🗃️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:

Account Open Interest=Market mPosition Size(m)  Mark Price(m)\text{Account Open Interest}=\sum\limits_{\text{Market}~m}\text{Position Size}(m)~*~\text{Mark Price}(m)

Where:

  • Position Size: The size of the position in a specific market mm.

  • Mark Price: The current price of the instrument in market mm.

Parameters

ParameterValueDescription

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 Δt\Delta t (measured in seconds) is:

OI Points Accrued=Weekly OI Points Rate1,000Δt7243600Capped Account Open Interest\small\text{OI Points Accrued}= \frac{\text{Weekly OI Points Rate}}{1,000}*\frac{\Delta t}{7*24*3600}*\text{Capped Account Open Interest}

Where:

  • Weekly OI Points Rate: The points rate per 1,000 USD of Open Interest per week.

  • Δt\Delta t: The time interval in seconds over which points are calculated.

  • 7×24×36007 \times 24 \times 3600: 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:

Capped Account Open Interest=min(Account Open Interest, Open Interest Cap Value)\small\text{Capped Account Open Interest}=\\\min(\text{Account Open Interest},~\text{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 (Δt\Delta t = 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

OI Points Accrued = (10 / 1000) * 3600/(7*24*3600) * min(60000, 10000000)
                  = 0.01 * 1/168 * 60000
                  = 3.5714 points

Account B positions

  • ETH-USD-PERP Position Size: 4,000 ETH

  • Account B Open Interest: (4000 * 3,000) = 12,000,000 USD

OI Points Accrued = (10 / 1000) * 3600/(7*24*3600) * min(12000000, 10000000)
                  = 0.01 * 1/168 * 10000000
                  = 595.2381 points

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.

Last updated