Adjusting Maintenance Margin (MM) For Positions & Add Liquidation Fee

After publicly launching the MUX protocol for one month, we witnessed great trading volume and active usage of 100x leveraged trading.

Considering the ever-changing market condition and overall risks that the protocol and MUXLP pool face, the MUX team will change the maintenance margin (MM) from 0.1% to 0.5%. For traders, please be mindful of position risk management after this update goes live.

Also, a liquidation fee will be added to the fee structure; after a position gets liquidated, the remaining 0.5% (if exists) margin will be collected as a fee. The liquidation fee will be shared between external MUXLP shakers, veMUX holders and POL, the same as how the collected position fee is allocated.

This update will become effective on Sept. 6th UTC, 2022. The MUX team will continue to evaluate MM, and we’ll make further improvements in the future based on analysis. Please let us know if you have any questions.