Volatility Perpetuals

This perpetual contract tracks the short-term VIX futures roll, providing exposure to the implied volatility of the U.S. stock market.

Characteristic	Description
What it Tracks	A blend of the front two VIX futures contracts (VX1/VX2) with a daily roll weight λₜ.
Index Definition	Xt = (1-λt)m₁(t) + λt m₂(t) where m₁ and m₂ are the mid-quotes of VX1 and VX2.
Oracle Type	A Session-Selected Oracle that uses different methodologies based on underlying market hours.
Market Type	Cash-Settled Index Perpetual.
PnL Formula	PNL (Long) = (Exit_Price - Entry_Price) × Position_Size + Total_Funding_Received PNL (Short) = (Entry_Price - Exit_Price) × Position_Size + Total_Funding_Received Where: Entry_Price / Exit_Price: The price at which a position is opened and closed, respectively. Position_Size: The number of VXXN contracts in a position. Total_Funding_Received (or Total_Funding_Paid): The sum of all hourly funding payments accrued over the duration of the position. This value can be positive (if a user were paid by the other side) or negative (if the user paid the other side).
Use Cases	Long (Profit from rising fear): • A direct, capital-efficient hedge against broad market downturns. • A speculative tool to position for volatility spikes around major economic events (e.g., CPI, FOMC). Short (Earn the volatility premium): • Earn the "yield" generated from volatility's natural decay during calm or bullish markets. • A way to express a view that market fear is overpriced.
Users	• Portfolio Managers & DAOs (Hedgers) • Macro Traders & Event-Driven Funds (Speculators) • Sophisticated Retail Traders
Vol-stat (σ)	High: the VXXN is a high-volatility product by design and can experience double-digit percentage moves in a single day. Risk parameters are set accordingly.
Margin Numbers	Derived from the Max Leverage tiers. For the initial 3x leverage tier, the Initial Margin (IM) is ~33.3% of the notional position value.

See additional market mechanics and parameters