HMX – Decentralized Perpetual Exchange Review
What is HMX?
HMX serves as a cutting-edge, decentralized perpetual protocol that incorporates cross-margin and multi-asset collateral support on the Arbitrum network. Unique features that HMX extends to its users include:
+The ability to establish long or short positions with leverage across a variety of asset classes like Cryptocurrency, Forex, and Commodities.
+An array of crypto assets are accepted for collateral, paired with cross-margin collateral support, facilitating versatile risk and position management.
One of HMX’s standout features is its collateral management. It’s the sole pool-based decentralized perpetual protocol providing cross-margin collateral management and the freedom to use a range of assets as collateral.
Multi-Asset Collateral
HMX accommodates various assets as collateral, offering two significant advantages to traders:
+There’s no need to convert existing holdings into specific assets to commence trading.
+Multiple trading strategies like carry trade or max long strategy can be effectively implemented (e.g., using ETH as collateral to long ETH).
Risk Management
In the context of risk management, HMX assigns a loan-to-value (LTV) ratio to each collateral asset, which in turn establishes the borrowing power and liquidation thresholds for each account.
Currently supported assets on HMX are USDC, USDT, DAI, GLP, BTC, ETH, and ARB, covering three asset classes with varying maximum leverage:
+Cryptocurrencies: 100XForex: 1000XCommodities: 50X
Fees
+Leveraging re-hypothecated liquidity from GMX’s GLP, HMX offers trading fees below market rates. Fees are categorized into:
+Trading Fees: Calculated as a percentage of the position size and vary by asset class.
+Borrowing Fees: Aligned with the position size and compensate market makers (HLP depositors) based on the asset utilization rate.
+Funding Fees: Levied on trader positions to balance long and short open interest (OI).
For more: https://decentralised.news/hmx-decentralized-perpetual-exchange-review
What is HMX?
HMX serves as a cutting-edge, decentralized perpetual protocol that incorporates cross-margin and multi-asset collateral support on the Arbitrum network. Unique features that HMX extends to its users include:
+The ability to establish long or short positions with leverage across a variety of asset classes like Cryptocurrency, Forex, and Commodities.
+An array of crypto assets are accepted for collateral, paired with cross-margin collateral support, facilitating versatile risk and position management.
One of HMX’s standout features is its collateral management. It’s the sole pool-based decentralized perpetual protocol providing cross-margin collateral management and the freedom to use a range of assets as collateral.
Multi-Asset Collateral
HMX accommodates various assets as collateral, offering two significant advantages to traders:
+There’s no need to convert existing holdings into specific assets to commence trading.
+Multiple trading strategies like carry trade or max long strategy can be effectively implemented (e.g., using ETH as collateral to long ETH).
Risk Management
In the context of risk management, HMX assigns a loan-to-value (LTV) ratio to each collateral asset, which in turn establishes the borrowing power and liquidation thresholds for each account.
Currently supported assets on HMX are USDC, USDT, DAI, GLP, BTC, ETH, and ARB, covering three asset classes with varying maximum leverage:
+Cryptocurrencies: 100XForex: 1000XCommodities: 50X
Fees
+Leveraging re-hypothecated liquidity from GMX’s GLP, HMX offers trading fees below market rates. Fees are categorized into:
+Trading Fees: Calculated as a percentage of the position size and vary by asset class.
+Borrowing Fees: Aligned with the position size and compensate market makers (HLP depositors) based on the asset utilization rate.
+Funding Fees: Levied on trader positions to balance long and short open interest (OI).
For more: https://decentralised.news/hmx-decentralized-perpetual-exchange-review
