AMOK
  • Why Avalanche?
  • AMOK: How it works
    • Overview
    • Futures Trading
    • Understanding Futures
    • vAMM
    • Leverage
    • Liquidation
    • Partial liquidations
    • Margin Ratio
    • Trading on AMOK
      • Step 1
      • Step 2 and 3
      • Step 4 and 5
      • Step 6
  • AMOK Token
    • Overview
    • Token specifications
    • Use cases
  • Limit Orders – AMOK
    • Why are limit orders on a different platform?
  • Staking – AMOK
    • Staking overview
    • Staking Period
    • Liquidity Pools and rewards systme
    • Pool Rewards
    • Vested token rewards
    • After period
    • Rewards calculation
    • Reward claim process
  • Perpetual Contract Specs - AMOK
    • AVAX/USDC
    • BTC/USDC
    • ETH/USDC
  • AMOK Marketing
  • How to get started
  • FAQ
    • What is AMOK?
    • What is the goal of AMOK?
    • How safe is AMOK?
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  1. AMOK: How it works
  2. Trading on AMOK

Step 2 and 3

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Last updated 3 years ago

The Clearing House then deposits the funds into the Vault, at which time AMOK updates the asset price in our vAMM according to the margin, direction, and leverage. Note that AMOK’s vAMM is used only for handling leverage/shorting, so there is no risk of permanently losing liquidity.

As presented in the diagram, the tokens are not stored in AMOK’s AMM, hence “Virtual AMM”, considering that there is no token swap taking place within the AMMs.

Assume we have 100 ETH/USDC and 10,000 USDC in our vAMM as its initial state.

As mentioned before, the amount of ETH/USDC and USDC set in a vAMM aren't real tokens - they're just two numbers credited in a vAMM, and this vAMM uses them as the variables in the constant-product curve formula to calculate the price of the derivative on the platform.