A description of main terms used in the STFX system.
STFX – Single Trade Finance Exchange. A platform for creating and investing in STVs.
STV – Single Trade Vault. Short-duration, non-custodial, active asset management vaults, discretionarily managed by the STV creator, that are dedicated to one trade.
Short-term Asset Management – Asset Management vehicles whose duration is between days to weeks, rather than months to years, like in Traditional Finance and previous DeFi projects.
Managers – Also known as STV creators. Individuals who create and subsequently manage the STVs.
Investors – Individual who invest in STVs.
My Vaults – Section of the STFX dApp which outlines the STVs that you have created and are currently managing. Also includes the STVs which you have created or managed in the past.
My Investments – Section of the STFX dApp which outlines the STVs into which you are currently invested. Also includes the STVs into which you have invested in the past.
Fundraising Period – The period during which the STV can accept investors prior to deploying the raised capital. Current minimum fundraising period is 1 hour. Current maximum fundraising period is 1 week (168 hours).
Advertised Entry – The approximate price level that the Manager advertises during the STV fundraising period, indicating where they intend to enter the position. In V1 Version of the protocol, Managers open positions in real time, via a market order. Therefore, this value is for advertising purposes only and not binding.
Executed Entry – The actual price level where the Manager triggers the opening of the position.
Advertised Target – The approximate price level that the Manager advertises during the STV fundraising period, indicating where they ultimately intend to close the position. In V1 Version of the protocol, Managers close positions in real-time, via a market order. Therefore, this value is for advertising purposes only and not binding.
Executed Target – The actual price level where the Manager triggers the closing of the position.
Liquidation – An event, where, due to adverse price movement, the decentralized derivatives exchange which is used for the STV is forced to partially or fully liquidate the position, resulting in partial or full losses for the STV.
Deploy STV – also known as opening the position. This is when the manager decides for the STV to enter into the position.
Close STV – also known as closing the position. This is when the manager decides for the STV to close its position.
PnL - Profit and Loss
Total PnL – represents the total PnL value of an STV.
Investor PnL – represents the PnL value of an STV that can be claimed by Managers. Currently set to be 80% of Total PnL
Claim – If an STV ends up closing in profit, Investors can claim back their initial investment plus their share of the Investor PnL. If an STV ends up closing in a partial loss, Investors can claim back their initial investment minus their share of Total PnL. If an STV ends up not deploying the funds within 72h after the end of the fundraising period, Investors can claim back all of their invested capital.
Performance Fee – Managers and the STFX platform receive a performance fee on profitable STVs. Currently the total performance fee value is set to 20% of net STV profits, 15% of which is sent to the Manager, and 5% of which is sent to the STFX treasury.
STFX Reputation = STV Capacity – On the STFX platform, a Manager's reputation is equivalent to the Maximum Fundraising Capacity of a Vault that they can create. Executing profitable STVs causes a Manager's reputation to increase. Executing losing STVs causes a Manager's reputation to decrease.