PerpX: AI-Driven Auxiliaries for Trader Optimization, Risk Management, and Strategy Execution
AI-Powered Features
Trade Optimization: AI-driven algorithms will hybrid optimal entry & exit points to real-time market conditions.
Risk Management Assistant: Leveraging AI will be able to assist traders in the setting of stop loss and take profit orders as well as dynamically increase leverage.
Market Sentiment Analysis AI will analyze on-chain & off-chain data to provide traders, with real-time sentiment indicators
AI Alerts & Strategy Automation: Traders can automatically set alerts with AI for funding rate changes, liquidation risks, and spikes in asset price volatility.
Tools to Combat Manipulation: Recognising that price movements, bot attacks and front-runs often involve substantial price manipulation, AI will trigger red alarms whenever these attempts appear to violate fair trading.
By leveraging AI as a perpetual trading companion, PerpX will provide traders with an intelligent, automated, and highly efficient trading experience, making DeFi more accessible to both retail and institutional users.
Market Landscape
Perpetual futures have become the heart of crypto derivatives. Unlike traditional futures, they don’t expire, offering traders flexibility, constant exposure, and deep liquidity. As trust in centralized platforms wanes, on-chain trading is stepping up. Demand for transparency, security, and user ownership is reshaping the space—and PerpX is built exactly for that shift.
Growth of Perpetual Futures Trading
In just a few years, perps went from being a niche product to dominating crypto volumes. Their ability to offer leverage, hedge positions, and support advanced strategies has made them a go-to tool for traders. Now, with L2s like Base reducing cost and latency, decentralized perps are scaling fast—and users are demanding more refined experiences.
Problems in CEXs and Existing DEXs
CEXs still control user funds, often lack transparency, and can freeze accounts at will. DEXs, while more open, suffer from gas fees, liquidity issues, limited collateral types, and poor UX. Neither fully delivers the speed, control, and depth serious traders need.
How PerpX Solves These
PerpX combines the best of both worlds:
Arbitrum = low cost, high speed.
Multi-asset collateral for flexible margin management.
Cross & isolated margin so users control their risk.
On-chain execution + MEV protection = fair trades, always.
Dynamic liquidity pools for lower slippage, better prices.
AI as a Perpetual Trading Companion
AI on PerpX isn’t a gimmick—it’s a toolkit:
Trade insights: Get strategy nudges based on volatility and funding rates.
Risk alerts: Know when you’re overexposed before it’s too late.
Funding forecasts: Avoid paying too much when trends flip.
Post-trade review: Reflect on how you traded, and improve.
Core Features
Perpetual Futures Trading
Users can trade assets like BTC, ETH, and other supported cryptocurrencies with leverage up to 100x.
Unlike traditional futures, perpetual contracts have no expiry, allowing traders to maintain open positions indefinitely.
Pricing is maintained via funding rate mechanisms & oracles, preventing deviation from the spot market.
Positions are settled on-chain via the Arbitrum, ensuring transparency and eliminating counterparty risks.
Order Types
Market Orders: Execute trades instantly at the best available price, ensuring quick entry and exit.
Limit Orders: Traders can specify a price at which they want to buy or sell, enabling automated execution when the price is met.
Stop Orders: Helps in risk management by triggering buy or sell orders when an asset reaches a predefined price.
Trigger Orders: Advanced functionality to automate trading strategies, reducing the need for constant monitoring.
Margin Trading Mechanisms
Cross Margin: Shares collateral across multiple positions, reducing liquidation risk but exposing the entire margin balance to losses.
Isolated Margin: Each position has separate collateral, allowing traders to control their risk per trade.
Dynamic Leverage Adjustments: Traders can modify leverage in real time based on risk appetite and market conditions.
Decentralized Liquidity Pools (LPs)
Users trade against a liquidity pool instead of an order book, enhancing execution efficiency and liquidity depth.
LPs can stake assets to the protocol and earn trading fees & incentives for providing liquidity.
The pool dynamically adjusts asset weights to maintain optimal liquidity across markets.
Risk Management for LPs: The system protects LPs from excessive losses via dynamic rebalancing and fee structures.
Dynamic Funding Rates
Funding rates adjust automatically based on market demand, balancing long and short positions.
Prevents extreme market skewing where one side dominates liquidity, ensuring fair pricing.
Fees collected from funding rates are redistributed within the system, benefiting LPs and stakers.
Settlement & Self-Custody
All trades and settlements occur on-chain via the Arbitrum, ensuring full transparency.
No reliance on centralized intermediaries, eliminating counterparty risks and improving security.
Users retain full control of their funds at all times, unlike CEXs where withdrawals can be restricted.
Liquidity Mechanisms
PerpX is designed to scale liquidity through a hybrid model—combining shared orderbooks from external perpetual DEXs and native liquidity pools as the protocol matures. This gives us the best of both worlds from day one: deep books and fast execution from the start, with a path toward full on-chain liquidity ownership.
How LPs provide liquidity
In our native model (Phase 2 onward), liquidity providers (LPs) will stake assets like USDC, ETH, and blue-chip tokens into pooled smart contracts. These pools will act as the counterparty for trades, similar to GMX and other AMM-perp models. LPs earn a cut of the protocol’s trading fees in return for the risk they take on.
At the protocol level:
LPs provide liquidity into isolated or composite pools.
Traders execute against this pool instead of waiting on counterparties.
Pool value fluctuates based on trader PnL and fee accrual.
In the early stage, we’ll route trades through shared orderbooks with external DEXs (e.g., Hyperliquid, dYdX), while still confirming user actions on-chain via Base. This allows us to provide instant execution and competitive spreads, even before full TVL ramps up.
Fee Structure for LPs & Traders
Traders pay a small fee per trade (e.g., 0.05% taker / 0% maker).
LPs earn:
A portion of trading fees (paid in USDC or base token).
Optional PRPX emissions to boost yield early on.
Protocol Treasury receives a cut for maintenance, dev, and buybacks.
Fees are dynamically adjusted based on:
Pool utilization
Market volatility
Risk exposure of LPs (e.g., if skewed long or short)
Risk Mitigation for LPs
Protecting LP capital while maintaining a trustless, permissionless environment is a core design goal of PerpX. Instead of halting trades like centralized platforms, we rely on smart, automated mechanisms to manage risk exposure:
Dynamic Funding Rates Encourage balance between longs and shorts by adjusting costs based on open interest. Helps stabilize pools and avoid skewed exposure.
Position Size Limits Caps on max open interest per asset or per direction (long/short), dynamically adjusted based on pool depth. Prevents whales from overloading a thin market.
Auto-Deleveraging (ADL) When the system is under stress—say, LPs are close to insolvency—profitable positions on the other side may be auto-deleveraged. This is a last-resort mechanism to protect LPs and keep the pool solvent.
Skew-Based Spread Adjustment If longs significantly outweigh shorts (or vice versa), the system can widen spreads on the dominant side to discourage further imbalance and incentivize counter-positioning.
Tiered LP Pools (Future Feature) LPs can opt into low-risk passive pools (fully hedged, lower yield) or more active directional pools (higher yield, more exposure).
All these are smart contract-enforced, fully transparent, and operate without human intervention—ensuring the platform remains decentralized, while still offering robust capital protection for liquidity providers.
Advanced Features
Referral & Affiliate Program
Growth doesn’t just come from ads—it comes from people. PerpX’s referral system rewards users who bring others to the platform. Whether you’re an influencer, a trading group, or just a friend sharing a link, you’ll earn a cut of the trading fees your network generates. It’s a win-win: we grow organically, and you get recurring income.
Trading Fee Rebates & Token Incentives
Traders who actively use the platform or stake PRPX tokens get fee discounts and rebates.
Trade more? Get rebates.
Stake PRPX? Reduce your taker fees.
Hit volume milestones? Get airdrop points and higher-tier incentives.
Multi-Asset Collateral Support
Users can post margin using multiple assets—USDC, ETH, and soon others like BTC and liquid staking tokens.
This improves capital efficiency, reduces the need to swap assets, and gives traders more control over how they manage exposure across markets.
Anti-MEV & Front-Running Protection
On-chain trading often attracts bots that sandwich or front-run trades. PerpX protects users through techniques like:
Off-chain order signing with on-chain confirmation
Delayed reveal mechanisms for sensitive order types
Private mempool integrations to shield large orders from predators
Architecture & Infrastructure
Overview of Execution Model
PerpX uses a hybrid execution model. Users approve transactions on-chain, but orders are matched off-chain through a high-speed engine. This keeps trading fast, affordable, and accurate—while final settlement always happens on-chain.
Order Matching & Settlement on Base
All positions, liquidations, and PnL changes are eventually pushed to Base, where they’re recorded immutably.
This creates a permanent, verifiable ledger of all trades without bottlenecking speed.
Base’s low fees and fast finality make it ideal for perpetuals—giving you CEX speed with L2 trust.
Security Considerations & Smart Contracts
Our contracts are open-source, heavily audited, and modular by design.
Upgradable via time-locked governance proposals
Built-in kill switches (only for critical vulnerabilities, and strictly governed)
Automated tests + live economic attack simulations before each release
Preventing MEV & Front-Running
As mentioned earlier, all user transactions are pre-signed and executed with optional encryption layers and batching tools.
This limits visibility to third-party observers until the trade is confirmed, reducing the window for front-running attacks.
Plus, our smart order routing system can split large trades or use synthetic depth to confuse predatory bots.
Tokenomics
PRPX Token Overview
PRPX is the native token powering the PerpX ecosystem. Designed to fuel long-term protocol growth, incentivize participation, and decentralize governance, PRPX plays a central role across both the initial token swap DEX and the eventual perpetual futures exchange.
Total Supply: 1,000,000,000 PRPX
Initial Circulating Supply at TGE: To be announced closer to launch
Token Standard: ERC-20 (Arbitrum)
Allocation
Category
Allocation
Community Airdrop
10%
Platform Incentives
35%
Foundation Reserves
25%
Team Incentives
15%
Strategic Partnerships
15%
Emissions and Unlock Schedule
To maintain long-term sustainability and prevent supply shocks, the token release will be structured as follows:
Team & Advisors (15%)
Locked for the first 12 months, followed by a linear vesting over the next 36 months. This ensures long-term alignment and prevents short-term sell pressure from contributors.
Strategic Partnerships (15%)
Vested gradually over 24 to 36 months. Specific cliffs or unlocks may be tied to performance, integrations, or growth milestones.
Foundation Reserve (25%)
Partially unlocked at launch to provide flexibility for key initiatives, with the majority time-locked and released over a 48-month horizon to ensure responsible capital deployment.
Community Airdrop (10%)
Distributed in multiple waves—early users, contributors, and ecosystem supporters will be rewarded based on participation metrics. Some airdrops will be gamified through trading quests, staking loyalty, and cross-chain activity.
Platform Incentives (35%)
Allocated for liquidity mining, trading rewards, staking emissions, referral bonuses, and community campaigns. Emissions will follow a decaying schedule over several years to balance early participation with long-term sustainability.
Utilities of PRPX
PRPX isn’t just a speculative asset—it’s embedded into nearly every layer of platform utility and user experience:
Staking:
Earn a share of protocol revenue (fees from trading, liquidations, etc.)
Higher staking tiers unlock exclusive perks and increased rewards
Time-locked staking boosts APY while enhancing protocol stability
Fee Rebates:
Get trading fee discounts based on your staked or held PRPX balance
Tiered rebate structure for increased user retention and token usage
Governance:
PRPX holders will vote on protocol upgrades, fee models, asset listings, and other key decisions
Future DAO integration will fully decentralize control
Incentivized Participation:
Earn rewards through trading, liquidity provision, referrals, and lending
Access exclusive NFT mints, early product launches, and vaults by holding PRPX
Long-Term Vision
PRPX is designed to be more than just a utility token—it’s the foundation of a growing ecosystem. With measured emissions, real utility, and aligned incentives, PRPX will anchor PerpX as it expands into perpetual futures, cross-chain deployments, and beyond.
Points System & Tiered Roles
1. Global Structure
Season length: 90 days (configurable based on platform requirements)
PerpX XP = Trade XP + Liquidity XP + Ecosystem XP
Suggested XP composition:
Trade XP
50–60%
Liquidity/Staking XP
25–35%
Ecosystem XP (social, referrals, content, governance)
10–20% (capped at max 30%)
A mandatory Ecosystem XP cap ensures that XP remains primarily earned through platform usage rather than pure social farming.
2. Tiers & Roles (Seasonal XP)
XP resets each season (90 days). Lifetime XP may be tracked separately for long-term recognition and “OG” tags.
0 – Observer
0 – 999
Connected wallet
1 – Apprentice
1,000 – 9,999
Performed initial platform actions
2 – Degen
10,000 – 49,999
Regular interaction: trades + some staking + referrals
3 – Pro
50,000 – 199,999
High engagement: consistent trades, LP, referrals
4 – Market Maker
200,000 – 999,999
Power user + network influence
5 – Legend
1,000,000+
Whales, strategic partners, ecosystem contributors
Platform roles in Discord/Telegram mirror these tier names.
Future perks (optional roadmap alignment):
Apprentice → Beta access
Degen → Giveaway/raffle boosts
Pro → Fee rebates + private channels
Market Maker → Custom support + campaign privileges
Legend → VIP benefits + access to private pools/allocations
3. On-Chain: Trading XP (Trade XP)
3.1 Base Formula
Let:
V = cumulative trade notional volume (USD) in the current season
Volume is evaluated per $1,000 block
Examples:
$10,000
200 XP
$100,000
2,000 XP
$1,000,000
20,000 XP
3.2 Multipliers (PnL & Behaviour)
PnL Multiplier
≥ +10%
× 1.2
Between -10% to +10%
× 1.0
-25% to -10%
× 0.9
< -25%
× 0.7
Position Holding Time
< 5 min
× 0.7
5–60 min
× 1.0
1–24 hrs
× 1.05
> 24 hrs
× 1.1
This is computed once daily per wallet.
4. On-Chain: Liquidity & Staking XP (Liquidity XP)
4.1 Base LP XP (Per Day)
Let:
L = avg liquidity/staking value in USD per day
Example:
$10,000 LP for 30 days → (10 × 5 × 30) = 1,500 XP
4.2 Lock Multipliers
No lock
× 1.0
30 days
× 1.2
90 days
× 1.5
180 days
× 2.0
Final LP XP Per Day = LP Base XP × Lock Multiplier
Ecosystem XP covers non-trading contributions such as referrals, product feedback, governance voting, and content creation.
To maintain fairness:
5.1 Core Ecosystem Actions (Examples)
Connect wallet
Signature + DB
Join community channels
OAuth/bot validation
Participate in community calls
Attendance + feedback
Submit product feedback
Form submission
Bug reports
Internal severity-based
Content creation
Manual or automated review
Governance voting
Snapshot/custom voting
5.2 Referrals
First referral
800 XP
Must complete defined trade criteria
Multiple referrals (scaled)
800–1500 XP
Tiered based on count
KOL/affiliate
Custom
Handled case-by-case
5.3 Content Contribution
Threads
1,000
Blog Articles
2,500
Videos
5,000
Translations
Case-based
6. Implementation Blueprint
6.1 Data Model
Tables include:
users
trades
lp_positions
referrals
ecosystem_actions
xp_ledger
tiers
XP Engine Flow
Daily cron reads on-chain data
XP recalculated and stored per wallet
Ecosystem actions validated and added
Tier recalculated and synced to UI + community roles
7. Example User Journeys
Casual
~$50k trading + minimal social
Tier 1
Active
~$250k trading + staking + referrals
Tier 2
Power User
$1.5M+ trading + locked LP + ecosystem
Tier 3–4
Protocol Revenue & Fees
PerpX is built to reward activity, loyalty, and long-term protocol alignment. The trading fee model has been designed with flexibility and fairness in mind—ensuring the platform remains competitive for active traders, while also driving sustainable value back to stakers, LPs, and the protocol treasury.
Trading Fee Model
Fees on PerpX are not static. Instead, they adapt based on trading volume and PRPX staking levels. This ensures users who contribute more—either through liquidity, usage, or protocol alignment—are rewarded accordingly.
Fee Type
Base Rate
Maker Fee
0.02%
Taker Fee
0.06%
Liquidation Fee
Dynamic
Funding Spread
20% captured by the protocol
Maker Fees can be reduced to zero for the most active traders and committed stakers.
Taker Fees scale down significantly as trading volume increases or PRPX is staked.
Liquidation Fees are distributed between the protocol and LPs, depending on the liquidation context.
A percentage of funding rate spreads are captured by the protocol to strengthen long-term incentives.
Volume-Based VIP Tiers
Traders are rewarded based on their 30-day rolling trading volume. The higher the volume, the lower the fees.
VIP Tier
30-Day Volume (USD)
Maker Fee
Taker Fee
Tier 1
$0 – $100k
0.020%
0.060%
Tier 2
$100k – $1M
0.015%
0.055%
Tier 3
$1M – $5M
0.010%
0.050%
Tier 4
$5M – $10M
0.005%
0.045%
Tier 5
$10M – $25M
0.002%
0.040%
Tier 6
$25M – $100M
0.001%
0.035%
Tier 7
$100M – $1B
0.000%
0.030%
Tier 8
$1B+
0.000%
0.025%
Free maker trades activate at $100M+ in trading volume.
PRPX Staking Discounts
By staking PRPX, users unlock additional trading fee discounts—stackable with VIP volume tiers. These discounts apply to both maker and taker fees, offering deep value for loyal participants.
Staking Tier
PRPX Staked
Fee Discount
Notes
Tier 1
10,000
10%
Tier 2
25,000
15%
Tier 3
50,000
20%
Tier 4
100,000
25%
Tier 5
250,000
30%
Tier 6
500,000
35%
Tier 7
1,000,000
40%
Free maker trades
Tier 8
10,000,000
50%
Free maker trades
Example: A Tier 7 user (1M PRPX staked) in VIP Tier 5 (taker fee 0.040%) would receive a 40% discount → Final Taker Fee = 0.024%
Maker Fee = 0.000% (free)
Revenue Distribution
Revenue generated from trading activity is distributed across core protocol pillars to ensure sustainability, user incentives, and robust security.
Recipient
Allocation
Use Case
Protocol Treasury
45%
Grants, audits, dev ops, liquidity backstops, future initiatives
PRPX Stakers
30%
Earns proportional share of fees based on amount + duration staked
Liquidity Providers
20%
Compensated for backing leverage and absorbing risk
Security Module
5%
Insurance pool for extreme volatility events and black swan protection
Governance & Decentralization
Role of PRPX Holders in Governance
PRPX isn’t just a utility token—it’s a seat at the table. Holders shape the future of PerpX by voting on upgrades, parameter changes, and how treasury funds are allocated. The deeper your stake, the stronger your say.
Voting Mechanisms
Initially, governance will run via snapshot-based off-chain voting, transitioning into a fully on-chain DAO. Proposals can cover everything from fee structure changes to liquidity incentives and new market listings.
Future DAO Integration
As the platform matures, operational control—including upgrades, grants, and emissions—will shift into the hands of the community. DAO governance will be gradual, structured, and built on transparency and auditability.
Roadmap & Implementation Plan
Phase 1: Core Features & Trading
Perp trading (BTC, ETH pairs)
Market, limit, and stop orders
Margin system (cross + isolated)
Shared orderbook integrations
Phase 2: Staking, Incentives, and Multi-Asset Support
PRPX staking live
Volume-based rebates and affiliate program
Add support for ETH, USDT, stETH as collateral
Native LP pools launched (for top pairs)
Phase 3: Security Enhancements & Advanced Mechanics
AI trade companion
MEV shielding tools
Position size caps, auto-deleveraging
On-chain governance beta
Future Expansion
Solana L2 bridge for cross-chain LPs
Expansion to new perp markets (SOL, MATIC, AVAX)
Interoperability modules for trade routing via external DEXs
Conclusion
Summary of PerpX’s Value Proposition
PerpX is built for traders who want speed without compromise, transparency without friction, and control without custody risk.
It’s the next evolution of decentralized perps—fast, fair, and owned by the people who use it.
Long-Term Vision
We’re building more than a trading platform.
We’re building infrastructure for a financial future that’s programmable, permissionless, and profoundly user-driven.
Call to Action
Whether you’re a builder, trader, LP, or researcher—there’s a place for you at PerpX. Join the community, explore the docs, test the platform, or contribute to governance. This is day zero, and we’re just getting started.
References & Appendices
Cited Models & Inspirations
GMX & GLP architecture
Hyperliquid matching engine
Arbitrum documentation
Chainlink funding rate oracles
OpenZeppelin smart contract standards
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