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PONSLIQUID opens a perpetual market against every live Pons bonding curve, on RH Chain (4663). Everything below is enforced by the contracts. Where the interface and this page disagree with the chain, the chain is right.

Mechanics

A Pons token sits on a bonding curve until enough ETH accumulates for it to graduate to a pool. During that window the token is one-directional: you can buy it or not buy it. PONSLIQUID adds the other side.

• Collateral is native ETH. There is no stablecoin and no wrapped token.
• Margin is isolated per market. A liquidation takes that position and nothing else.
• Leverage is capped at 3x before graduation and 5x after.
• The counterparty is the vault, not an order book, so depth exists from the first block a market is created.
• Open interest in a market is capped at 25% of the ETH in its curve.

The oracle

Mark price is derived from the curve's own reserves — ethReserve / tokenReserve — read on-chain in the same block as the trade, smoothed over a 30-second TWAP. There is no external feed, no reporter, and no cross-chain hop.

Manipulation is priced out rather than policed. Because open interest cannot exceed a quarter of the curve's reserves, moving spot far enough to profit on a perp means trading against a curve four times the size of the position you are trying to print. The TWAP removes the single-block version of the same attack.

At graduation the oracle switches source from the curve to the new pool and emits SourceSwitched. Positions are untouched: same margin, same entry, same funding index. Maximum leverage lifts to 5x.

Fee schedule

Fees are taken from margin at open and from proceeds at close. A round trip therefore costs 0.20% of notional before funding.

Liquidation math

Maintenance margin is 6.25% of notional. With isolated margin, equity is your margin plus unrealised PnL, and the position is liquidated once equity falls below maintenance:

drawdown_to_liquidation = 1 / leverage - 0.0625

liq_price_long  = entry * (1 - drawdown_to_liquidation)
liq_price_short = entry * (1 + drawdown_to_liquidation)

Fees and accrued funding come out of the same margin, so a position carried through an adverse funding regime liquidates slightly sooner than the table alone implies. There is no partial liquidation: the position closes at the mark and any remainder is returned to you.

Funding and borrow

Funding is settled hourly against margin and is clamped to ±0.05% per hour. Its sign follows the premium of the perp mark over the curve mark — when the perp trades above the curve, longs pay shorts.

Separately, both sides pay a borrow rate to the vault for the capital standing behind their notional. Borrow is always a cost; funding can be either. The ticket shows both and their net.

Settlement and death

Most curves never graduate. A market is declared dead when both conditions hold:

1. No activity against the curve for 72 hours.
2. Price below 20% of its high.

That opens a 24-hour close-only window: existing positions can be reduced or closed, nothing new can be opened. At the end of the window the market force-settles every remaining position at the 24-hour TWAP.

Settlement is never at zero. A short that was right is paid the distance it actually earned; a long that was wrong keeps whatever margin the TWAP leaves.

Vault

Depositors send ETH and receive spETH, a share of the pool whose price moves with realised fees, funding, and trader PnL.

• Utilisation is capped at 60% of deposits. The remaining 40% is never committed to open interest, which is what makes withdrawals independent of traders closing.
• Systematic exposure — the case where every market moves together — is hedged on Hyperliquid.
• Idiosyncratic risk is not hedged. One coin gapping on its own is a loss the pool takes.

Contracts