🆘Frequently Asked Questions

FAQs

1. Q: Do I have to deposit funds before starting trading? A: Yes. Panana Protocol adopts a Cross-Margin model, which enables users to manage their positions more flexibly. To support this margin model, users should deposit their funds before opening a position.

2. Q: How many assets are supported on Panana? A: The Panana protocol uses an oracle-based pricing mechanism, which allows traders to take exposures to a wide range of assets, including cryptocurrencies, Forex and commodities etc. In the current phase, 8 Cryptocurrencies, 4 Forex and 1 commodity assets will be supported.

3. Q: What are the fees that the protocol will charge? A: The position fee is charged when a trader opens or closes a position. It's calculated according to the volume of the position size and ratio based on the asset class. To maintain an open position, a rollover fee will also be charged. It's set according to the volatility of the underlying assets, the holding period, and the value of the collateral used. While a position is liquidated due to the liquidation process being triggered, there will also a liquidation fee be charged to execute the liquidation. For a limit order, while the terms are fulfilled, an execution fee will be charged to cover the gas cost that a keeper paid to execute the transaction.

4. Q: Why doesn't Panana charge the funding fee? A: Many perpetual futures platforms charge traders a funding fee as a mechanism to prevent the OI(Open Interest) constantly increasing during a one-sided market condition, which will bring a high risk for the LPs to their resilience. In the current Beta phase, instead of the passive AMM model that many perpetual DEXs have adopted, the team collaborates with a cautiously selected market maker, who uses an active market-making strategy to maintain its resiliency. This enables Panana to offer traders a more competitive fee structure and fair market prices.

5. Q: Why is there a 24 to 48-hour withdrawal delay? A: The withdrawal delay setting is determined to protect regular traders’ interests from being harmed by front-running, as well as keep the whole protocol running sustainably. Under the withdrawal delay, all withdrawal requests that are raised on the same day(UTC +0) will be executed by the end of the next day, in a single transaction. Traders do not need to worry about their profits becoming unrealizable due to front-running from other traders.

6. Q: Why can't Forex and commodities be traded on the weekend? A: The trading hours for Forex and commodity markets significantly differ from those of the cryptocurrency market. Prices for Forex and commodities are set by traditional financial markets, which are closed on weekends. Furthermore, trading in these markets is often unavailable on holidays, particularly in the U.S. and UK, due to low liquidity.

If you still have questions, feel free to contact us at [e-mail] or directly ask us on our Discord server.