Pre-Launch Token Futures

Pre-Launch Token Futures are markets for users to trade tokens that have not launched yet. When the token is launched and starts trading on an external exchange such as Binance, the Aevo Pre-Launch Token Future will convert in to a regular perpetual future.

Pre-Launch Token Futures has the following properties that distinguish it from regular perpetual futures on Aevo:

• Initial Margin Rate: 50% (Max 2x leverage)

• Maintenance Margin Rate: 48%

  • (Warning: You may be liquidated soon after opening a position if you attempt to use your entire balance as margin)

• Max Position: 50000 USD (Note: This value is subject to change)

• There is no index price

• There are no funding payments

Contract specs:

• Taker Fee: 25 bps

• Maker Fee: -10 bps rebate

• Liquidation Fee: 5%

• Settlement Asset: USDC

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Pre-launch Conversion to Perpetuals

Pre-launch markets are officially converted into perpetual futures when there is a spot listing on centralized exchanges. When the spot listing occurs, funding rate is introduced in order for the mark price of the market to converge to the index price.

However, there are some occasions where pre-launches have a different expected total supply from what is stated to be the actual total supply. This creates a situation where the price for the pre-launch would be vastly different from the launch price.

To account for this scenario, Aevo would rebase the pre-launch markets to match the actual launch token supply.

Example

For example, an imaginary $COIN's pre-launch market is launched with an expected 1 billion of total supply. It trades at $1 on Aevo. This would mean that traders expect it to trade at 1 billion FDV.

However, $COIN's team decides to launch the token at 10 billion total supply instead of the initial 1b. This means that Aevo would need to rebase the positions to match the new total supply. Below are the steps taken by the exchange:

1. Aevo will announce the date of rebase beforehand with a banner and on on social media.

2. The pre-launch market will pause trading for 30 minutes. User's limit orders are cancelled.

3. The pre-launch market is rebased. All positions in the market would be rebased. Alice holds 10 contracts of $COIN, which is worth $10, at $1 per $COIN. Alice's position would be rebased into 100 contract of $COIN and the mark price of $COIN would also be divided by 10 ($0.1). It is important to note that Alice's notional position does not change from this process.

4. Aevo resumes trading of the market.