🗃️OI Points
Open Interest (OI) Points are part of the Paradex Points Program designed to reward users based on the USD value of their active positions. These points incentivize users to maintain significant positions on the platform, thereby contributing to its liquidity and trading volume.
Open Interest Definition
Open Interest for a given account is the total USD value of all open positions, calculated using the current mark price of each instrument. The formula for Account Open Interest is:
Where:
Position Size: The size of the position in a specific market .
Mark Price: The current price of the instrument in market .
Parameters
Parameter | Value | Description |
---|---|---|
Open Interest Cap Value | 10,000,000 USD | The maximum value up to which an account can earn points for its Open Interest. |
Weekly OI Points Rate | 10 points per 1,000 USD of Open Interest per week | The rate at which points are accrued per 1,000 USD of Open Interest over a week. |
Accruing Formula
The OI points for an account accrue continuously based on its Open Interest over time. The formula for calculating OI Points over a time interval (measured in seconds) is:
Where:
Weekly OI Points Rate: The points rate per 1,000 USD of Open Interest per week.
: The time interval in seconds over which points are calculated.
: The total number of seconds in a week.
Capped Open Interest
To prevent disproportionate accumulation of points by accounts with extremely high open interest, points are calculated only up to the Open Interest Cap Value:
Key Differences from Core Points Programs:
No Fixed Allocation: Unlike the core points programs, there is no fixed allocation for OI Points. They are calculated independently for each account.
No Market-Based Allocation: OI Points do not depend on individual market allocations. Only the total Open Interest for the account matters.
Example
Program Parameters
Open Interest Cap Value: 10,000,000 USD
Weekly OI Points Rate: 10 points per 1,000 USD per week
Mark Prices:
ETH-USD-PERP: 3,000 USD
SOL-USD-PERP: 150 USD
Assuming no changes in mark prices over 1 hour ( = 3600 seconds)
Scenarios
Account A positions
ETH-USD-PERP Position Size: 10 ETH
SOL-USD-PERP Position Size: 200 SOL
**Account A Open Interest: (**10 * 3,000) + (200 * 150) = 60,000 USD
Account B positions
ETH-USD-PERP Position Size: 4,000 ETH
Account B Open Interest: (4000 * 3,000) = 12,000,000 USD
In the examples, Account B's Open Interest exceeds the cap, so its points are calculated based on the cap value, while Account A's Open Interest is fully considered.
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