Float allows you to get tokenized long or short exposure.
Tokenization means composability with DeFi.
All DeFi protocols, including float, carry significant risk. While we test and perform audits, you shouldn't consider any DeFi protocol, including float, "safe" and without risk.
Many of the core team have previously audited smart contracts, and we aim to prioritize security.
Learn more about our security here.
Float is a series of smart contracts that have a wide variety of risks.
Read this non-exhaustive list of risks you face before using Float here.
You can mint a long or short token in just a couple clicks provided you cryptographically sign and agree to the terms which, among various things, state you should not be from or reside in a prohibted jurisdiction such as the USA.
To learn how, see our guide here.
While Float receives no fees, there is a liquidity stability fee (mint fee) and funding fee which is received by liquidity providers in the float pool who are taking the counterparty risk/position of the difference between aggregated long and short liquidity.
No you cannot get liquidated. There is no such thing as a free lunch. While you cannot get liquidated, you are subject to other forces such as volatility decay and other risks.
Volatility decay is a phenomenon observed when holding leveraged assets. The decay in a traders’ profit and loss is due to frequent directional changes in the price of the underlying asset.
Learn more about it in our blog.
Yes, except in rare edge cases.
Each market has a Float pool, which changes sides and leverage to balance liquidity in the market, to ensure that your exposure is fixed at a certain level.
Each Float pool has a ceiling on how much leverage it can assume. If the imbalance in the market is greater than the Float pool can assume, then users on the overbalalanced side of the market will see their exposure drop below their stated leverage.
Yes, the alpha has had an audit with Code 423n4, and Arctic has been audited by Sherlock.
Security is a massive priority for us. We do test our smart contracts and conduct 3rd party smart contract audits of our code. Unfortunately this does not guarantee the absence of any bugs.
Be sure to check out our security page for more info.
Check out this article on the different risks associated when using the protocol:
We are group of passionate mathematicians, engineers, computer scientists and degens who have been working together for more than 3 years.