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System Flow

System Flow:
  1. 1.
    Manager outlines trade parameters: instrument type, direction, approximate entry, stop or liquidation, take profit and leverage. The manager will select which of these parameters they want to make visible, and those which will remain opaque
  2. 2.
    Manager “initiates” the vault, which pushes the underlying trade parameters from step #1 as metadata into a smart contract on Arbitrum
  3. 3.
    Following initiation, the STV fundraising period commences. The fundraising will complete when one of the following ensues: the vault raise capacity is hit, or the duration limit expires
  4. 4.
    Once the fundraising is over, commission fee is levied on the vault, and the collected capital is autonomously transferred to GMX Decentralized Perpetual Exchange (DEX). This capital is then used as margin collateral to execute the trade according to the contract specifications of step #2
  5. 5.
    Trade is executed on GMX & other decentralized derivative exchanges.
  6. 6.
    Once the position is closed (TP/SL/liquidation is triggered), the PnL is sent back to the Arbitrum smart contract
  7. 7.
    If a profit is generated, the manager and STFX platform performance fees are debited, and investors can then claim their original principle + accrued profits
  8. 8.
    If the trade resulted in a loss, investors claim their original principle – accrued losses