Derify Protocol Documents


In Derify protocol, the index you see is the actual price you trade.
Assuming that there is a short position of ETH price index, with 10x leverage and liquidation price of 1000USDT. If the index is at 990USDT, the position still remains; however, if an irrelevant transactions changed the index to 1000USDT, then the position will be liquidated by accident.
It is apparent that these situations are not allowed to happen, otherwise the system would be exposed to significant risks.
We use index from Oracles directly, which is calculated as weighted average price excluding outliers using the following formula:
Our index is always synchronized with external markets, zero slippage is guaranteed.
We will also provide open-source price verification tools for traders to verify the index and ensure the reliability.