# Volatility Indices

### Volatility Index (VXX‑USDYP)

A perpetual contract that tracks short‑term VIX futures roll dynamics—capital‑efficient exposure to U.S. implied volatility. 

<table><thead><tr><th width="202.3828125">Key Parameters</th><th width="377.6171875">Details</th></tr></thead><tbody><tr><td>Collateral</td><td>USDYP</td></tr><tr><td>Initial Oracle Price</td><td>25.000</td></tr><tr><td>Open Interest Cap</td><td>$10,000,000</td></tr><tr><td>Funding Multiplier</td><td>1</td></tr></tbody></table>

### Oracle & marking

This market uses session‑aware oracle logic designed to reduce off‑hours noise:

* **Open (U.S. equity hours):** 100% weight to Pyth `equity-us-vxx-usd`
* **Close (overnight):** blended reference (Pyth + venue mark), plus a small proxy discovery signal
* **Weekend:** frozen at last session close

The intent: stable marking when the underlying venue is closed, without creating huge gaps at the next open.

### Funding setup

The market includes a **fixed interest‑rate component**:

* `setFundingInterestRates: +0.0037 per 8hr` (≈ +40% APY)

Mechanically:

* **Shorts pay longs the fixed leg** (regardless of premium),
* plus normal premium‑based funding (multiplier = 1).

### Strategies

* **Go long:** hedge crash risk / express a volatility spike view.
* **Go short:** earn volatility risk premium (VRP) and decay in calm regimes.

### Notes & risks

Volatility products can gap. Use conservative leverage and respect liquidation mechanics.

[See additional market mechanics and parameters](https://docs.nunchi.trade/market-mechanics-and-parameters#vxx-perp-market-parameters)


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