# Definition & Vision
Yamata is pioneering a new, dominant design for crypto trading, merging blazing fast order books and advanced order types with a simple, self custodial, on-chain user experience that is made impossibly simple through progressive abstraction.
Yamata utilizes a novel OHX (Optimistic Hybrid Exchange Mechanism) that ensures the integrity of our off-chain matching engine. This system allows Yamata to operate at centralized exchange speeds while maintaining transparent order flow, with continuous validation through decentralized oversight.
The ultimate goal is to empower crypto traders to trade without trade-offs.
# Executive Summary
A fundamental shift is coming to crypto trading. Today, 90% of trading volume happens on centralized exchanges, despite over $24 billion lost to hacks and failures since 2012. The industry demands change, but refuses to compromise on performance. Novice users want more security, but are overwhelmed by the current onchain user experience. Yamata ushers in the Volume Flippening: the inevitable shift of trading volume from centralized to on-chain venues.
Our core innovation, the Optimistic Hybrid Exchange Mechanism, represents a breakthrough in cryptocurrency trading. By combining a high-performance matching engine with a decentralized Guardian Node Network, we've created a system where centralized components are "unable to be evil." This network continuously validates operations, ensuring transparency and security through economic incentives, while maintaining the performance traders demand.
For traders, Yamata delivers true self-custody without sacrificing the advanced features they expect from leading exchanges. Our complete order book suite and professional-grade execution enable sophisticated trading strategies, while our progressive abstraction journey makes the experience as simple as using traditional platforms. Through account abstraction, users can sign up and trade with just an email or passkey to login, while gas abstraction eliminates the complexity of blockchain transactions—no ETH needed for gas, no confusing fee calculations. Our journey toward complete abstraction of blockchain complexity continues with chain abstraction, paving the way for an even more seamless trading experience in the future.
This approach creates a new paradigm where security and performance finally coexist. Every operation is verifiable and backed by decentralized guarantees, yet executed with the speed and reliability traders expect from traditional exchanges.
By solving these fundamental challenges while delivering a Web2-like experience, Yamata represents more than an incremental improvement—we believe it can pioneer the next dominant design in crypto trading, creating the foundation for a future where all crypto trading happens onchain. When that time comes, it will be glorious.
# Why Now: The Crypto Trading Dilema
The CEX dominance Problem
Centralized exchanges control 90% of crypto trading volume. This dominance isn't accidental—it's earned through superior user experience, advanced trading features, and deep liquidity pools that make large trades possible without significant price impact. CEXs offer what traders want: instant deposits, sophisticated order types, and professional-grade interfaces.
But this convenience comes at a devastating cost.
Behind the sleek interfaces and instant trades lies a system built on blind trust. Users surrender their assets to centralized entities, hoping they'll remain solvent and secure. Each trade, each deposit, each withdrawal depends entirely on the exchange's honesty and competence. The model mimics traditional finance—the very system cryptocurrency was designed to disrupt.
This contradiction creates an unsustainable tension. As trading volume grows, so does the honey pot for hackers and the temptation for insiders. Every CEX becomes a single point of failure, a central target in a decentralized ecosystem. The question isn't if this model will fail, but when.
\[Need: Visual comparing CEX market share vs. cumulative losses, highlighting the growing tension between convenience and risk]
# The Trust Crisis
The collapse of FTX in 2022 wasn't an anomaly—it was the latest in a pattern of catastrophic failures. Mt. Gox. QuadrigaCX. FTX. Each name represents billions in lost user funds, shattered trust, and harsh lessons about centralized custody. Over $24 billion lost since 2012, with each incident larger than the last.
These failures expose a fundamental flaw. When exchanges act as custodians, they become gatekeepers of an opaque system. User funds mix in shared wallets. Assets move between hot and cold storage without transparency. The true state of an exchange's finances remains hidden until crisis strikes.
Traditional auditing fails in this environment. Major firms like Armanino and Mazars have abandoned crypto audits entirely. Even "proof of reserves" reports offer false comfort—they show assets without liabilities, like checking a bank's vault while ignoring its loans. In a system built for transparency, the largest trading venues operate in the dark.
# The DEX Dilemma
Decentralized exchanges promised a solution: trade without trust, keep your keys, maintain control. Yet adoption remains limited. Despite the clear need for trustless trading, DEXs handle just 10% of crypto volume. The reason? They solve the trust problem by sacrificing everything else.
Speed becomes the first casualty. Every trade must be verified by the blockchain, creating inherent latency that makes professional trading impossible. Liquidity fragments across multiple DEXs and chains, forcing traders to accept higher slippage or manage complex cross-chain movements. Gas fees turn basic operations into expensive gambles during network congestion.
First-generation hybrid exchanges attempted to bridge this gap, but introduced compromises that undermined their purpose. They moved order books off-chain without proper validation, essentially asking users to trust their centralized components blindly. The result: solutions that were neither fully trustless nor particularly fast, inheriting the weaknesses of both models without capturing their strengths.
# The Yamata Solution
A New Trading Paradigm
The crypto industry has operated on a false choice: trust or performance. Centralized exchanges offer speed but demand custody. Decentralized exchanges provide security but sacrifice efficiency.
This trade-off has become so accepted that the industry stopped questioning it.
Yamata shatters this paradigm.
We've built an exchange that's better than CEX—not by compromising, but by fundamental innovation. Every trade happens at CEX speed, but assets never leave your control. Every operation is verifiable through our Guardian Node Network, creating a system that's transparent by design rather than trust by default. The order flow isn't just visible; it's continuously validated by decentralized oversight.
At the same time, we're faster than DEX by orders of magnitude. Our professional-grade matching engine delivers the advanced order types and execution speed that serious traders demand. Market orders. Limit orders. Stop-losses. Features that were once exclusive to centralized venues now operate in a fully self-custodial environment.
# Progressive Abstraction Journey
Trading shouldn't require a degree in blockchain technology. Our progressive abstraction journey systematically removes complexity while preserving security, starting with the most immediate barriers to adoption.
Account abstraction transforms the onboarding experience. Instead of managing cryptographic keys or navigating complex wallet setups, users sign up with email or social login. Behind the scenes, secure smart contract wallets handle the complexity. The result? The familiar feel of a traditional platform with the security guarantees of blockchain technology.
Gas abstraction eliminates another major hurdle. No more juggling ETH for transaction fees or calculating gas costs. Users trade directly with their assets, while our system handles all blockchain interactions transparently. Trading fees become predictable and straightforward, just as they are on traditional exchanges.
To maximize performance from day one, we're building on Layer-1s that are pushing the limits of transactions per second, finality, and offering near-zero gas fees, such as Monad, Sui, Solana, Polygon, Base and the rest of Optimism Superchain, and EVM-compatible RollApps via Dymension. This foundation, combined with our progressive abstraction journey, sets the stage for future innovations, including seamless cross-chain trading and unified liquidity pools. The final frontier is Chain Abstraction
# Advanced Trading Features
Every successful trade begins with the right tools. Our complete order book suite delivers the foundation:
* Market orders for immediate execution
* Limit orders for precise entry points
* Stop-loss for protection
* And take-profit for disciplined exits.
But in today's markets, basic order types are just the beginning.
**THE FUTURE OF TRADING IS PROGRAMMATIC.**
In traditional markets, algorithmic trading already dominates volume—and crypto is following suit. Yamata leads this evolution with our Programmatic Order Framework, a breakthrough that democratizes sophisticated trading strategies.
Through ERC-1271 smart contract wallets, traders can now:
Programmatic orders represent more than automation—they're your key to finding alpha in an increasingly efficient market. Build strategies that monitor multiple indicators simultaneously. Create custom order types that respond to complex market conditions. Deploy portfolio management systems that execute faster and more precisely than manual trading ever could.
For professional traders, we provide the infrastructure to match these capabilities:
# Trading Fees
### **📊 Understanding Maker vs Taker Orders**
### **💰 Fee Schedule**
Our fee structure rewards higher trading volumes with significantly reduced rates across six tiers:
| **TIER** | **30-DAY TRADING VOLUME** | **MAKER FEE** | **TAKER FEE** |
| ---------------- | ------------------------- | ------------- | ------------- |
| **Tier 0** | Under $100K | 0.10% | 0.20% |
| **Tier 1** | $100K – $5M | 0.05% | 0.10% |
| **Tier 2** | ≥ $5M | 0.04% | 0.08% |
| **Tier 3** | ≥ $20M | 0.03% | 0.06% |
| **Tier 4** | ≥ $50M | 0.01% | 0.03% |
| **Tier 5 (VIP)** | ≥ $100M | 0.00% | 0.02% |
### **🔄 30-Day Rolling Trading Volume**
Your fee tier is determined by your total trading volume over the 30 calendar days, calculated on a rolling basis. This system ensures your fees always reflect your recent trading activity.
#### **How Rolling Volume Works**
* Daily Recalculation: Every day at midnight UTC, the exchange recalculates your trading volume by summing your total activity over the past 30 days.
* Rolling Window: The "30 days" is not a fixed calendar month but a continuously shifting window that moves forward each day.
* Real-time Updates: Your fee tier updates daily based on this calculation, ensuring your trading fees always reflect your current activity level.
\
#### **📈 Practical Example: Alice's Trading Journey**
Alice starts trading on Yamata:
* Days 1-10: Alice trades $40K total volume;
* Days 11-20: Alice trades additional $30K (cumulative: $70K );
* Days 21-30: Alice trades additional $35K (cumulative: $105K ).
**Result**: On Day 30, Alice crosses the $100K threshold and moves from Tier 0 to Tier 1 , reducing her maker fees from 0.10% to 0.05% and taker fees from 0.20% to 0.10%.
**Continuing**: On Day 45, the system calculates Alice's volume from Day 15 to Day 44. If her volume drops below $100K in that window, she returns to Tier 0 until her volume increases again.
### **✅ Benefits of Rolling Volume**
#### **System**
### **🔧 Implementation Details**
* Daily evaluation: Tiers are recalculated at midnight UTC
* Immediate application: New tiers apply to all trades starting the next day
* User dashboard: Current tier and next threshold clearly displayed
Are you a market maker? Apply for preferential market maker rates through our dedicated program. Professional market makers may qualify for custom fee structures beyond our standard tiers.
**Learn more about Market Maker program rates.**
# The Optimistic Hybrid Exchange
The fundamental challenge in crypto trading has been combining centralized performance with decentralized security. Our breakthrough lies in making centralized components "unable to be evil" through cryptographic guarantees and economic incentives.
Here's how:
**A) SYSTEM ARCHITECTURE**
At its core, Yamata operates through a dual-layer design that separates execution from validation. The Sequencer—our high-performance matching engine—processes trades with the speed of centralized systems. Surrounding it, a decentralized network of Guardian Nodes continuously validates every action, ensuring the Sequencer remains honest through cryptographic verification and economic incentives.
This hybrid settlement model enables a unique order flow system. When users place trades, orders follow two parallel paths:
* Method A: Direct submission to the Sequencer via WebSocket/REST API for immediate processing
* Method B: Simultaneous submission onchain and to IPFS, creating an immutable public record
Every 10 seconds, the Sequencer groups processed orders into epochs, publishing Merkle tree roots on-chain. This creates cryptographic commitments that Guardian Nodes can verify against the IPFS records, ensuring the Sequencer processes orders exactly as they were received.
**This architecture delivers unprecedented guarantees:**
* Centralized speed with decentralized oversight
* Cryptographic proof of order execution
* Transparent yet efficient settlement
* Economic incentives for system integrity
# The Guardian Node Network
The backbone of Yamata's security is our decentralized network of Guardian Nodes—independent validators that continuously monitor the Sequencer's operations. Each Guardian Node is powered by community members who stake their commitment through non-transferable NFT licenses, creating a robust network of motivated watchers.
When a Guardian Node detects a potential issue, it compares the Sequencer's Merkle tree root with the IPFS order data. Discrepancies trigger an evidence-based challenge process that requires consensus from multiple nodes, preventing both manipulation by the Sequencer and frivolous challenges by individual nodes.
* Operating a Guardian Node is accessible to all:
* Self-host for complete control
* Use Virtual Private Servers (VPS) for managed infrastructure
* Delegate to Node-as-a-Service (NaaS) providers for automated operation
The network's economic model ensures active participation. Nodes earn base rewards for successful monitoring, plus a share of transaction fees. A reputation system tracks performance, impacting both reward rates and slashing penalties. Most importantly, the Guardian Network creates a powerful incentive structure: Yamata risks losing 14 days of revenue if the Sequencer misbehaves, while nodes split this reward pool for successful challenges.
# Challenge & Security Mechanism
Trust is enforced through code and economic incentives. When a Guardian Node detects a discrepancy—like orders executed out of sequence or missing from an epoch—it initiates a challenge. But random accusations aren't enough; our system demands rigorous proof.
This multi-stage validation creates a powerful security mechanism. False challenges result in slashed stakes and temporary exclusion from the network. Valid challenges unlock the Sequencer's locked fees—14 days worth of revenue—distributing them to the challenging nodes. This creates a Mexican standoff: Yamata is incentivized to keep the Sequencer honest to retain revenue, while nodes compete to catch any misbehavior.
The reputation system adds another layer of security:
* Nodes start at 100 points
* Successful validations increase score
* Failed challenges and downtime reduce it
* Higher reputation means better rewards and lower slashing risk
# Trading without Trade-offs
Every innovation in Yamata's architecture serves a single purpose: enabling traders to access professional-grade features without sacrificing self-custody. This isn't just about combining CEX and DEX features—it's about creating an experience that makes the distinction irrelevant.
**A) SIMPLIFIED TRADING EXPERIENCE**
Blockchain complexity shouldn't stand between traders and their strategies. We've rebuilt the crypto trading experience from the ground up, starting with onboarding. Email login creates your self-custodial wallet instantly—no seed phrases, no wallet downloads, no confusion. Your assets remain under your control, but the complexity stays hidden.
Behind this simplicity lies a professional-grade trading interface. Advanced charting tools help spot opportunities. Real-time market depth visualizes liquidity. Portfolio analytics track performance across assets and strategies. Everything professional traders expect, presented in a familiar format that makes blockchain trading feel natural.
b) **TRADING FEATURES & TOOLS**\
Modern trading demands more than basic swaps. Our order suite starts with the essentials:
* Market orders for immediate execution
* Limit orders for price targets
* Stop-loss and take-profit for risk management
But Yamata's power reveals itself through advanced capabilities. Programmatic orders automate complex strategies—monitor multiple indicators, execute based on custom conditions, manage entire portfolios automatically. Build custom order types that combine price, time, and on-chain data triggers. Deploy algorithmic strategies through our comprehensive API.
For institutions and power users, we provide the infrastructure to match:
* WebSocket feeds for real-time data
* REST endpoints for order management
* Comprehensive onchain and market data access
* Custom strategy deployment tools
**C) LIQUIDITY & EXECUTION**
Deep liquidity and reliable execution form the foundation of any serious trading venue. Through smart order routing and liquidity aggregation, Yamata ensures your trades execute at the best available prices. Our integration with 0x Protocol connects traders to multiple liquidity sources through a single interface, while protecting them from predatory MEV extraction.
But liquidity means nothing without the power to access it.
Our Centralized Limit Order Book Sequencer operates at unprecedented speed:
By building on Monad, Solana, SUI or Dymension Rollapps, we're pushing these boundaries even further:\
This combination—deep liquidity, lightning-fast execution, and next-generation blockchain infrastructure—creates a trading environment that doesn't just match centralized exchanges, but exceeds them. All while maintaining the security guarantees of decentralized systems.
# Security and Incentives
Traditional exchanges ask traders to trust their operations. Yamata replaces trust with cryptographic guarantees and economic incentives that make malicious behavior more expensive than honest operati
**A) TRUST ARCHITECTURE**
Our optimistic security model assumes honest operation but verifies everything. Every trade, every order, every execution is subject to permissionless validation by the Guardian Network. Like a decentralized audit system, it ensures transparency without sacrificing performance.
The Guardian Network provides continuous oversight through multiple layers:
* Real-time monitoring of order execution
* Verification of epoch commitments
* Challenge capabilities for any discrepancy
* Economic penalties for misbehavior
This creates a system that's "unable to be evil"—not through blind trust, but through mathematical guarantees and aligned incentives.
**B) ECONOMIC MODEL**
Our fee structure aligns interests across all participants:
* Maker/taker model rewards liquidity provision
* Volume-based tiers encourage active trading
* Clear fee distribution creates predictable economics
Transaction fees flow through a carefully designed distribution:
* 10% to Guardian Nodes for validation
* 10% to Yamata for operations
* 20% to Future Reward Pool
* 60% to Treasury (locked for 14 days)
Guardian Nodes earn through multiple streams:
* Base rewards for active validation
* Share of transaction fees
* Substantial rewards for catching discrepancies
* Opportunity to claim
* Yamata's locked revenue on successful challenges
**C) REPUTATION SYSTEM**
Guardian Node effectiveness is tracked through a dynamic reputation system:
* All nodes start with 100 base points
* Successful validations increase score
* Failed challenges reduce points Inactivity causes score decay
Reputation directly impacts operations:
* Higher scores mean lower slashing risk (5-100% range)
* Better reputation enables longer validation windows
* Reward multipliers scale with reputation
* Exclusion periods for low scores (3 hours to 7 days)
This comprehensive security model creates a self-reinforcing cycle: Guardian Nodes are incentivized to catch manipulation, while Yamata is incentivized to operate honestly to retain revenue. The result is a system where security emerges from economic rationality rather than trust.
# The Path to Volume Flippening
The crypto trading landscape stands at a tipping point. While centralized exchanges still handle 90% of volume, recent failures have created an unprecedented opportunity. Traders want the performance of CEX with the security of DEX. The market is ready for a new dominant design.
**A) MARKET EVOLUTION**
The current landscape reveals a stark reality: centralized exchanges maintain their dominance through superior user experience and professional features, despite the existential risks they pose to user funds. Decentralized exchanges, while solving the trust problem, haven't captured significant volume because they can't match the trading experience professionals demand. This creates a clear opportunity for innovation.
Our path to the Volume Flippening—the inevitable shift of trading activity from centralized to on-chain venues—follows a carefully crafted adoption strategy. We begin with professional traders, offering them the advanced features and deep liquidity they require, wrapped in an interface that feels familiar but offers unprecedented security guarantees.
As our liquidity grows, we'll expand to retail traders through our revolutionary account abstraction system, making self-custodial trading as simple as using a traditional exchange. Community building stands at the center of this expansion—educational resources, trading competitions, and developer programs will create a vibrant ecosystem around the platform.
This strategic approach ensures that each group of users enhances the experience for others: professional traders provide liquidity, retail users increase volume, and developers expand platform capabilities. Together, they create the network effects necessary to challenge centralized exchange dominance.
**B) TECHNICAL ROADMAP**
Our technical evolution mirrors our market strategy, with each phase building toward the Volume Flippening. The journey begins with core infrastructure that makes centralized exchanges obsolete.
Near-term development focuses on three critical areas. First, we're expanding our core feature set—enhancing the Guardian Node Network, refining our programmatic order capabilities, and deepening our liquidity pools. Performance optimization follows, as we push the boundaries of what's possible through our Monad integration, ensuring our matching engine maintains its speed advantage while scaling to greater volume.
Strategic partnerships will amplify these capabilities. By integrating with key infrastructure providers and liquidity sources, we'll create a network effect that makes Yamata the natural home for serious traders. Each partnership extends our reach and enhances our offering.
Looking further ahead, our innovation pipeline targets the fundamental challenges of crypto trading. Enhanced abstraction layers will make blockchain interaction invisible to users while maintaining security guarantees. Advanced trading features will push beyond traditional exchange capabilities, enabling strategies that weren't possible before.
The ultimate vision emerges through our cross-chain roadmap. Beginning with Monad and a Dymension Rollapp, and expanding across major EVM L2s, Solana and SUI, we're building toward complete chain abstraction—a future where traders access any asset on any chain through a single, unified interface. This isn't just about connecting chains; it's about making chain boundaries irrelevant to the trading experience.
**C) VISION REALIZATION**
The path to bringing trading volume on-chain requires more than technology—it demands a thriving ecosystem. We're building Yamata as a platform that developers can extend, traders can enhance, and communities can embrace.
Our ecosystem development begins with deep protocol integrations. By connecting with leading DeFi protocols, we create new opportunities for traders while expanding platform capabilities. Developer tools and SDKs will make it simple to build on Yamata—whether creating new trading strategies, designing custom interfaces, or integrating our features into other platforms.
Community sits at the heart of this growth. Through hackathons, trading competitions, and educational initiatives, we'll nurture a new generation of traders and builders who understand the power of self-custodial trading and a stellar trading experience. Our grant program will fund innovations that push the boundaries of what's possible on Yamata.
The volume migration to on-chain trading won't happen overnight—it will build momentum through network effects. Each new trader adds liquidity, each new integration expands possibilities, and each new feature attracts more participants. Our liquidity bootstrapping program, combining incentives with professional market makers, ensures deep liquidity from day one.
This is how the Volume Flippening becomes inevitable: not through a single breakthrough, but through the combined force of better technology, stronger incentives, and a vibrant community all pushing in the same direction.
# Perpetual Futures
Overview
Yamata’s Perpetual Futures (Perps) allow you to speculate on an asset’s price with leverage, without any expiry date. This section provides an overview of Yamata’s Perps product and how to get started.
# Key Features
* **Cross-Margin System**: All perpetual positions share a single cross-margin account. Your entire Perps account balance acts as collateral for all trades, maximizing capital efficiency. There is no isolated margin by default – profits in one position can offset losses in another automatically.
* **USDC Settlement**: All contracts are linear and denominated in USDC. Trade BTC, ETH, and other assets with profits and losses settled in USDC stablecoin. Quoting and margin in a stable currency simplifies accounting and reduces volatility of your collateral.
* **Multi-Collateral Support**: While USDC is the primary settlement asset, Yamata Perps allow using multiple assets (e.g. USDT, ETH) as collateral. Non-USDC collateral is assigned a haircut (discounted value) for risk management. The system automatically converts collateral values to USDC-equivalent when calculating your margin and P\&L.
* **Leverage Trading**: Perpetuals enable amplified exposure through leverage. You can go long (bet on price increase) or short (bet on decrease) with leverage up to the maximum allowed per asset. This means you can open larger positions than your collateral would allow in spot trading, increasing potential profit (and risk) significantly.
**Getting Started with Yamata Perps**
1. **Transfer Collateral to Perps Wallet**: Before trading, move funds into your Perpetuals account. In the Yamata app, navigate to your wallet and use the Transfer function to allocate assets (USDC or other supported collateral) from your Spot wallet to your Perps wallet. This on-chain transfer establishes your margin balance for perpetual trading. (Likewise, you can transfer unused funds back to Spot at any time.)
2. **Select a Market**: Go to the Perpetuals trading interface and choose the market you want to trade (e.g., BTC-PERP for Bitcoin/USDC perpetual). The interface is similar to spot trading, with a live order book, price chart, and trading panel.
3. **Set Leverage (if applicable):** Yamata’s cross-margin system will automatically apply available leverage based on your position size and collateral. You may have an option to adjust leverage or it may be derived from the order size relative to your equity. Ensure you understand the implications: higher leverage uses more of your available margin and increases liquidation risk.
4. **Place an Order**: Choose an order type (Market or Limit – see Perpetual Order Types for details). Enter the order details:
1. For Market Orders, input the position size (in contracts or USD value) you wish to buy/sell. The order will execute immediately at the best available price.
2. For Limit Orders, specify the price and size. Your order will rest in the order book until the market trades at your price.
3. You can also set advanced options like Reduce-Only to ensure the order only closes existing positions, or use Stop Orders to automate entry/exit (explained later).
5. **Monitor Positions**: Once your order fills, a Position is opened. You can track it in the Positions panel, which shows entry price, size, unrealized P\&L, margin used, and liquidation price. Yamata continuously updates your unrealized P\&L based on the current mark price of the contract.
**Closing Positions:** To realize profits or cut losses, place an opposite order of the same size (or use the Close button if available). You may use market orders for immediate exit or limit orders to target a specific close price. If you set stop-loss or take-profit orders, they will trigger automatically to close your position at the predefined levels.
# Margin & Collateral
Effective margin management is crucial for perpetual futures trading. This page explains Yamata’s cross-margin system, how collateral works (including using multiple asset types), and how the platform handles collateral valuation and transfers.
#### Cross-Margin System
Cross-margin means all your open positions draw from one shared margin pool, rather than isolating margin per position. Key points:
* **Unified Margin Account**: When you trade on Yamata Perps, you have a single margin account (your Perps wallet balance) that backs all positions. Gains in one position can immediately offset losses in another because the collateral is shared.
* **Capital Efficiency**: Cross-margin maximizes your capital usage. Unused equity in the account automatically provides cushioning for any position that moves against you. This reduces the likelihood of liquidation compared to isolated margin (where each position’s collateral is separate).
* **No Manual Allocation**: You do not need to assign specific collateral to each new trade – as long as you have available margin in your Perps account, you can open positions. The platform will calculate margin requirements and ensure your overall account meets the necessary thresholds (initial and maintenance margins).
* **Unified PnL Settlement**: All profit and loss from your trades accrue to the same account balance. If one trade is profitable and another loses, the net P\&L is what matters for your account equity.
**Note**: Yamata currently supports only cross-margin mode for Perpetuals. In the future, isolated margin may be introduced for those who want to limit risk per position, but cross-margin is the default and only mode at launch.
#### Multi-Collateral Support
Yamata allows multiple asset types to be used as collateral for Perps, giving you flexibility beyond just USDC. You can deposit supported assets (for example, USDC, USDT, ETH) into your Perps account. The system will automatically convert and discount these collateral values for margin calculations:
* **Supported Collateral Assets**: Initially, USDC (USD Coin) is the primary margin asset. Additionally, assets like USDT, ETH, and other major coins may be enabled as collateral. All collateral is held in your Perps smart contract wallet.
* **Collateral Weight & Haircuts**: Each non-USDC asset has a collateral weight (or haircut factor) based on its risk profile. For instance, a relatively stable asset like USDT might have a 100% weight (no haircut) or slightly less, while a more volatile asset like ETH might be given a weight like 90%. This means if you deposit $100 worth of ETH, only $90 counts toward your usable collateral. More volatile or less liquid assets have larger haircuts to protect the system from rapid value swings.
* **USDC as Reference**: All collateral values are standardized in USDC terms. Yamata continuously uses market prices (index prices) to determine the USDC equivalent value of your non-stablecoin collateral. This Collateral Value is updated in real time as prices change.
* **Automatic Conversion for P\&L**: Because all trading profits/losses settle in USDC, if you realize a loss and do not hold enough USDC in your collateral mix, the platform will automatically swap some of your non-USDC collateral into USDC to cover that loss. This ensures your account’s obligations are met in USDC. For example, if you only have ETH as collateral and you incur a loss of 500 USDC on a trade, Yamata’s smart contracts will convert the needed amount of ETH into USDC (using oracle or DEX pricing) to realize the loss.
* **Manual Conversion**: You can manually convert collateral assets within your account if you wish to adjust your composition (for instance, converting some of your deposited ETH into USDC for more stable collateral). However, Yamata’s system generally handles conversions only as needed for settlement or risk (see Risk Engine below for auto-conversion thresholds).
#### Managing Collateral Transfers
* **Depositing Collateral**: To add margin, transfer assets from your Spot wallet to your Perps wallet via the Yamata interface. This is an on-chain transaction moving funds into the Perpetuals smart contract. Once confirmed, your Available Balance for trading increases accordingly. Ensure you deposit approved collateral types; unsupported assets must be swapped to a supported asset (e.g., via Yamata’s spot trading or externally) before transferring.
* **Withdrawing Collateral:** If you want to free up funds, you can transfer assets back from the Perps wallet to your Spot wallet. However, you must maintain enough collateral to support any open positions. Yamata will prevent withdrawals that would drop your account below the required maintenance margin. Typically, you should close positions or reduce leverage before pulling collateral out.
#### Initial & Maintenance Margin
Whenever you open a position, the system calculates Initial Margin required. This is the amount of collateral that will be tied up to support the new position:
* **Initial Margin**: The minimum collateral needed to open a position. It’s determined by the notional size of your position and the leverage. For example, opening a $10,000 position at 10× leverage requires $1,000 initial margin (which is 10% of notional). Higher leverage means smaller initial margin per contract (e.g., 50× leverage requires only 2% of notional as margin). The platform will automatically allocate this from your available balance when you place an order.
**Maintenance Margin**: Once a position is open, you must maintain a smaller amount of collateral per position to keep it from liquidating. Maintenance margin is typically a percentage of the position value (for example, 50% of initial margin requirement). If your account equity falls below the total maintenance margin required for all positions, you risk liquidation. Yamata’s risk engine constantly checks this (see Risk Engine & Liquidation section for details).
# Perpetual Contract Mechanics
This section covers how perpetual futures work on Yamata at a fundamental level, including leverage mechanics, calculating P\&L, funding rates, and how mark pricing keeps contracts tethered to real markets. Understanding these will help you trade Perps more effectively and safely.
#### Leverage and Position Notional
Leverage allows you to control a larger position with a smaller amount of capital (margin). In Yamata Perps:
* **You can select a leverage up** to the maximum allowed for the asset (see Markets & Leverage for specific limits). For example, at 10× leverage, every 1 USDC of margin lets you open 10 USDC worth of position.
* **The Position Notional Value** is the size of your position in USDC terms. If you go long 0.1 BTC at $30,000, your position notional is $3,000. With 10× leverage, that $3,000 position would require only \~$300 in collateral initially.
* **Adjusting Leverage**: Yamata uses cross-margin, so you don’t manually set a per-trade leverage value in the UI; instead leverage is implicitly determined by how large a position you take relative to your account equity. You could effectively use higher leverage by opening a very large position with minimal available margin, or lower leverage by keeping positions small relative to your collateral. The platform may provide a slider or info showing what fraction of your collateral is used — which corresponds to effective leverage. Always be mindful: higher effective leverage = higher risk of liquidation.
* **Effect of Leverage on Margin**: Required margin = Position Notional / Leverage. If you double your position size (while collateral stays same), you’re effectively doubling your leverage usage. Yamata will not allow you to open positions that exceed the maximum leverage or your available balance. If you try to take on too large a position, the order may be rejected or partially filled to stay within margin limits.
#### Profit and Loss (P\&L)
Perpetual P\&L calculation works as follows:
* **Unrealized P\&L**: As the market price moves, your open position gains or loses value on paper. For a long position, unrealized P\&L = (Current Mark Price – Entry Price) × Position Size. For a short position, P\&L = (Entry Price – Current Mark Price) × Position Size. Yamata continuously updates this using the Mark Price of the contract (see below). Unrealized P\&L affects your margin equity in real time.
* **Realized P\&L**: This is locked-in profit or loss. It occurs when you close a position (fully or partially) or when funding fees are applied. For example, if you bought 0.1 BTC-PERP at $30k and later sold at $32k, you realize $200 profit (0.1 \* $2k). Realized P\&L immediately adjusts your account balance in USDC. Similarly, any portion of your position closed by the liquidation engine or via stop orders will realize P\&L at that execution price.
* **P\&L Settlement in USDC**: All profits and losses are settled in USDC. If you end a trade with more USDC than you started, that’s your profit. If less, that’s your loss. Yamata does this automatically; if you were using non-USDC collateral, it will convert as needed (e.g., adding to your USDC balance on profit, or selling some collateral to cover losses).
* **Example**: You have 500 USDC in collateral and no positions. You go long 1 ETH-PERP at $1,500 using 5× leverage (so position = $1,500 notional, margin used \~ $300). If ETH’s mark price rises to $1,600, unrealized P\&L = $100 (1 ETH \* $100 gain). Your equity is now $600. If you close the position at $1,600, you realize $100 profit and your USDC balance becomes $600. If price fell to $1,400 instead, you’d have –$100 unrealized (equity $400), and closing would leave you with a realized loss, ending with $400.
#### Mark Price and Index Price
Yamata uses an Index Price and Mark Price to ensure fair P\&L and liquidation calculations:
* **Index Price**: The index price is a composite price of the underlying asset derived from major spot markets or oracle feeds. It reflects the true market value of the asset (e.g., the current global price of BTC in USD).
* **Mark Price**: The mark price is the price at which P\&L and liquidation thresholds are calculated for the perpetual contract. It is typically derived from the index price plus a decaying premium or discount based on the contract’s funding rate. The mark price protects against market manipulation: even if the order book price spikes briefly, your P\&L is based on the more stable mark price. For example, if BTC-PERP is trading at 0.5% above the index, a funding rate will be in effect (longs paying shorts) to bring it in line. The mark price might be kept closer to the index to avoid unfairly liquidating traders just because of a brief premium/discount.
* **Last Traded Price vs Mark Price**: The last traded price is just the most recent execution on Yamata’s order book. The mark price may differ slightly. Yamata displays the mark price on the interface and uses it for margin calculations. Always pay attention to the mark price, as it’s what determines your unrealized P\&L and liquidation risk.
#### Funding Rates
Perpetual futures require a mechanism called funding to tether their price to the underlying index, since they never expire:
* **What is Funding?** Funding is a periodic payment exchanged between longs and shorts based on the difference between the perpetual contract price and the true market price. If the perpetual is trading above the index (i.e., longs are pushing price higher than spot), a positive funding rate occurs and longs will pay shorts. Conversely, if the perp trades below the index, funding is negative and shorts pay longs. This incentivizes traders to take the opposite side and brings the perp price back in line.
* **Frequency**: Yamata’s funding payments are applied at regular intervals (for example, every hour or every 4 hours, depending on the market). The funding rate is quoted as an annualized percentage but charged in each interval on your position notional. The countdown timer and next funding rate for each market are visible in the interface.
* **Calculation**: At the funding timestamp, if you hold a position, you will pay or receive funding. The amount = (Position Notional) × (Funding Rate). For instance, if you are long $10,000 BTC-PERP and the hourly funding rate is 0.01%, you’d pay $1 in funding to a short holder (and vice versa if rate is negative, you’d receive $1). Yamata automatically credits or debits this from your USDC balance. Note that paying funding will slightly decrease your account equity over time (if you’re on the paying side), and receiving funding increases it.
* **No Fees to Platform**: Funding is a peer-to-peer flow; Yamata doesn’t collect it as a fee. It’s exchanged among traders to balance the market.
* **Monitoring Funding**: You can monitor the current funding rate and history in the market info. If funding rates are high (positive or negative), it’s often due to heavy long or short bias in the market. Traders should factor funding costs into their strategy, especially if holding positions for long durations.
#### Perpetual Contract Lifecycle
* **No Expiry**: Unlike traditional futures, perpetual contracts don’t have an expiration date. Your position can remain open indefinitely as long as you have sufficient margin to maintain it. This is great for long-term hedges or leveraged bets, but remember that funding payments over time can add up.
* **Contract Unit**: Yamata’s perps are linear contracts, meaning 1 contract typically corresponds to 1 unit of the underlying asset (e.g., 1 BTC-PERP = value of 1 BTC in USDC). This makes P\&L calculation intuitive. Some smaller assets may use a scaling factor (like 1000 units of an altcoin per contract) for convenience, but the principle is the same and will be indicated if so.
* **Order Matching**: Orders are matched on the CLOB just like spot trades. Maker orders rest in the book, taker orders execute immediately against available orders. Even though settlement is in USDC, the trading pairs are labeled as \-PERP (with USDC implied as the quote currency).
* **Fees**: Trading fees for perps are typically a small percentage of notional, charged in USDC. Yamata will have a maker/taker fee schedule (to be detailed separately). Fees are deducted from your account at order execution. Ensure you maintain a bit of extra collateral to cover fees and funding beyond just the position margin.
By understanding leverage effects, P\&L calculations, mark pricing, and funding, you’ll be better equipped to manage your perpetual trades on Yamata. Next, we’ll cover Order Types available in perpetual trading, including advanced options like stop orders and reduce-only flags that help execute your strategy precisely.
# Perpetual Order Types
Yamata’s perpetual trading supports a variety of order types to accommodate different trading strategies and risk management techniques. This page describes each order type and related options (reduce-only, triggers, etc.), so you can choose the appropriate order for your needs.
#### Market Orders
Market Order executes immediately against the best available prices in the order book:
* **Use Case**: Use market orders when you need quick execution and are willing to accept the current market price. For example, if you need to exit a position rapidly or enter a position during fast market moves.
* **How it Works**: You specify the quantity (size of the position to buy or sell). The order will fill at the best bid/ask prices available. If your order is larger than the top of the book, it will sweep multiple levels, potentially incurring slippage (the difference between expected price and average fill price).
* **Considerations**: Market orders pay taker fees since they remove liquidity. In very volatile or illiquid markets, slippage can be significant – your execution price may be worse than the last traded price you saw. Always check the order book depth if possible before placing a large market order.
#### Limit Orders
Limit Order lets you specify a price at which you want to buy or sell:
* **Use Case**: Use limit orders when you have a target entry or exit price and can wait for the market to come to you. For example, if BTC is $30,000 and you want to buy on a dip at $29,500, place a buy limit at $29,500.
* **How it Works**: You set the price and quantity. The order will rest on the order book if it’s not immediately executable. A buy limit will only execute at your limit price or lower (good for getting a better price), and a sell limit executes at your price or higher.
* **Maker vs Taker**: If your limit order immediately matches with existing orders (e.g., you place a buy limit above the current ask), it will execute as a taker order. If it rests, it becomes a maker order, earning maker fee rebates or lower fees. Yamata likely offers incentives for maker orders (as seen in the rewards program).
* **Time in Force Options**: By default, limit orders remain open until filled or canceled (“Good-Till-Canceled”). Yamata may support additional options:
* **Immediate-Or-Cancel (IOC)**: fill what you can immediately, cancel the rest.
* **Fill-Or-Kill (FOK)**: either fill the entire order immediately or cancel it (no partial fills).
* **Post-Only**: ensure the order only posts to the book (does not take liquidity immediately). If it would execute instantly, it will cancel instead. This guarantees you get maker fees.
#### Stop Orders (Stop-Limit and Stop-Market)
Stop Orders are conditional orders that activate only when the market reaches a specified trigger price. They are crucial for risk management (stop-loss) and for breakout entries.
* **Stop-Loss (Protective Stop)**: An order to close a position if the market moves against you beyond a threshold. For example, if you’re long ETH at $1,500, you might set a stop sell at $1,400 to limit your loss if price drops.
* **Take-Profit Order**: Essentially the opposite of a stop-loss, it triggers to secure profit. E.g., if short BTC at $30k, you might place a buy stop at $27k to lock in profit if it falls to that level (this is sometimes called a take-profit stop).
Yamata supports two types of stop orders:
* **Stop-Market Order**: When trigger price is hit, it sends a market order. This ensures the order will execute (assuming market is available) but the fill price may slip past the trigger if the market is moving fast.
* **Example**: BTC is $30,000. You have a long position and set a stop-market at $29,000. If BTC drops to $29,000, a market sell is triggered for your position size, exiting at whatever price available around that level.
* **Stop-Limit Order**: When triggered, it places a limit order at a predefined price (the limit price can be same as trigger or a bit worse to improve chances of fill).
* **Example**: BTC is $30,000. Set a stop-limit with trigger $29,000 and limit price $28,900. When $29,000 is hit, a limit sell at $28,900 posts. This gives a price floor so you don’t sell too far below $29k, but carries risk it might not fill if price plunges quickly below $28,900.
**Trigger Conditions**: Yamata likely uses the Mark Price or Last Price to decide when a stop is triggered. Using Mark Price is safer to avoid triggering on a momentary wick. The documentation will clarify, but assume mark price triggers stop-loss to avoid unnecessary activations due to temporary spikes.
### Using Stop Orders:
* Set a Stop Price (trigger) and an Order Price (for stop-limit) along with the size and side (sell for long position stop-loss, buy for short cover).
* Ensure the stop order is set in the correct direction. A common mistake is placing a stop order on the wrong side of the book. E.g., for a long, you want a sell stop below the entry; for a short, a buy stop above the entry.
* When the condition is met, the system will automatically submit your order. You can view active stop orders in the Triggers or Stop Orders tab in the interface.
#### Reduce-Only Orders
Reduce-Only is a flag you can apply to an order (market or limit) to ensure it only decreases or closes your existing position, and never opens or adds to a position.
* **Use Case**: This is especially useful for stop-loss or take-profit orders. For instance, if you have a long position of 5 ETH, you might place a sell limit at a higher price to take profit and a sell stop to cut loss. Marking them as reduce-only guarantees that if one of them executes (closing your position partially or fully), the other won’t accidentally open an opposite position if it later triggers. It will simply cancel if there’s no position left to reduce.
* **Behavior**: A reduce-only order will be rejected or adjusted by the engine if it would increase your position in the given direction. It only executes up to the size that offsets your current position.
* **Example**: You are short 2 BTC. You place a buy limit for 3 BTC as a take-profit, marked reduce-only. If only 2 BTC are needed to flatten your position, the order will only fill 2 BTC and then cancel the remainder.
* **Setting Reduce-Only**: In the order panel or API, there’s an option to flag an order as reduce-only. Typically, you’d do this for exit orders that you set in advance. It’s good practice to mark stop-loss and take-profit orders reduce-only to avoid over-exposure due to multiple orders.
#### Order Execution Examples
* **Entering a Position**: You want to long 1000 USDC worth of BTC-PERP at the current price quickly. You place a market buy for 1000 USDC (or equivalent BTC quantity). The order executes against current asks, you pay a taker fee, and you now have a long position. Alternatively, if you wanted to potentially get a better price, you could place a limit buy at a slightly lower price, which might or might not fill.
* **Exiting with Take-Profit and Stop-Loss**: You long 5 ETH-PERP at $1,500. Immediately, you set:
* **A sell limit order at $1,650 for 5 ETH (take-profit)** – maker order resting above current price.
* A sell stop-market order at $1,400 for 5 ETH (stop-loss) – resting condition below.
* **Mark both as reduce-only**. Whichever hits first will close your 5 ETH. Say the price rallies to $1,650: your limit hits, you sell 5 ETH, locking profit. The stop order at $1,400, being reduce-only, is automatically cancelled once your position is gone. If instead price had dropped to $1,400 first, the stop triggers a market sell, closing the position, and the $1,650 limit then cancels.
* **Partial Fills**: If you place a large order, it might fill in pieces. For example, you place a limit buy for 10 BTC-PERP, but only 3 BTC are available at or below your limit price initially. You’ll get 3 BTC filled, and 7 BTC remain on the book until more sellers come down to your price. Your open order will show 7 BTC remaining. You can cancel it anytime. The filled 3 BTC start accruing P\&L as an open position.
* **Cancelling Orders**: You can cancel any resting order (limit or stop) that hasn’t fully executed. Once cancelled, the reserved margin for that order is freed up. Market orders usually either fill immediately or fail (there’s nothing to cancel since they’re instantaneous).
Remember that smart usage of order types can greatly enhance your trading strategy and risk management:
* Use limit orders to control entry price and potentially earn maker rewards.
* Use stop orders to cap your downside and secure profits when you’re away from the screen.
* Always set reduce-only on opposing orders (like stops and targets) for safety.
Next, we’ll explore Yamata’s Risk Engine & Liquidation process, so you know how margin requirements are enforced and what happens if markets move against your leveraged positions.
# Risk Engine & Liquidation
Yamata’s risk management engine continuously monitors all perpetual positions to protect traders and the platform from excessive losses. It’s vital to understand how your margin health is calculated (e.g. Margin Ratio or LTV) and what triggers a liquidation. This section explains those concepts and the liquidation process step-by-step.
#### Margin Ratio and LTV
Margin Ratio and Loan-to-Value (LTV) are two sides of the same coin for evaluating your account health:
* **Margin Ratio (Percent Margin Level):** Often defined as (Account Equity / Maintenance Margin Requirement) \* 100%. A margin ratio of 100% means your equity exactly equals the minimum required – you are on the edge of liquidation. Above 100% is safe; below 100% would mean equity isn’t even covering maintenance requirement (which typically shouldn’t happen because liquidation will trigger as you approach 100%).
* **Loan-to-Value (LTV)**: Expresses risk as the portion of your collateral that is effectively utilized/at risk. Yamata defines LTV as the ratio of your “liabilities” (negative P\&L and any borrowed amounts) to the total collateral value.
* If you have only USDC collateral, LTV starts at 0 when you have no positions, and increases as you incur losses or withdraw collateral.
* If you use non-USDC collateral, opening a position might be akin to borrowing USDC against that collateral, raising LTV.
* **A lower LTV =** safer (lots of collateral for little exposure). Higher LTV = risky (you’ve used most of your collateral’s value to support positions).
These metrics move inversely: when margin ratio goes down, LTV goes up, and vice versa. Yamata primarily uses LTV internally to gauge risk due to multi-collateral complexity.
**Account Equity**: It’s important to know how we define equity:
* **Equity = Total Collateral Value (after haircuts) + Unrealized P\&L (which can be negative or positive) + any Funding credits/debits accrued.**
* Collateral value for each asset = quantity \* index price \* weight. Sum of those plus your USDC balance gives total collateral value in USDC terms.
**Maintenance Margin Requirement**: This is the minimum margin needed for your open positions. It’s calculated from position notional \* maintenance margin rate. For example, if maintenance margin is 2.5% of position size, a $10,000 position requires $250 in equity to avoid liquidation. Yamata might have tiered maintenance rates, but conceptually a fixed percentage per asset or per leverage tier.
#### Liquidation Thresholds
Yamata’s risk engine will take action as your LTV approaches critical levels:
* **Initial Margin vs Maintenance Margin**: When you open positions, you must have the initial margin (e.g., 5% for 20× leverage). Maintenance margin might be lower (e.g., 2.5%). As long as your equity stays above maintenance margin, you’re safe. If losses accumulate and equity falls towards that threshold, that’s when trouble starts.
* **Warning Level**: When your LTV crosses a certain point (for example, 80% or 90%), you should consider this a margin call warning. Yamata’s UI may provide alerts or color-coded risk indicators as you approach danger. At this stage, you still have time to add collateral or reduce positions manually to improve your margin ratio.
* **Auto-Conversion at LTV Limit**: If your LTV reaches a predefined high (say 95%), Yamata will automatically attempt to reduce risk by converting some of your non-USDC collateral into USDC. This “margin call” conversion bolsters your USDC reserves to better cover losses. Essentially, the system sells a portion of your alt collateral for USDC to lower the LTV. This happens before outright liquidation and is intended to save your positions by injecting more stable collateral. You will be notified if such an event occurs.
* **Liquidation Trigger**: If your LTV hits 100% (meaning your account equity equals the maintenance requirement, or effectively liabilities = collateral), the system will initiate liquidation. In other words, the Margin Ratio is at 100% – you’ve run out of free margin. Yamata does not allow LTV to exceed 100% (which would mean negative equity); liquidation is designed to occur just in time to prevent that.
#### Liquidation Process
When liquidation is triggered, here’s what happens:
1. **Order Cancellation:** First, the engine cancels any open orders you have on the order book. This includes limit orders that might be using some margin. By freeing up this reserved margin, your LTV might drop slightly. (In some cases, this can save you if the market moved back in your favor and freed margin is enough, but typically if you hit the trigger, cancellation alone won’t fully solve it.)
2. **Position Liquidation**: The engine will start closing your positions. Yamata’s liquidation mechanism will generally aim to market sell (or buy, if you’re short) your positions into the order book to reduce exposure immediately:
* It may liquidate the largest position first or proportionally – specifics vary, but the goal is to reduce notional until your account health is back to acceptable levels (below 100% LTV).
* In a full liquidation scenario, all positions could be closed out. If partial liquidation (reducing some positions) is enough to restore margin health (e.g., due to a quick market bounce or having one highly risky position closed), then remaining positions might be left open. However, assume worst-case that a liquidation will flatten all open positions.
3. **Execution Method**: Yamata uses a fair and efficient method to execute liquidations:
* The system may place market orders on your behalf to close positions immediately at the best available price.
* To minimize impact, it might break large positions into chunks or use a designated liquidator mechanism to handle it (some platforms have an auction or matching engine specifically for liquidations).
* The price at which your positions get closed is determined by market liquidity. In volatile conditions, slippage can occur, and you might get a worse price than the mark price at trigger – which is why having an insurance fund or safety net is important (see below).
4. **Post-Liquidation Accounting**: After liquidation, your account is debited for the losses realized in closing the positions. Ideally, you will have some collateral left (maybe not much). Yamata guarantees no negative balance: you will not owe money even if the liquidation price was not great. Any shortfall is covered by the platform’s safety mechanisms (insurance fund or other traders via an auto-deleveraging system). In practice, Yamata’s high-performance order book and risk engine try to liquidate efficiently to avoid any shortfall at all.
5. **Notification**: You will likely receive an alert (in-app notification or email) that your account was liquidated. Post-liquidation, you might see that all positions are closed and your Perps wallet now contains only the remaining collateral (if any) after losses. It’s a hard lesson, but you can continue trading with the remaining funds or deposit more.
#### After Liquidation
If you get liquidated:
* All your perpetual positions are closed out. You retain whatever collateral was left after the process.
* You should analyze what led to the liquidation (too much leverage? not honoring a stop-loss? sudden market move?) and adjust your strategy to prevent it in future.
* **Yamata’s Insurance Fund**: Yamata likely maintains an insurance fund to handle extreme cases where liquidation couldn’t cover the losses (for example, a gap beyond your maintenance margin). This fund accumulates from parts of fees or liquidations where there was leftover margin. It’s there to ensure solvent operation and that winning traders get paid. The details of the insurance fund are beyond scope, but it is part of risk management.
#### Avoiding Liquidation
* **Use Moderate Leverage**: The higher your leverage, the smaller a price move needed to wipe out your margin. Using a moderate leverage (or none at all) gives more breathing room. For instance, at 5× leverage, a 20% adverse move could liquidate you; at 20×, only a 5% move could do it (roughly speaking).
* **Set Stop-Losses**: Don’t rely solely on the liquidation engine as your safety net. Set your own stop-loss orders well before the liquidation point to exit trades on your terms, possibly saving more collateral. Remember, liquidation prices can sometimes be worse, whereas a stop might have gotten you out earlier.
* **Monitor Your LTV/Margin Ratio**: Keep an eye on the risk metrics shown on the Yamata interface. If you see your margin utilization climbing or LTV% creeping up due to a losing position, take action: reduce the position, hedge, or add collateral.
* **Diversify Collateral**: Using multiple collateral assets can help if one asset’s value is plummeting (e.g., if you only hold one volatile coin as collateral and it’s crashing, your collateral value shrinks fast). However, keep in mind correlated assets can all drop together in a market downturn.
* **Stay Informed:** Watch funding rates and market volatility. If a big event is coming (economic news, protocol upgrades, etc.), volatility can spike. Either reduce leverage before such events or be prepared for rapid moves.
# Supported Markets & Leverage
Yamata Perpetuals will launch with a selection of popular crypto asset markets, each quoted against USDC. This section lists the initial supported perpetual markets and their leverage limits, as well as notes on contract specifications. Yamata will continuously expand market offerings, but risk management considerations dictate the maximum leverage for each asset.
#### Available Perpetual Markets
At launch, Yamata is expected to support the following perpetual futures contracts (all settled in USDC):
| Market | Underlying Asset | Description | Max Leverage (Initial) |
| --------- | ---------------- | ----------------------------------------------------------------- | ---------------------- |
| BTC-PERP | Bitcoin (BTC) | Perpetual swap for BTC price, quoted in USDC. 1 contract = 1 BTC. | 50× |
| ETH-PERP | Ethereum (ETH) | Perpetual swap for ETH price, in USDC. 1 contract = 1 ETH. | 50× |
| ARB-PERP | Arbitrum (ARB) | Perpetual contract for ARB token (Layer2 token) vs USDC. | 20× |
| SOL-PERP | Solana (SOL) | Perpetual contract for SOL vs USDC. | 20× |
| OP-PERP | Optimism (OP) | Perpetual contract for OP token vs USDC. | 20× |
| LINK-PERP | Chainlink (LINK) | Chainlink token perpetual vs USDC. | 20× |
| DOGE-PERP | Dogecoin (DOGE) | Dogecoin perpetual vs USDC. | 10× |
| ADA-PERP | Cardano (ADA) | Cardano token perpetual vs USDC. | 10× |
| MON-PERP | Monad | Monad token perpetual vs USDC. | 10× |
| SOMI-PERP | Somnia | Somnia token perpetual vs USDC. | 10× |
| … | More to come | Yamata will list additional assets based on demand and liquidity. | Varies |
**Notes**:
* The above is an illustrative list. The precise assets at launch may vary. Major large-cap assets like **BTC** and **ETH** will definitely be included, with high leverage available. Mid-cap and newer assets (ARB, OP, etc.) are also planned, typically with moderate leverage limits to start.
* **Max Leverage** means the highest leverage factor allowed when trading that market. 50× implies 2% initial margin requirement; 20× implies 5% margin; 10× implies 10% margin. Yamata sets these limits based on asset volatility and liquidity – more volatile assets have lower max leverage to ensure stability.
#### Leverage Tiers and Position Size Limits
Yamata employs a tiered leverage system to manage risk for large positions:
* All markets support the maximum leverage for small to medium position sizes. As your position grows in notional value, the effective maximum leverage may be reduced. This is done by increasing margin requirements for larger notional tiers.
* For example, Yamata might allow up to 50× on the first $500k of BTC-PERP position notional. For notional beyond that, the required margin gradually increases (e.g., equivalent to 20× max on notional above $5M, etc.). This means institutional-scale traders can’t take 50× on extremely large positions – they would need to post more collateral proportionally.
* These **position tiers** ensure that the platform’s exposure is controlled and the insurance fund isn’t at risk from a single huge highly-levered position. The majority of retail traders will not hit these limits, but it’s good to be aware that maximum leverage is a function of position size.
* Yamata will publish a detailed **Margin Tier Table** for each asset. Typically it looks like: e.g., for BTC-PERP:
* 0–$1M notional: 50× allowed (2% margin)
* $1M–$5M: 20× (5% margin)
* $5M+ : 10× (10% margin), etc. (These are examples; refer to official numbers.)
#### Contract Specifications
* **Contract Size**: For linear contracts like BTC-PERP, one contract represents 1 BTC. For some lower-priced assets, Yamata might define 1 contract as a larger unit (e.g., 1000 units of an asset) to avoid overly small price increments. The documentation will clarify per asset if it’s not 1:1.
* **Price Increments (Tick Size)**: Each market has a minimum price increment (tick). For example, BTC-PERP price may tick in 0.5 USDC increments, while something like DOGE-PERP might tick in 0.0001 USDC increments given its lower price. The trading interface enforces these ticks.
* **Quantity Increments (Lot Size)**: Similarly, there may be a minimum trade size. E.g., 0.001 BTC might be the smallest increment for BTC-PERP. These ensure efficient handling and are usually very small to accommodate all trader sizes.
* **Funding Interval**: Most markets will have funding every hour or every 8 hours. Yamata might set major assets (BTC, ETH) to frequent funding (e.g., 1-hour) for tighter price sync, and alts to a bit longer (e.g., 4-hour or 8-hour) if needed. The current interval and next funding time is displayed per market.
* **Index Price Sources**: Each perpetual uses an index comprised of prices from reliable exchanges or oracles. Yamata likely sources from top exchanges (Coinbase, Binance, etc.) or decentralized oracles for each asset to compute the index. This guards against anomalies on any single venue.
* **Settlement Asset:** All listed contracts settle in USDC (as a stablecoin, effectively pegged to USD). There are no inverse contracts (which would settle in the crypto itself) in Yamata’s Perps – this simplifies multi-collateral and risk management.
#### Adding New Markets
Yamata’s goal is to unify “every market, one platform.” New perpetual markets will be added over time, including possibly:
* Additional large-cap coins (LTC, XRP, etc if not at launch).
* Promising mid-cap and DeFi tokens.
* Possibly indices or sector baskets in the future.
* Community-voted listings based on demand.\
When new markets are added:
* They may start with conservative leverage (e.g., 10×) and then increase as liquidity grows.
* Announcements will be made, and documentation updated with the contract specs.
* Ensure you familiarize with any unique aspects of the new contract (some might have different funding mechanics or higher volatility).
#### Multi-Chain Support and Markets
At launch, Yamata Perps operate on the Monad chain (an EVM Layer-1 optimized for trading). However, Yamata will expand to multiple chains (Somnia, Sonic, MegaETH and more). Cross-chain support means you could trade, for instance, BTC-PERP from Ethereum or Base – the backend handles the bridging of liquidity.
The list of markets remains the same across chains, although certain collaterals or features might be chain-specific. Yamata’s account abstraction will make using multiple chains seamless in the UI.
# Perpetuals API Guide
For advanced users and developers, Yamata provides a comprehensive API to interact with the perpetual trading platform programmatically. This allows you to build trading bots, algorithmic strategies, or integrate Yamata’s markets into your applications. This guide covers how to authenticate API requests, key REST endpoints, WebSocket feeds for real-time data, the order execution flow, and rate limits to be aware of.
#### API Access and Authentication
**API Keys**: To use Yamata’s private API endpoints, you’ll need to create API keys from your Yamata account dashboard. An API key consists of a public Key ID and a private Secret. The Key ID identifies your account and the Secret is used to sign requests. Keep your Secret safe and do not share it.
* **Key Permissions**: When generating keys, you can typically set permissions (e.g., read-only for market data, trading-enabled for order placement, withdrawal permissions if applicable). For trading bots, enable trading and info access but keep withdrawal off for safety.
* **HMAC Signature**: Yamata uses HMAC SHA256 signing (JSON/REST) for private requests. Each request must include:
* A timestamp (to prevent replay attacks).
* The request method, endpoint, and body concatenated into a string.
* Use your Secret to generate an HMAC SHA256 signature of that string.
* Include your Key ID and the signature in the request headers (for example: *X-Yamata-APIKey*: *\* and *X-Yamata-Signature: \*; the exact header names will be specified in the API docs).
* **No Authentication for Public Endpoints**: Public data endpoints (market prices, order books, etc.) do not require any auth. They can be accessed freely via GET requests.
**Example Authentication Flow:**
1. Your system captures the current UNIX timestamp (in ms or s as required).
2. Construct a prehash string like: *\|\|\|\* (for a GET with no body, body is empty).
3. Compute HMAC\_SHA256(secret, prehash\_string) → get a hex signature.
Add headers:\
\
*X-Yamata-APIKey: YOUR\_KEY\_ID*
*X-Yamata-Timestamp: \*
*X-Yamata-Sign: \*
4. Send the request to Yamata’s API endpoint.
*(Refer to Yamata’s official API documentation for the exact signing algorithm and header names, as these can differ slightly.)*
#### REST API Endpoints
Yamata’s REST API base URL (for mainnet) will be something like (and a separate base for testnet, e.g., ). Within the REST API, endpoints are generally grouped by function:
* **Market Data (Public):**
* GET /v1/perp/markets – List all perpetual markets and their details (tick size, lot size, funding rate, etc).
* GET /v1/perp/orderbook?symbol=BTC-PERP – Get the current order book snapshot for a given market (with configurable depth).
* GET /v1/perp/trades?symbol=BTC-PERP – Recent trade history for the market.
* GET /v1/perp/ticker?symbol=BTC-PERP – 24h stats (last price, 24h high/low, volume, funding rate, etc).
* GET /v1/perp/index-price?symbol=BTC-PERP – (If provided) get the current index price and mark price.
* **Account & Positions (Private):**
* GET /v1/perp/account – Get your account info, including total equity, margin used, margin available, current LTV%, etc.
* GET /v1/perp/balances – Breakdown of your collateral balances in the Perps account (USDC and other assets, with their USDC values).
* GET /v1/perp/positions – List of your open positions on all markets, with details (size, entry price, P\&L, liq price, etc).
* GET /v1/perp/orders – List of your open orders (limit orders resting on the book, and active stop orders). You can filter by symbol or get all.
* GET /v1/perp/order/\ – Details on a specific order by ID (status, filled amount, etc).
* GET /v1/perp/funding-payments – (Optional) history of funding payments you’ve paid/received.
* **Trading / Orders (Private)**:
POST /v1/perp/order – Place a new order. You will provide JSON in the body like:\
\
*{*
*"symbol": "ETH-PERP",*
*"side": "buy", // or "sell"*
*"type": "limit", // or "market" or "stop\_limit" or "stop\_market"*
*"price": 1600.0, // required for limit, optional for stop (stop-limit uses this as limit price)*
*"size": 5, // number of contracts (or base asset amount)*
*"triggerPrice": 1500.0, // if a stop order, the trigger price*
*"reduceOnly": true, // optional, false by default*
*"postOnly": true // optional, for limit orders if you want maker only*
*}*
* The response will include an *order\_id* and the initial status (e.g., open if resting or filled if it executed immediately, etc).
* *DELETE /v1/perp/order/\* – Cancel an order by ID. (Alternatively, some APIs allow POST /v1/perp/cancel with ID in body or cancel by client order ID.)
* *POST /v1/perp/orders/cancel\_all?symbol=BTC-PERP* – (If available) cancel all open orders (or all on a specific symbol).
* *POST /v1/perp/transfer* – Move funds between your Spot and Perps wallets via API (specify asset and amount, which direction). This could trigger an on-chain transaction if using the API from a non-custodial context; not all users will use this via API, but institutional ones might.
* **Historical Data (Private):**
* *GET /v1/perp/fills* – List of your recent fills/trades (executed orders) with details like price, size, fee, timestamp.
* *GET /v1/perp/order\_history* – Past orders, including cancelled and filled, perhaps with filters for date range.
* *GET /v1/perp/position\_history* – History of positions opened/closed (realized P\&L for each).
**Note**: The exact paths and schemas are subject to change; always refer to the official Yamata API reference. The above is indicative of typical functions.
#### WebSocket API
For real-time data streaming, Yamata offers WebSocket channels. The WebSocket API is essential for low-latency updates such as live order book changes and execution feeds.
* **Endpoint**: The WebSocket server URL might be wss\://api.yamata.io/perp/ws or similar. Check docs for the exact endpoint and any query parameters required (some systems require your API key in the connection URL for private feeds, others do a separate auth message).
* **Subscriptions**: After connecting, you will send a subscription message (usually in JSON) to specify which streams you want. Common streams:
* **Order Book Updates**: Subscribe to a symbol’s order book. Yamata may provide a channel like "orderbook:BTC-PERP" that streams level 2 updates (bids and asks changes). Expect messages with either full depth snapshots followed by incremental deltas, or continuous snapshots at intervals.
* **Trades**: Subscribe to "trades:BTC-PERP" to get a feed of every trade that occurs (with price, size, side, timestamp).
* **Tickers**: Perhaps a "ticker:BTC-PERP" channel for updates on last price, 24h stats in real-time.
* **Index/Funding**: Possibly a feed for index price updates or current funding rate moves if needed.
* **Private Data Streams**: If you authenticate on the WebSocket (by sending an auth payload with your API key and a signature/timestamp similar to REST auth), you can subscribe to private topics:
* **Order Updates**: You’ll receive messages whenever one of your orders is filled, partially filled, or canceled (including liquidations). This is crucial for a trading bot to know the status without polling REST.
* **Position Updates**: Notifications when a position’s size or P\&L changes significantly, or when funding is applied to you.
* **Balance Updates**: Notifications on changes in your balance (e.g., after a trade fee deduction, funding payment, or manual transfer).
**Example Subscribe Message**: (format can differ, but as an illustration)\
\
*{*
*"action": "subscribe",*
*"channels": \[*
*{ "name": "orderbook", "symbol": "BTC-PERP" },*
*{ "name": "trades", "symbol": "BTC-PERP" }*
*]*
*}*
After authenticating:\
\
*{*
*"action": "subscribe",*
*"channels": \[*
*{ "name": "user.orders" },*
*{ "name": "user.positions" }*
*]*
*}*
* **Heartbeat/Ping-Pong**: The WebSocket server may require periodic ping/pong to keep connection alive. Yamata’s docs will specify if you need to respond to pings or if they send heartbeats.
#### Trading Flow Overview (Putting it Together)
If you’re building a trading application, a typical workflow might be:
1. **Authentication**: Load your API key and secret. If using WebSocket for private data, connect and authenticate on the WS.
2. **Get Market Info**: Use REST to fetch current market specs, tick sizes, etc., or subscribe to WS tickers for live prices.
3. **Place Orders**: When your strategy decides to trade, use the REST POST /order endpoint to send the order. Include any special flags (reduce-only, post-only) as needed. Parse the response:
1. If immediate fill, you might get the fill info back or you will receive it via the WebSocket user trade update.
2. If resting, store the order\_id to track it.
4. **Monitor via WebSocket**: Listen to:
1. Order book feed for market changes if your strategy uses that.
2. User order updates: e.g., you placed a limit, you’ll get notified if it gets filled or partially filled.
3. User position updates: see your position size and P\&L update in real time as fills occur or mark price moves.
4. If you get a stop order trigger fill, it will also come as an order update event.
5. **Manage Orders**: If conditions change, you might cancel or modify orders:
1. Cancel by REST call or possibly by sending a cancel action via WS if supported.
2. Place new orders as needed (repeat step 3).
6. **Handle Errors**: Incorporate logic for errors (like order rejected due to insufficient margin or bad parameters). The API will return error codes/messages – e.g., “1102: price out of range” or “1004: not enough balance”. Handle gracefully (maybe fetch account info again, adjust and retry if appropriate).
7. **Rate Limit Compliance**: Ensure your bot does not spam the API beyond allowed limits. Yamata’s rate limits might be something like:
1. 120 requests per minute for REST per key (just an example).
2. Or specific limits like “placing orders: max 10 per second” etc.
3. WebSocket may have limits on subscriptions or messages per second as well.
4. Check headers in REST responses; sometimes APIs return your remaining rate limit.
8. **Disconnects and Reconnection**: Plan for WS disconnects – maintain a loop to reconnect and resubscribe if needed. Also, on reconnect, you may want to fetch a fresh snapshot of order books or positions to reconcile any missed data while disconnected.
#### Rate Limits and Best Practices
* **REST Rate Limits**: Yamata will document exact figures. For instance, you might see limits like:
* GET market data endpoints: up to 50 requests per second (these are usually generous).
* POST order endpoints: e.g., max 5–10 order placements per second per account.
* If you exceed, you’ll get HTTP 429 Too Many Requests. Back off and wait a bit before retrying. Implement exponential backoff in your API client if you hit these errors.
* **WebSocket Limits:** Don’t oversubscribe or send too many messages too fast. Typically:
* Limit how often you send new orders or cancellations via WS (if that’s supported) – using REST might be preferable for a large burst of orders since you can control pacing.
* Some WS have a limit on incoming messages (like max 30 msg per 5 seconds). Throttle your heartbeat responses or order submissions accordingly.
* **Avoiding Liquidation via API**: If you are running an automated strategy, you might want to utilize the API to also set emergency stops. For example, if your bot loses connectivity or identifies an account issue (like margin too low), it could auto-delever or close positions. Yamata’s API allows you to build such safety nets (e.g., periodically check GET /account for LTV, and if above X, then POST /order to reduce position, etc).
* **Testing on Testnet**: Yamata provides a testnet (on Monad testnet currently) where the API endpoints are identical but operate on a sandbox environment. Use this for development before moving your bot to mainnet. The base URL differs (e.g., testnet-api.yamata.io). Remember to get testnet API keys separately, and that testnet markets may have different liquidity characteristics.
#### Example Workflow (Code Snippet Pseudo-code)
*# Pseudo-code example for a simple market buy via REST*
*import time, hmac, hashlib, requests*
*API\_KEY = "your\_key\_id"*
*API\_SECRET = "your\_api\_secret".encode('utf-8')*
*BASE\_URL = ""*
*def sign\_request(method, path, body=""):*
*ts = str(int(time.time() \* 1000))*
*prehash = ts + '|' + method + '|' + path + '|' + body*
*signature = hmac.new(API\_SECRET, prehash.encode('utf-8'), hashlib.sha256).hexdigest()*
*return ts, signature*
*# Prepare order*
*order = {*
*"symbol": "BTC-PERP",*
*"side": "buy",*
*"type": "market",*
*"size": 0.01 # buying 0.01 BTC*
*}*
*body\_json = json.dumps(order)*
*ts, sig = sign\_request("POST", "/v1/perp/order", body\_json)*
*headers = {*
*"X-Yamata-APIKey": API\_KEY,*
*"X-Yamata-Timestamp": ts,*
*"X-Yamata-Sign": sig,*
*"Content-Type": "application/json"*
*}*
*response = requests.post(BASE\_URL + "/v1/perp/order", headers=headers, data=body\_json)*
*print(response.json())*
The above would execute a market buy for 0.01 BTC-PERP. The response might return an order id and confirmation of fill (for market orders, typically it fills immediately and you get details of the trade like average price).
**Safety Tip**: Never hardcode real API secrets in code that is shared or unsecured. Use environment variables or secure vaults in production. And consider IP whitelisting on your API key if Yamata supports it.
# Prediction Markets
# Overview
Yamata's decentralized prediction markets enable anyone to create and participate in prediction markets on virtually any future event, powered by transparent on-chain infrastructure.
# What Are Prediction Markets?
Prediction markets allow users to commit funds to specific outcomes of future events. When the event resolves, users who backed the winning outcome share the total pool proportionally, creating market-driven forecasts for everything from sports to politics to crypto prices.
# Platform Features
Anyone can create a prediction market on Yamata. No approval needed—simply define your event, set the parameters, and launch your market.
### **Liquidity-Gated Discovery**
Markets begin in the Wild West zone where creators can share links and build initial liquidity. Once a market reaches the liquidity threshold, it graduates to the Public Markets page where it gains visibility to the entire Yamata community.
### **Position Tokens (ERC-1155)**
All commitments receive ERC-1155 token receipts as proof of participation. These tokens represent your position in the market and are required for claiming payouts after resolution.
### **Fully On-Chain**
Every bet, market creation, and resolution happens on-chain for maximum transparency, auditability, and security.
### **Optional: Time-Weighted Rewards**
Early participants can receive higher rewards through beta-weighted distribution—rewarding conviction and early market participation when enabled by the market creator.
# How It Works
1. #### **Market Creation**
Any user can create a market by defining:
* Event Description: What future event will be predicted
* Possible Outcomes: 2 or more mutually exclusive outcomes (e.g., "Brazil," "Argentina," "Germany" for World Cup winner)
#### **Timeline**:
* tOpen: When the market opens for commitments
* tClose: When commitments close
* tResolve: When the event result can be submitted
* Beta Parameters: Early commitment reward multiplier (betaOpen) - optional
* Token: Which stablecoin or other tokens will be used for commitments
1. #### **Building Liquidity (Wild West Phase)**
After creation, your market enters the Wild West zone. Here's how to build liquidity:
* Share your market link with friends, communities, or social media
* Attract participants to commit funds to different outcomes
* Build momentum until you reach the liquidity threshold
* Graduate to Public Markets once threshold is met
Pro Tip: Markets with clear rules, interesting events, and active promotion tend to graduate faster.
1. #### **Making Commitments**
Users participate by committing stablecoins to their predicted outcome:
Each commitment receives an ERC-1155 position token that represents:
* The outcome they backed
* The amount committed
* Their timestamp (important for beta weighting if enabled)
1. #### **Event Resolution**
After the event occurs (post-tResolve), the market creator submits the result, which opens a 24-hour challenge window. During this period, any participant can challenge the result by staking tokens. If the challenge is valid, the result is corrected and the challenger is rewarded. If no valid challenges are made during the 24-hour window, the result becomes final and funds redistribute from losing outcomes to winning outcome holders.
1. #### **Claiming Payouts**
Winners claim their share based on:
* Amount committed: Larger stakes = larger share
* Timing of commitment: Earlier commitments = bonus multiplier (if beta weighting enabled)
* Beta weighting: Rewards early conviction when activated
# Beta-Weighted Distribution
Yamata's optional beta function rewards both stake size AND timing, creating incentives for early market participation when enabled by the market creator.
### How Beta Works
* **Before Market Opens** (t < tOpen): Maximum beta weight (betaOpen, typically 5.0)
* **During Market Period** (tOpen ≤ t ≤ tClose): Beta decreases linearly from betaOpen to 1.0
* **At Market Close** (t = tClose): Beta = 1.0 (no timing bonus)
### Mathematical Formula
### Numerical Example
Market Parameters:
* betaOpen: 5.0
* tOpen: Jan 1, 2025 00:00
* tClose: Jan 2, 2025 00:00
* tResolve: Jan 2, 2025 01:00
### Commitments:
User
Time
Outcome
Amount
Beta
Weighted
Alice
Dec 31, 23:00
Germany
$20
5.0
$100
Bob
Jan 1, 00:00
France
$300
5.0
$1,500
Carol
Jan 1, 06:00
Germany
$50
4.0
$200
Dave
Jan 2, 00:00
Brazil
$100
1.0
$100
**Resolution**: Germany wins
### **Payout Calculation:**
* Total losing stakes: $300 + $100 = $400
* Platform fees: $10
* Profits to distribute: $390
### **Winners' Share:**
* Alice's share: 100/(100+200) × $390 = $130 profit + $20 stake = $150 total
* Carol's share: 200/(100+200) × $390 = $260 profit + $50 stake = $310 total
**Notice**: Alice committed less money but received a higher profit ratio due to earlier timing and higher beta weight.
# Market Lifecycle & States
Every market on Yamata progresses through defined states:
### State Flow
### State Definitions
1. #### Created
* Market parameters set
* Awaiting opening time
* No commitments accepted yet
2. ### Open
* Commitments accepted
* Position tokens minted
* Beta decreasing over time (if enabled)
3. ### Closed
* No new commitments
* Awaiting resolution time
* Event may still be ongoing
4. ### Resolved
* Market creator has submitted result
* 24-hour challenge period active
* Preparing for payouts
5. ### Payouts
* Winners can claim rewards
* Beta-weighted distribution (if enabled)
* Position tokens burned on claim
6. ### Cancelled/Refunds
* Market flagged or unresolvable
* All participants refunded
* No winners/losers
# Market Resolution & Challenge System
### Resolution Process
Yamata uses a challenge-based resolution system to ensure accurate results:
1. **Initial Resolution**: Market creator submits the winning outcome
2. **24-Hour Challenge Period**: Window for disputing incorrect results
3. **Economic Incentives**: Challengers stake tokens; correct challenges rewarded
4. **Finalization**: After challenge period, result becomes final
### Resolution Criteria
Markets can be resolved when:
* Event has occurred (past tResolve)
* Outcome is objectively verifiable
* Market creator has submitted result
* 24-hour challenge period has passed (if challenged)
### Cancellation Scenarios
Markets may be cancelled if:
* **Fewer than 2 outcomes** have commitments (unresolvable)
* **Flagged for rule violations** during challenge period
* **Event cancelled** or made unresolvable in real world
* **No winning outcome** (edge case)
In cancellation scenarios, all participants receive full refunds.
# Position Tokens (ERC-1155)
### **What You Get**
Every commitment mints an ERC-1155 token with:
* **Token ID**: Encodes market + outcome
* **Amount**: Your commitment size
* **Metadata**: Timestamp, beta weight, market details
### Token Purpose
Position tokens serve as:
* **Proof of commitment**: Verifiable on-chain record
* **Claim mechanism**: Required to claim payouts
* **Portfolio tracking**: View all your market positions
**Important Note**: Position tokens are non-transferable and should not be traded. They exist as proof of your commitment and for claiming payouts.
## Creating Your First Market
### Step-by-Step Guide
1. Navigate to Create Market
* Click "Create Market" in navigation
* Fill out market creation form
2. ### Define Event Details
* Bellow $50,000
* $50,000 - $75,000
* $75,000 - $100,000
* $100,000 - $150,000
* Above $150,000
2. ### Set Timeline
* Market opens: May 1, 2025 00:00 UTC
* Market closes: Dec 31, 2025 22:00 UTC
* Resolution time: Jan 01, 2026 00:00 UTC
4. ### Configure Parameters
* Beta open: 5.0 (5x multiplier for early commitments) - Optional
* Commitment token: USDC
* Minimum commitment: $10
5. ### Submit Transaction
* Confirm transaction in wallet
* Wait for confirmation
6. ### Share Your Market
* Copy market link
* Share on social media, Discord, Twitter
* Build liquidity to reach threshold
* Graduate to Public Markets page
# Participating in Markets
### Finding Markets
**Public Markets Page**
* Browse verified markets that met liquidity threshold
* Filter by category, token, timeline
* Sort by volume, activity, closing soon
**Wild West Zone**
* Discover new markets building liquidity
* Higher risk, potential for better early odds
* Direct links from market creators
### Making a Commitment
1. **Select Market**
* Review event description
* Check timeline and parameters
* Analyze current distribution
2. **Choose outcome**
* Select your predicted outcome
* See current odds and commitments
3. **Enter amount**
* Specify commitment amount
* Preview beta weight based on timing (if enabled)
* Review estimated returns if correct
4. **Approve & Commit**
* Approve token spending (first time only)
* Submit commitment transaction
* Receive ERC-1155 position token
5. **Manage Position**
* Hold until resolution to claim rewards
* Monitor market activity
* Prepare for resolution period
# Security & Transparency
### Non-Custodial Architecture
* **You control your funds**: Commitments locked in smart contracts, not held by Yamata
* **No intermediaries**: Direct interaction with blockchain
* **Trustless resolution**: Algorithmic distribution, no manual intervention
### On-Chain Transparency
Every action is publicly verifiable:
* Market creation parameters
* All commitments and timestamps
* Resolution submissions and challenges
* Payout calculations and distributions
### Zero Platform Risk
* **No market-maker exposure**: Yamata has no financial stake in outcomes
* **Auditable code**: Smart contracts open source and audited
* **Permissionless**: No ability to freeze or seize funds
### Smart Contract Security
* **Modular architecture**: Extensible framework with secure base
* **Multiple inheritance**: Diamond pattern for clean separation of concerns
* **Rate limiting**: Quota management prevents spam
* **Validation framework**: Versioned metadata ensures parameter correctness
# Best Practices
### For Market Creators
**Do**:
* Create clear, unambiguous events with verifiable outcomes
* Set reasonable timelines giving participants time to commit
* Promote your market actively to reach liquidity threshold
* Provide context in descriptions to attract participants
* Choose popular stablecoins (USDC, USDT) for broader appeal
**Don't**:
* Avoid subjective outcomes that cannot be objectively resolved
* Don't set close times too close to event occurrence
* Don't create spam markets (rate limiting will block you)
### For Participants
**Do**:
* Research the event before committing
* Commit early to maximize beta rewards if confident (when enabled)
* Diversify across multiple markets and outcomes
* Monitor positions and market activity
* Verify market parameters before committing
**Don't**:
* Don't commit to unclear events with ambiguous outcomes
* Don't risk more than you can afford to lose
* Don't ignore timelines and miss commitment windows
# Supported Networks
Yamata prediction markets are deployed on Monad and Somnia, with more to come.\
More networks coming soon.
# FAQ
### Q: What happens if a market never reaches the liquidity threshold?
A: It remains in the Wild West zone indefinitely. Participants can still commit and resolve as normal—it simply won't appear on the Public Markets page.
### Q: Can I cancel my commitment?
A: No direct cancellation is possible. Position tokens are non-transferable, so you must hold your position until resolution.
### Q: What if the market creator submits a wrong result?
A: Anyone can challenge the result during the 24-hour challenge period by staking tokens. If the challenge is valid, the challenger is rewarded and the result is corrected.
### Q: How are subjective events resolved?
A: Yamata works best with objectively verifiable events. Subjective events may be challenged and require community consensus or may be cancelled.
### Q: Can I create markets on any event?
A: Yes, but markets must comply with terms of service. Illegal activities, violence, or clearly unethical events are prohibited and may be flagged.
### Q: What tokens can I use?
A: Any ERC-20 token can be used for commitments. Popular choices include USDC, USDT, and DAI.
### Q: Are there limits on market creation?
A: Yes, quota management prevents spam. Limits based on account age, reputation, and frequency.
### Q: Can I create markets with more than 2 outcomes?
A: Absolutely! Markets support 2 to unlimited outcomes (practical limit \~50 for UX).
# Legal and compliance
### Important Notice
Prediction markets may be subject to regulations in your jurisdiction. Users are responsible for ensuring compliance with local laws. Yamata provides infrastructure only and does not:
* Offer investment advice
* Guarantee market outcomes
* Provide financial services
* Act as a custodian or intermediary
### Risk Warning
Participating in prediction markets involves risk of loss. Only commit funds you can afford to lose. Past performance does not predict future results. Markets may become illiquid or resolve unexpectedly.
## Conclusion
Yamata empowers anyone to create and participate in decentralized prediction markets with unprecedented transparency, fairness, and efficiency. Through permissionless market creation, optional time-weighted rewards, position tracking tokens, and community-driven discovery, Yamata represents the next evolution of on-chain forecasting.
### Ready to get started?
1. Create your first market or browse Public Markets
2. Make your first prediction
3. Join the community and shape the future of decentralized forecasting
### Let the markets decide. Welcome to Yamata.
# Join The Onchain Revolution
A) **FOR TRADERS**
Yamata is building the next generation of crypto trading. Our platform will combine instant account creation through email login, professional-grade tools, and true self-custody—all without the complexity of traditional DeFi.
As we prepare for launch, early supporters have unique opportunities:
* Priority access to our incentivized testnet
* Exclusive alpha and beta testing programs
* Early liquidity provider incentives
* Founding trader benefits
Join our waitlist to:
* Secure your spot in upcoming testing phases
* Participate in initial liquidity bootstrapping
* Access exclusive launch rewards
* Shape the future of on-chain trading
The platform we're building will feature deep liquidity pools, advanced trading tools, and programmatic capabilities—all powered by our breakthrough Guardian Node Network. By joining early, you'll help define this future while positioning yourself for maximum benefit when we launch.
B) **FOR NODE OPERATORS**
Become a Guardian of the next generation of crypto trading. As a Validating Node operator, you'll play a crucial role in ensuring the integrity and security of Yamata's trading infrastructure while earning rewards for your service.
Becoming a Guardian starts with acquiring a Validating Node License—a non-transferable NFT that grants operating rights. We're designing a flexible system with multiple participation options:
* Self-hosted operation for complete control
* Virtual Private Server (VPS) for managed infrastructure
* Node-as-a-Service (NaaS) for automated operation
* Delegation options for passive participation
Guardian Node rewards flow from multiple streams:
* Base rewards from token emissions (10-20% of total supply)
* Share of daily transaction fees
* Substantial rewards for successful challenges
* Opportunity to claim
* Sequencer's locked revenue pool
Your responsibilities as a Guardian are critical but straightforward:
* Monitor order execution and epoch commitments
* Validate Sequencer operations against on-chain data
* Participate in challenge voting when discrepancies arise
* Maintain node uptime and performance
Early Guardians will receive additional benefits:
* Priority access to Node License NFTs
* Enhanced initial rewards
* Founding Guardian status
* Early participation in testnet operations
**Join our Guardian Node waitlist to:**
* Secure your position as an early network validator
* Receive updates on technical requirements
* Access exclusive Guardian-only content
* Participate in node testing programs
**C) NEXT STEPS**
The on-chain trading revolution needs builders, traders, and guardians. Whether you're a developer eager to build the future of trading, a trader ready to experience next-generation features, or a potential Guardian Node operator, here's how to get involved:
Join Our Community: The journey starts in our Discord, where you'll find dedicated channels for technical discussions, trading strategies, and Guardian Node operations.
Visit our **website** for more information:
Follow us on **X**:
Join our **Telegram** () or **Discord** () for direct engagement with the team
Every channel offers unique insights into our development progress and upcoming opportunities.
**For Developers:**
Our documentation hub is coming soon, providing comprehensive resources for building on Yamata:
* Technical architecture deep-dives
* API specifications and examples
* Guardian Node setup guides
* Integration tutorials
Want to Collaborate? We're actively engaging with:
* Market makers for initial liquidity provision
* Infrastructure partners for node operations
* Projects building complementary solutions
* Integration partners across the ecosystem
* Marketing partners and Key Opinion Leaders
Get Started Now:
→ Join Waitlist: secure your place in our alpha release
→ Read Docs: dive into our technical framework
→ Connect: follow our social channels for exclusive updates
→ Contact: reach out to
The future of trading is being built today. **It's time to trade without limits.**