# About LEXER Markets Decentralized perpetual exchange for Crypto, Forex, NFTs & more.
Lexer is a decentralized perpetual trading platform supporting a wide range of markets with deep liquidity.\ \ The core features of Lexer are: * Crypto, Forex, NFT and Indices markets * Up to 100x leverage * High real yield liquidity provision without impermanent loss * Advanced risk management ## How does LEXER work and what makes it unique? Lexer is powered by its one-of-a-kind **Hybrid Liquidity Engine** and **Smart Router** on top of an evolving group of **Oracle-based Settlement Algorithms**.

Lexer Architecture

### What is Oracle-based Settlement Algorithm? Oracle-based settlement algorithm is a group of transaction settlement algorithms that rely on data from on-chain oracles, instead of liquidity reserves as in CFMM based models or liquidity depth in order-books.

Different settlement models

#### Advantages * No price impact * Low to zero slippage * Instant settlement * High capital efficiency for liquidity provision * Enabling markets without physical inventory #### Challenges * Individual liquidity models only work well for specific types of assets and functions * Advanced risk management for LP is required for different market conditions * Oracle manipulation and front-running attacks

Individual models work best only for specific markets and cases

### What is the Hybrid Liquidity Engine and how does it overcome these challenges? The Hybrid Liquidity Engine combines multiple liquidity models into a single trading platform. Instead of trying to make one model fit all use cases and markets, the hybrid engine makes use of the strengths from each model without the weaknesses, thus enabling more markets easily without compromises. More on the Hybrid Liquidity Engine [here](#what-is-hybrid-liquidity-engine).

The Hybrid Engine makes use of the strengths from each model without the weaknesses

### What is the Smart Router? The Smart Router is the decision-making mechanism that routes trades into the right liquidity engine in order to optimize efficiency and performance. The Smart Router determines the best route for each trade to bring proper utilization and balance between engines, which can help to improve the trading experience. Additionally this provides the possibility of integrating more trading engines into Lexer, which ultimately opens up the platform to more variety and market availability. More on the Smart Router [here](/innovations-and-mechanism/smart-router).

Smart router unifies access to multiple LP engines and provides frictionless experience

## What Lexer v2 can do for... **Traders** * Access to a wide range of markets with deep liquidity * A seamless trading experience **Liquidity Providers** * High real yield opportunities without impermanent loss * Flexibility to choose what types of markets to back and earn risk-adjusted returns **Ecosystem** * Cross-protocol margining is made possible * New potential legos for building advanced Defi strategies # Social Links 🐦 Twitter: 📝 Medium: 💬 Discord: 🌎 Website: \
# Roadmap
## LEXER v1: Isolated Multi-Asset Pools When it comes to liquidity risk management, the key is in the concept of isolation. Risk exposure can be limited through effective firewalls that safeguard user liquidity. However, isolation typically comes with a cost. In the context of perpetual exchange, it can potentially lead to liquidity fragmentation and reduced capital concentration, which can limit traders and provide inefficient yields for the liquidity providers. Prioritizing both efficiency and risk management, Lexer's v1 launch introduced two isolated XLP pools with carefully selected underlying assets and configurations: ### **The CoreCrypto Pool** Facilitating essential trading activities and providing limited market exposure to liquidity providers, CoreCrypto is a pool comprised of the primary pillars of crypto assets: * **BTC** * **ETH** * **USDC & USDC.e** * **USDT** ### **The Arbi Pool** As an Arbitrum native builder, LEXER focuses on promoting the mass adoption of ARB as a native asset. With this in mind, the Arbi Pool effectively enables new markets and lucrative yield opportunities within the Arbitrum ecosystem. This pool features an Arbitrum foundation of crypto assets: * **ARB** * **ETH** * **USDC & USDC.e** ## LEXER v2: Synthetic Engines and Enhanced Risk Management To enable the motto of “Long and Short Everything”, synthetic engines are a must for our trading platform. However, instead of the settlement or margining system, the key to a successful synthetic system is found in its risk management. Standing on the shoulders of giants, with innovation from the team, LEXER v2 aims to provide unmatched liquidity and user experience: **Synthetic Pools: Enabling More Markets** * Forex Pool * AltCrypto Pool * NFT Pool * RWA Pool **Smart Router: A Smooth Trading Experience** * Unified trade routing * Unified position management * Unified liquidity provision **Enhanced Risk Management: Above-Standard LP Protection** * Decentralized low-latency oracle * Dynamic funding rate * Enhanced monitoring and alerts * Security bounties With these new v2 additions, the LEXER team will continue to strive for what was originally promised, but bigger, better, and worth the wait. \ \ Read more about LEXER roadmap:
# Security Operational Security and Audits ### Operational Security Lexer uses a 3/3 multisig with a 24-hour timelock on all deployer contracts. The Lexer core team practices strict 2FA and internal security for all vital databases and socials. ### Audits Lexer V2 has been audited by 0xWeiss & 0xKato through the Hyacinth audit firm. The full audit report can be found below: {% file src="/files/jpKTM7VRYiwv3nGQpnrW" %} # Contract Address | | Smart Contract - Vault | | ------------------------------------------------------------------------ | ---------------------------------------- | | | Smart Contract - Router | | | Smart Contract - XlpManager | | | Smart Contract - RewardRouterV2 | | | Smart Contract - XLP | | | Smart Contract - LEX | | | Smart Contract - ES\_LEX | | | Smart Contract - StakedLexTracker | | | Smart Contract - FeeLexTracker | | | Smart Contract - StakedXlpTracker | | | Smart Contract - FeeXlpTracker | | | Smart Contract - StakedLexDistributor | | | Smart Contract - FeeLexDistributor | | | Smart Contract - StakedXlpDistributor | | | Smart Contract - FeeXlpDistributor | | | Smart Contract - LexVester | | | Smart Contract - XlpVester | | | Smart Contract - Timelock | | | Smart Contract - OrderBook | | | Smart Contract - Vault\_2 | | | Smart Contract - Router\_2 | | | Smart Contract - XlpManager\_2 | | | Smart Contract - RewardRouter\_2 | | | Smart Contract - XLP\_2 | | | Smart Contract - StakedXlpTracker\_2 | | | Smart Contract - FeeXlpTracker\_2 | | | Smart Contract - StakedXlpDistributor\_2 | | | Smart Contract - FeeXlpDistributor\_2 | | | Smart Contract - XlpVester\_2 | | | Smart Contract - OrderBook\_2 | # Terms of Use Last update: 1 September 2023 This Term of Use Agreement, together with the privacy policy ( “Privacy Policy”) and/or any additional agreement (collectively the “Agreement”) that LEXER and/or its affiliates (collectively as “we”, “our”, “us”, “LEXER” or the “Company”) publicly posts under this website or make available to any visitors on this website, are entered into between Lexer and you as a visitor of this website or as a user access to any Lexer application (“User”, “you” or “your”), in relation to your use of, and access to this website, including all web applications, services and/or any associated websites or applications linked thereto with Lexer (any materials, services, applications available therein are collectively referred to as the “Site” or the “Website”). PLEASE READ THE AGREEMENT CAREFULLY BEFORE USING OR ACCESSING THE WEBSITE AND REVIEW THEM PERIODICALLY AND REGULARLY FOR CHANGES. BY VISITING OR ACCESSING THE WEBSITE, REGISTERING FOR OR USING OR ANY PART THEREOF, YOU AGREE TO BE BOUND BY THE AGREEMENT AND AGREE THAT SUCH AGREEMENT CONSTITUTE A LEGALLY BINDING AGREEMENT BETWEEN YOU AND US. IF YOU DO NOT AGREE TO BE FULLY BOUND BY ALL OR ANY OF THE AGREEMENT, YOU SHOULD EXIT THE SITE IMMEDIATELY AND NOT TO MAKE ANY USE OF THE WEBSITE OR OUR SITES. PLEASE NOTE THAT WE RESERVE THE RIGHT, AT OUR SOLE DISCRETION, TO REVISE THE AGREEMENT, AT ANY TIME WITHOUT NOTICE. IF YOU DO NOT AGREED WITH ANY REVISED TERM UNDER THE AGREEMENT, YOU MUST EXIT THE WEBSITE IMMEDIATELY AND STOP USING THE SITE. THE WEBSITE AND ANY SERVICES PROVIDED BY THE COMPANY ARE NOT AVAILABLE TO PERSONS OR ENTITIES WHO ARE RESIDE IN, CITIZENS OF, LOCATED IN, INCORPORATED IN OR HAVING A REGSITERED OFFICE IN THE UNITED STATES OF AMERICA AND CANADA (“BLOCKED PERSONS”). LEXER DOES NOT MAKE ANY EXCEPTIONS. THEREFORE IF YOU ARE A BLOCKED PERSON, DO NOT ATTEMPT TO USE THE WEBSITE OR ANY SERVICE OF THE COMPANY. USE OF A VIRTUAL PRIVATE NETWORK (VPN) TO CIRCUMVENT THE RESTRICTIONS SET FORTH IS PROHIBITED. 1\. THE WEBSITE, ACCESS AND USE OF THE SITE. 1.1 The Website provides information of the Company, the Company’s applications, software and blockchain protocol developed by the Company and allow User to access with such information and to use of the Company’s application and blockchain protocol. 1.2 The Website is offered on a self-service basis and may charge fees for interacting with the blockchain, i.e. “gas fees”, for the use or access on the Site. 1.4 When visit or use the Website, you represent and warrant that: (i) you have reached the legal age and capacity to form a binding contract in your jurisdiction and have the full capacity to accept this Agreement and enter into transactions as a result of using the website; (ii) in the event of registering with us, you have provided us with accurate, true and complete information about yourself (including, but not limited to, your name and email address); (iii) you are not a Blocked Persons or a resident, national, or agent of Antigua and Barbuda, Algeria, Bolivia, Belarus, Crimea Region, Iran, Iraq, Libya, Myanmar, North Korea, Russia, Syria, Somalia or any jurisdictions as may be designated by the Company or any country to which the United States, the United Kingdom or the European Union impose sanctions from time to time (“Restricted Jurisdictions”); (iv) you are not a member of any sanctions list or equivalent maintained by the United States, the United Kingdom or the European Union governments; (v) if you are entering into this Agreement as an entity or you represent one or more businesses or franchises, that you are acting as their authorized representative, and that both you and the entity you represent will be bound by the Agreement; (vi) your usage of the Website is and will be in full compliance with all laws and regulations, applicable to your use of the webiste is not prohibited by any applicable laws or regulations, and is not for illegal or immoral purpose; (vii) you do not, and will not, use VPN software or any other privacy or anonymization tools or techniques to circumvent, or attempt to circumvent, any restrictions that apply to the Site; (viii) your registration or your use of the website will be consistent with the foregoing license, covenants and restrictions, and you are not infringing nor violating the rights of any other party; (ix) you certify that any digital assets used by you to connect to any applications or blockchain protocol on the Site are either owned by you or that you are validly authorized to carry out the transaction, and that all transactions initiated from your own digital asset wallet and not on behalf of any other person or entity; (x) in connection with using the Site or any applications or blockchain protocol on the Site, you will only transfer legally obtained digital assets that belong to you; (xi) you will maintain the security and confidentiality of your private keys associated with digital asset wallet(s), passwords, API keys, and/or other credentials; (xii) you agree to abide by any relevant laws or regulations in your jurisdiction, including but not limited to reporting any trading activities or profits for taxation purposes, if any. 1.5 As a condition to visiting the Website and/or using or accessing any applications or blockchain protocol on the Website, you acknowledge and agree the following: (i) we reserve the right to suspend or terminate, according to our sole discretion and without providing any prior notice, our service and/or your access to the Website, in the event that (a) when we reasonably suspect that you have breached any of the Agreement, (b) when we reasonably suspect fraudulent or illegal activities, or (c) when the Agreement has been terminated; (ii) from time to time the Site and the applications or protocol linked to the Site may be inaccessible or inoperable for any reason, including but not limited to (a) technical malfunctions; (b) periodic maintenance procedures or repairs that Lexer or its vendors or contractors may undertake; (c) causes or events beyond the Company’s control or reasonably foresee; (d) disruption and temporary or permanent unavailability of underlying blockchain infrastructure; or (e) unavailability of third-party service providers or external partners for any reason; (iii) the Website and the applications or protocol linked therein may evolve, which means Lexer may apply changes, replacement or discontinue (whether temporarily or permanently) the Website and/or any applications or protocol at any time at our sole discretion; (iv) Lexer does not act as an agent for you or any other Users of the Site; (v) we owe no responsibilities or liabilities to you or any other party, and to the extent any such responsibilities or liabilities may exist, you hereby irrevocably waive, disclaim and withdraw all these responsibilities and liabilities; (vi) we have no control over, or liable to, the delivery, safety, legality or any other aspect of any digital assets that you may transfer to or from a third party, whether under the Lexer’s application or protocol, and if you experience any problem with any transactions of digital assets, you bear all foreseeable or non-foreseeable risks; (vii) All information provided in connection with your visit or your access and use of the Site is for informational purposes only and should not be construed as investment, financial, legal, tax, or any professional advice. You should not take, or refrain from taking, any action based on any information contained on the Site, or any information that we make available at any time. You should take independent professional advice if you are in doubt of whether visit, use or access to the Site. 1.6 You are solely and wholly responsible for the security of your digital asset wallet and we urge you to keep your wallet private address, your account password secure and to always log-off when leaving the website. 1.7 You acknowledge and agree that you are solely and wholly responsible for obtaining and maintaining any hardware, facilities, connections, licenses, permits, database, equipment, external software or any other resources as may be required and/or necessary for the use of the website (such as, computer, mobile device, internet connection and telecommunications) and any relevant payment system. You agree that we will not bear any liability for any cost, expense, loss or other damage you may suffer directly or indirectly with respect to such hardware, facilities, connections, licenses, permits, database, equipment or external software or any other resources as may be required, in connection with use of the website. 1.8 You agree to defend and indemnify the Company and any of their officers, directors, employees and agents from and against any claims, causes of action, demands, recoveries, losses, damages, fines, penalties or other costs or expenses of any kind or nature including but not limited to reasonable legal and accounting fees, brought by third parties as a result of (1) your breach of this agreement or the documents referenced herein; (2) your violation of any law or the rights of a third party; or (3) your use and access of our service and/or this Website. 2\. PROHIBITED ACTIVITY By visiting, using or accessing the Site, you confirm that you will not use the Site for the following: (i) violate any laws in any competent jurisdictions, including but not limited to any anti-money laundering and anti-terrorist financing laws and sanctions programs; (ii) engage in any transactions or dealing that infringe or violate any copyright, trademark, patent, privacy or any other proprietary right under any laws of a competent jurisdictions; (iii) use the Site in any manner that could interfere with, disrupt, affect or inhibit other visitors or users from fully enjoying the Site, or that may damage, disable, overburden, or impair the functioning of the Site in any manner; (iv) circumvent any content-filtering techniques, security measures or access controls that Lexer employs on the Site, such as through the use of VPN; (v) use any software or any automated means not provided or consent by us, to access the Site or to extract data, or introduce any malware, virus, trojan horse, worm, logic bomb, drop deal device, backdoor, shutdown mechanism or other harmful material to the Site; (vi) providing false, inaccurate, or misleading information while using the Site; (vii) use or access the Site to transmit or exchange any digital assets that are related to any criminal or illegal activities; (viii) use the Site from a jurisdiction that the use of the Site is prohibited; (ix) harass, abuse, or harm of any other person, entity, or any staffs of Lexer or service providers; (x) impersonate another user or otherwise misrepresent yourself. 3\. OWNERSHIP. 3.1 The Website, including any enhancements, derivatives and improvements thereof, are the sole property of Lexer. Without limitation of the foregoing, all the text, images, sounds, music, marks, logos, compilations (meaning the collection, arrangement and assembly of information) and other content on the Website (collectively, the “Content”), and all software, blockchain protocol, API keys, source code, and/or any technical material embodied in the website or otherwise used by Lexer to deliver the website’s function (“Software”), are the property of Lexer and are protected by copyright and other intellectual property laws. Nothing in the Agreement shall grant the User any of such property and/or ownership. 3.2 Any rights with respect to the Software or the Content which are not expressly granted here by Lexer are reserved by Lexer. 3.3 You agree not to copy, imitate, or use the Content without prior consent of Lexer or the applicable licensors. 4\. INTELLECTUAL PROPERTY LICENSE, RESTRICTION. 4.1 We grant you a personal, revocable, non-assignable, non-perpetual and non-exclusive right to access and use the website as a licensee, provided that you fully comply with the Agreement. 4.2 You shall not remove any copyright, trademark or other proprietary notices that have been placed on the website. 4.3 You shall not exploit the website in any unauthorized way whatsoever, including but not limited to trespass or materially burden network capacity and you shall not use the website for any illegal or immoral purpose, or in violation of any applicable laws and regulations, such as laws governing intellectual property and other proprietary rights, data protection and privacy, anti-money laundering and currency control. You acknowledge that you are fully responsible for satisfying any legal and regulatory requirements applicable in countries and territories in which you operate. 4.4 We reserve the right to apply limits on the use of the website, for example, by limiting the available features, or number of supported Users and / or transactions. We further reserve the right to publish such limitations, make them different from User to User, or change such limitations at will, in each case in our sole discretion. 4.5 You hereby grant us a royalty-free, fully paid-up, sublicensable, transferable, perpetual, irrevocable, non-exclusive, worldwide license to use, copy, modify, create, display, perform, publish and distribute, in any form, medium, or manner, any content that is available to other users as a result of your use of the Site (“User Content”), including but not limited to for promoting Lexer, its affiliates, or the Site. 4.6 You warrant that you own the User Content and have the right to grant and license to Lexer and that such license does not and will not violate, misappropriate or infringe any third party’s rights. 5\. USER VERIFICATION, COMPLIANCE AND RESTRICTION. 5.1 You hereby authorize us, directly or through our third-party service providers, to take any measures that we consider necessary to verify your identity, conduct analysis on your digital wallet address(es), and to take any action we deem necessary based on the results. 5.2 Blocked Persons or any persons or located in the countries specified as Restricted Jurisdictions are not permitted to use the Website. This restriction also applies to residents and citizens of other nations while located in a Restricted Jurisdictions. The fact that the Website is accessible in a Restricted Jurisdictions, or that the Website allows the use of the official language of a Restricted Jurisdictions, shall not be construed as a license to use the Website in such Restricted Jurisdictions. Any attempt to circumvent this restriction, for example, by using a virtual private network, proxy or similar service that masks or manipulates the identification of your real location, or by otherwise providing false or misleading information regarding your citizenship, location or place of residence, or by using the website through a third party or on behalf of a third party located in a Restricted Jurisdictions is a breach of this Agreement. If it becomes apparent, or we have reasonable grounds to suspect, that you are a Blocked Persons or located in any of the Restricted Jurisdictions, this may result in blocking your access to the Website or our service, without an obligation to provide you with advance notice, all in accordance with applicable laws and agreements. 6\. FEES In accessing any applications or blockchain protocol on the Site or linked to the Site, you may require to pay all necessary fees for any transaction on the Ethereum blockchain network, including “gas fees”, as well as any other fees. The fees may vary from time to time due to various of considerations, including but not limited to network congestion. 7\. DATA COLLECTION. 7.1 You agree that we may periodically collect, store and use data (including, but not limited to technical information) in connection with your registration or use of the Site and other Website ( “Usage Data”). We may also collect information about Users who access through the website (“User Data”). In addition, our systems may automatically collect other data about your operations, depending on the specific technology used by you for the implementation of the website. 7.2 The Usage Data and User Data is our property. We may use such data: to provide our service to you and to others; to improve the website; to personalize and enhance the use of the website; to determine those areas which are useful or popular and those that are less; to keep record of correspondence with you; to address any issues that you are having with the website; to evaluate your use, preferences and trends for internal statistical and analytical purposes and in respect of operations and product development. We may also use the Usage Data and User Data to offer cross-promotions of Lexer. 7.3 We may, at our sole discretion, provide you with information ( “Confidential Information”). Any such information shall remain the property of Lexer. The User shall hold the Confidential Information in strict confidence. Without Lexer prior written consent, such Confidential Information shall not be disclosed by the User in whole or in part to any person other than those agents and employees of the User who need to know about the Confidential Information for the sole purposes of using our website. The User further agrees that Lexer’s Confidential Information, whether in written or electronic form, shall not be copied or reproduced at any time without Lexer’s prior written consent. In addition, in case the User receives and uses the Confidential Information, the User shall abide by our privacy policy as if you were Lexer in such privacy policy. 7.4 Lexer may share your personal and other information (“Information”) with our affiliate companies or third party to verify and validate information, and to address users matters. By using the Website and/or our service, you hereby agree to your Information will be passed to our affiliate companies or third party solely for the purpose to facilitate your usage of the Website or our service. While Lexer does not sell your information, we may need to share or pass your information with third parties acting on our behalf or as may be required by law, regulations or court order. We will use reasonable efforts to ensure that your Information is used in a reasonable manner and you hereby agree and permit Lexer to share your Information with regulators, law enforcement authorities and government agencies if Lexer is so requested. 7.5 Lexer will store your Information in accordance with the General Data Protection Regulation under European Union regulations (EU) 2016/679. All of our policies related to your Information shall be contained in the Private Policy. 8\. PROHIBITED USE, PROHIBITED BUSINESSES AND CONDITIONAL USE. 8.1 You may not engage in the following categories of activity ("Prohibited Uses"). The specific types of use listed below are representative, but not exhaustive. By accessing the Website or using our service, you confirm that you will not do any of the following: * Unlawful Activity: Activity which would violate, or assist in violation of, any law, statute, or regulation, sanctions programs administered in any countries, including but not limited to the persons or countries listed by the United States, the United Kingdom or the European Union impose sanctions, or which would involve proceeds of any unlawful activity; publish, distribute or disseminate any unlawful material or information; * Abusive Activity: Actions which impose an unreasonable or disproportionately large load on our infrastructure, or detrimentally interfere with, intercept, or expropriate any system, data, or information; transmit or upload any material to the Site that contains viruses, Trojan horses, worms, or any other harmful or deleterious programs; attempt to gain unauthorized access to the Site, computer systems or networks connected to the Site, through password mining or any other means; use information of another party to access or use the Site, except in the case of specific merchants and/or applications which are specifically authorized by a user to access such service and information; or transfer your access to a third party, unless by operation of law or with the express permission of Lexer; * Abuse Other Users: Interfere with another individual's or entity's access to or use of any the Services defame, abuse, extort, harass, stalk, threaten or otherwise violate or infringe the legal rights (such as, but not limited to, rights of privacy, publicity and intellectual property) of others; incite, threaten, facilitate, promote, or encourage violent acts against others; harvest or otherwise collect information from the Site about others, including without limitation email address, without proper consent; * Fraud: Activity which operates to defraud Lexer, or any other person; provide any false, inaccurate, or misleading information to Lexer; * Gambling: Lotteries; bidding fee auctions; sports forecasting or odds making; fantasy sports leagues with cash prizes; internet gaming; contests; sweepstakes; games of chance; and * Intellectual Property Infringement: Engage in transactions involving items that infringe or violate any copyright, trademark, right of publicity or privacy or any other proprietary right under the law, including but not limited to sales, distribution, or access to counterfeit music, movies, software, or other licensed materials without the appropriate authorization from the rights holder; use of Lexer intellectual property, name, or logo, including use of Lexer trade or service marks, without express consent from Lexer or in a manner that otherwise harms Lexer or the Lexer brand; any action that implies an untrue endorsement by or affiliation with Lexer. 9\. WARRANTIES AND DISCLAIMER. YOU ACKNOWLEDGE, THAT TO THE MAXIMUM EXTENT PERMITTED BY APPLICABLE LAW, THE WEBSITE AND OTHER MATERIALS PROVIDED TO YOU BY LEXER, ARE PROVIDED ON AN “AS IS” BASIS. OTHER THAN EXPRESSLY PROVIDED UNDER THE AGREEMENT, LEXER GIVES NO OTHER WARRANTIES, EXPRESS, IMPLIED, STATUTORY OR IN ANY COMMUNICATION WITH USER. THE USE OF THE WEBSITE AND RELIANCE ON THE CONTENT AVAILBLE IS DONE SOLELY AT YOUR OWN RISK. LEXER DISCLAIMS ANY AND ALL WARRANTIES RELATING TO THE SITE, THEIR CONTENT AND OTHER MATERIALS, EXPRESS OR IMPLIED, INCLUDING, BUT NOT LIMITEDTO THEIMPLIED WARRANTIES OF NON-INFRINGEMENT OF THIRD PARTY RIGHTS, SATISFACTORY QUALITY, AVAILABILITY, SECURITY, TITLE, ABILITY TO OPERATE AND FITNESS FOR A PARTICULAR PURPOSE. ANY RELIANCE ON THE WEBSITE IS AT THE USER’S OWN RISK. LEXER DOES NOT WARRANT THAT THE WEBSITE WILL MEET YOUR REQUIREMENTS, AND DOES NOT GUARANTEE THAT THE USE OR OTHER EXPLOITATION OF THE SITE WILL LEAD TO CERTAIN RESULTS. NO ADVICE OR INFORMATION, WHETHER ORAL OR WRITTEN, OBTAINED BY YOU FROM LEXER OR THROUGH THE WEBSITE WILL CONSTITUTE ANY WARRANTY AND/OR REPRESENTATION. WE DO NOT WARRANT NOR REPRESENT THAT ANY CONTENT OR THE WEBSITE PROVIDED WILL BE ACCURATE OR ERROR-FREE, THAT ACCESS THERETO WILL BE UNINTERRUPTED, THAT ALL DEFECTS WILL BE CORRECTED, OR THAT THE SERVERS, AND THE CONTENT AVAILABLE THERE THROUGH IS OR WILL BE FREE OF VIRUSES OR OTHER HARMFUL COMPONENTS. LEXER MAY PAUSE OR INTERRUPT THE WEBSITE AT ANY TIME, AND USERS SHOULD EXPECT PERIODIC DOWNTIME FOR UPDATES TO THE WEBSITE. WE WILL NOT BE LIABLE TO YOU OR ANY THIRD PARTY FOR ANY DIRECT, INDIRECT, INCIDENTAL, SPECIAL, CONSEQUENTIAL OR EXEMPLARY DAMAGES (INCLUDING DAMAGES FOR LOSS OF PROFITS, GOODWILL, USE, OR DATA), EVEN IF A PARTY HAS BEEN ADVISED OF THE POSSIBILITY OF SUCH DAMAGES. FURTHER, WE WILL NOT BE RESPONSIBLE FOR ANY COMPENSATION, REIMBURSEMENT, OR DAMAGES ARISING IN CONNECTION WITH YOUR INABILITY TO USE THE WEBSITE, INCLUDING AS A RESULT OF ANY (I) TERMINATION OR SUSPENSION OF THE AGREEMENT OR YOUR USE OF OR ACCESS TO THE WEBSITE, (II) OUR DISCONTINUATION OF ANY OR ALL OF THE WEBSITE, OR, (III) WITHOUT LIMITING ANY OBLIGATIONS UNDER ANY SEPARATELY AGREED SERVICE-LEVEL AGREEMENTS, ANY UNANTICIPATED OR UNSCHEDULED DOWNTIME OF ALL OR A PORTION OF THE WEBSITE FOR ANY REASON, INCLUDING AS A RESULT OF POWER OUTAGES, SYSTEM FAILURES OR OTHER INTERRUPTIONS; (B) THE COST OF PROCUREMENT OF SUBSTITUTE GOODS OR WEBSITE; (C) ANY INVESTMENTS, EXPENDITURES, OR COMMITMENTS BY YOU IN CONNECTION WITH THIS AGREEMENT OR YOUR USE OF OR ACCESS TO THE WEBSITE; OR (D) ANY UNAUTHORIZED ACCESS TO, ALTERATION OF, OR THE DELETION, DESTRUCTION, DAMAGE, LOSS OR FAILURE TO STORE ANY OF YOUR CONTENT OR OTHER DATA. 10\. LIABILITIES, INDEMNITIES & DISCLAIMER 10.1 You shall, upon our demand, defend, indemnify, and hold harmless us, and each of our respective employees, officers, directors, and representatives from and against any claims, damages, losses, liabilities, costs, expenses (including but not limited to debt collection expenses) and legal fees (including reasonable attorneys’ fees) arising out of or relating to any third party claim. If we are obligated to respond to a third-party subpoena or other compulsory legal order or process described above, you shall also reimburse us for legal costs, as well as our employees’ and contractors’ time and materials spent responding to the third-party subpoena or other compulsory legal order or process at our then-current hourly rates. 10.2 You shall indemnify us on demand for any damages and additional expense (including but not limited to legal costs and debt collection expenses) Lexer may suffer or incur, directly or indirectly, as a result of unlawful actions conducted by you. 10.3 The information, software, products, and services published on this website may include inaccuracies or typographical errors. In particular, Lexer does not guarantee the accuracy of and disclaim liability for inaccuracies relating to any information or descriptions displayed on this website. 10.4 Lexer makes no representations about the suitability of the information, software, and services contained on this website for any purpose, and displaying or promotion of any digital assets on this website does not constitute any endorsement or recommendation of investment. Nothing on the Website constitute any investment advice or any inducement of investment. 10.5 In no event shall Lexer be liable for any direct, indirect, punitive, incidental, special, or consequential damages arising out of, or in any way connected with, the use of this website with the delay or inability to use this website, or for any services obtained through this website, or otherwise arising out of the use of this website, whether based on contract, tort, strict liability, or otherwise, even Lexer, its affiliates, and/or their respective suppliers have been advised of the possibility of damages. 10.6 You agree to defend and indemnify Lexer and any of their officers, directors, employees and agents from and against any claims, causes of action, demands, recoveries, losses, damages, fines, penalties or other costs or expenses of any kind or nature including but not limited to reasonable legal and accounting fees, brought by: * you or on your behalf in excess of the liability described above; or * by third parties as a result of (1) your breach of this agreement or the documents referenced herein; (2) your violation of any law or the rights of a third party; or \ (3) your use of this website.
11\. TERM, TERMINATION AND SURVIVAL. 11.1 The Agreement shall, in addition to any other terms and conditions, be as agreed between Lexer and the User, and in absence of any other indications the Agreement shall commence upon your visit to the Website, and shall remain valid until further written notice is given by Lexer. 11.2 Without prejudice to other provisions (especially clause 11.1 above) in the Agreement, Lexer may terminate the Website, the Agreement and all rights granted hereunder immediately and without notice. 12\. THIRD PARTY WEBSITES. 13.1 Lexer may link to other third-party websites for convenience only and are not part of the Site. Lexer does not endorse, confirm or support the contents of third-party websites. Lexer is not responsible for the content of a third-party website and cannot attest to the accuracy and completeness of such content. You acknowledge that your use of any third-party website is at your own risk. 13\. CYBERATTACKS AND MODIFICATIONS ON BLOCKCHAIN NETWORK. 13.1 Notwithstanding Lexer shall use its best endeavours to provide network and cybersecurity to all users, Lexer may not have any ability to prevent or mitigate cyberattacks and modifications on the blockchain networks (“Modification”), and Lexer does not guarantee any insurance will be cover any cyberattack. Lexer reserves the right to take commercially reasonable actions in such event. 14\. RISK 14.1 By accessing the Site and/or its applications or protocol, you represent and warrant that you understand and are aware the inherent risks associated with cryptographic system, blockchain-based networks, digital assets and smart contract. 14.2 Lexer do not have access to your private key(s) of your digital assets wallet. Losing control of your private key(s) will permanently and irreversibly deny your access to Digital Assets and neither Lexer nor any third party may be able to retrieve or protect your digital assets. 14.3 Your digital assets could be impacted by regulatory inquiries or regulatory actions, which could impede or limit the ability of Lexer to continue to make available the Site, its applications or the protocol, which may also limit your ability to access or use the Site 14.4 You hereby assume and agree that Lexer will have no responsibility and liability for any risks related to digital assets, your use or access of the Site, and or any actions or transaction, regardless of whether it is linked or associated with the Site. 15\. MISCELLANEOUS. 15.1 Lexer and the User are and intend to remain independent parties. Nothing in the Agreement shall be deemed or construed to create the relationship of principal and agent or of partnership or joint venture between Lexer and the User. 16.2 The Agreement represents the entire agreement between Lexer and User and supersedes any and all other agreements between the parties, whether written or oral, regarding the subject matter hereof (but not include any add-on services as may be requested by the User). Unless otherwise specified in writing by Lexer, The Agreement shall govern and supersede any other agreement entered into between Lexer and you. Lexer may assign its rights or obligations pursuant to the Agreement while the User agrees not to assign any rights under the Agreement without Lexer’s explicit written consent. Any translation of the Agreement is provided for your convenience only and in case of any conflict, the English version shall prevail. 16.3 No waiver of any term of the Agreement shall be deemed a further or continuing waiver of such term or any other term, and any failure to assert any right or provision under the Agreement shall not constitute a waiver of such term. 16.4 The section titles in the Agreement are solely used for the convenience and have no legal or contractual significance. 16.5 Your electronic assent or use of the services shall constitute execution of the Agreement. You agree that the electronic text of the Agreement constitutes a “writing” and your assent to the terms and conditions hereof constitutes a “signing” for all purposes. 16.6 If any part of the Agreement shall be invalid or unenforceable, such invalidity or unenforceability shall not affect the validity or enforceability of any other part or provision of the Agreement which shall remain in full force and effect. If any provision or part-provision of the Agreement is or becomes invalid, illegal or unenforceable, it shall be deemed modified to the minimum extent necessary to make it valid, legal and enforceable. If such modification is not possible, the relevant provision or part-provision shall be deemed deleted. Any modification to or deletion of a provision or part-provision under this paragraph shall not affect the validity and enforceability of the rest of the Agreement. 16.7 Lexer reserves the right, at its sole discretion, to change, add or remove portions of these Agreement, at any time. Such notification will be made via the Website and it is your responsibility to review the amended Agreement. Your continued use of the Website following the posting of changes will mean that you accept and agree to the changes and you agree that all subsequent transactions by you will be subject to these Agreement. 16.8 The Agreement shall be governed by the laws of the British Virgin Islands as to all matters including validity, construction, effect, performance and remedies without giving effect to the principles of choice of law thereof.

# Getting started ## Connecting your wallet Before starting your trading journey on Lexer, you can connect your wallet through the "connect wallet" on the top right corner of the trade page:

Press here to connect wallet

After selecting and connecting your wallet, please ensure you are on the Arbitrum network. There may be a pop up that will redirect you to Arbitrum if necessary.

If you're participating in the Paper Trading Competition, you will need to connect to Testnet

## Sending funds to Arbitrum You will need to have funds in your Arbitrum account to start trading. The easiest way to get funds on the Arbitrum network is to use a centralized exchange that is integrated with Arbitrum, eg Binance or Bybit. Alternatively you can send ETH from another chain to Arbitrum through a decentralized bridge. The token bridging can vary from 1 minute to 1 hour, depending on the network traffic. Here are some options below you can choose: * Multichain * Stargate * Synapse ## Opening trades Before opening a trade, start by selecting the market and the trading pair for which you want to begin trading. Click on "Long" (Buy) or "Short" (Sell) depending on which side of the leveraged trade you are taking. After selecting your side, you can enter the desired collateral and adjust the leverage using the leverage slider shown below.
After setting the parameters, simply click on "Open Position" and confirm the transaction on your connected wallet. ## Closing trades
On the same asset trading page, you can see your trade details under the My Positions list. If you wish to close your position, you can click on the Close action on the right side. Stop losses and take profit mechanisms will be introduced in Lexer v2 and traders will be able to modify these in this same action. # Asset Classes ## Cryptocurrencies LEXER currently offers 3 cryptos at leverage ranges from 2x to 50x: * BTC * ETH * ARB #### Market Times Crypto markets are open 24/7, which means you can trade whenever you want. However, when the stock market is closed, there is generally less volume on cryptos, and therefore less volatility. ## Forex LEXER v2 will offer 6 forex pairs at leverage ranges of 2x to 100x: * EUR * GBP * AUD * CHN * JPY * CAD #### Market Times Unlike crypto markets, forex markets are not always open. Times are referenced in ET (New York time). | Day of the week | Market Open / Close | | ------------------ | ------------------- | | Monday to Thursday | Open all day | | Friday | Closed from 5pm ET | | Saturday | Closed all day | | Sunday | Open from 5pm ET | Forex Markets are also closed during bank holidays. # Fee Structure Details for Lexer V2 Fees Each liquidity engine has its own fee structure and LEXER's [Smart Router](/innovations-and-mechanism/smart-router) will automatically route trades to the proper liquidity. The table below provides an overview of the fees on our platform:
Fee TypeMulti-Asset LPsSynthetic (Forex)
Swap0.01%-0.8%N/A
Open / Close Position0.1% of position size0.1% of position size
Execution (Market)Fixed at 0.001 ETHFixed at 0.001 ETH
Execution (Limit)Fixed at 0.001 ETHFixed at 0.001 ETH
BorrowUtilization based
(see formula below)		Utilization based
(see formula below)
FundingOI based (see formula below)OI based (see formula below)
DynamicBorrow Fee +/- Funding Fee (see formula below)Borrow Fee +/- Funding Fee (see formula below)
Liquidation5 USD5 USD
Bid-Ask SpreadN/A0.0001%
### Swap Fees LEXER charges a base fee of 0.01% whenever users swap assets. The fee increases accordingly based on the asset availability and target weight in the pool. This mechanism is designed to maintain a healthy asset weight in the pool. Swap fees are only applicable to the multi-asset liquidity pool. ### Open and Close Position Fees LEXER charges position fees when traders open and close positions. The position fee is at 0.1% of the position and is calculated as follows: * Open Fee: 0.1% x Asset Price x Position Size * Close Fee: 0.1% x Asset Price x Position Size ### Execution Fees There are two transactions involved in opening / closing / editing a position: 1. User sends the first transaction to request open / close / deposit collateral / withdraw collateral. 2. Keepers observe the blockchain for these requests then executes them. The cost of the second transaction is displayed in the confirmation box as the execution fee. This network cost is paid to the blockchain network. ### Borrow Fees Once traders borrow pooled assets for their positions, LEXER will charge a borrow fee that is collected hourly. The borrow fees for long and short positions are calculated separately on LEXER's multi-asset pool. Specifically, the borrow fee for long positions applies to volatile assets, while the borrow fee for short positions pertains to stable assets. In the case of the Synthetic pool, both long and short positions are subject to the borrow fee for single stable assets. $$ Utilization =\frac{(Borrowed\ amount)}{(Total\ asset\ amount\ in\ pool)} \newline BorrowRate = Max(Utilization \* maxBorrowRate, minBorrowRate) $$
AssetminBorrowRatemaxBorrowRate
USDC0.005%0.025%
USDT0.005%0.025%
BTC0.008%0.04%
ETH0.008%0.04%
ARB0.01%0.05%
### Funding Fees The Funding Fee adds value to the position on the less heavily utilized side (e.g. if most people are long - the trader will get paid for maintaining a short position) - and conversely, this will cost the position more on the more heavily utilized side (e.g. going long when most users are already long). It will naturally change based on other traders opening and closing positions. It may change from negative to positive and vice versa during the life of a trade. This means that if you take the less popular side, your liquidation price will gradually move farther away (that is, it will become harder to liquidate) and your position will be worth more, and the opposite if you trade on the more popular side. Specifically, on the Lexer trading UI: * A green value means you earn fees from the position * A red value means the position costs you fees. $$ skewScale = lpTvl \* maxLeverage\*multipler\_{token}\ OIDiff = ABS(longOI - shortOI)\ fundingRate\_{daily} = OIDiff \* maxFundingVelocity\_{token}/skewScale) $$
assetsmultiplermaxFundingVelocityFunding APR (example: at 20% skew)
BTC50926.28%
ETH40932.85%
ARB1536350.40%
EUR10011.46%
GBP12511.17%
AUD15010.97%
CNY10011.46%
JPY10011.46%
CAD10011.4
### Dynamic Fees The dynamic fee are a combination of the funding fee and the borrow fee. If the funding fee exceeds the borrow fee, the dynamic fee will be reduced to 0%. This means that users can maintain their positions without incurring any fees (free leverage trading!). IF LongOI > ShortOI
IF LongOI < ShortOI
### Liquidation Fees Accumulating borrowing fees can gradually narrow the trade liquidation prices. When the remaining asset (collateral - losses - borrow fee) in your position falls below 1% of its size, the keeper will initiate liquidation. A liquidation fee of 5 USD value will be charged by the keeper. After liquidation, any remaining collateral will be returned to the traders. # Liquidity Provision Liquidity provision plays a vital role in the Lexer ecosystem since it sets the cap of the total open interest and acts as the counterparty to traders. In return, these **liquidity providers are rewarded with 70% of the trading fee in addition to any potential trader losses.** As Lexer has its unique [Hybrid Liquidity Engine](/innovations-and-mechanism/hybrid-liquidity-engine), LPs can choose which engine to provide the liquidity to through the [Smart Router](/innovations-and-mechanism/smart-router). For the multi-asset LP engines (CoreCrypto & Arbi), liquidity provision is similar to a blue-chip crypto index with a share of the trading fees and exposure to trader PnL. For the Synthetic LP engine, there is no volatile asset risk as it utilizes stables only, and it also receives a share of the trading fees and exposure to trader PnL. **Fee revenue and exposure to trader PnL are "engine dependent", so providing for one engine will isolate the risk and rewards to the trading from that particular engine.** # Smart Router Our Smart Router is unique from other perpetual dexes as it allows trader to route their trades through a variety of liquidity engines to serve different purposes. Essentially, the Smart Router will make it easier to execute traders' positions while providing them with the best possible prices and more control over their trading experience. Trades for assets such as BTC, ETH, or other major coins will be run through the **Multi-Asset Liquidity Engine** and for other markets such as Forex, indexes, or stocks, traders will be routed through the **Synthetic Liquidity Engine.** This Smart Router system allows Lexer to expands the market variety while also keeping the option of offering real yield with a 'crypto index product'.

The Lexer Smart Router

# Hybrid Liquidity Engine Both our **Multi-Asset Liquidity** and **Synthetic Liquidity** engines are Peer-to-Pool models, which allow traders to take positions on/against the market while the pool serves as the counterparty. This means that all liquidity providers share in the PnL and fees accumulated from traders. When the open interest exceeds the value locked for the engine, traders will not be able to open new positions. ## Multi-Asset Liquidity Engine This model uses tokens as collateral. Tokens can only be used to open long positions on their respective tokens (e.g., BTC tokens can only be used to long BTC positions). USD stables can only be used to open short positions. Any other collateral used to open a position will be automatically swapped to the respective trading token, e.g., opening a 50x Long on ETH with $1000 USDC will first swap the collateral into $1000 equivalent of ETH and then open up the position. Whenever users take a long position on a market, the equivalent amount of tokens to the position size is reserved from the liquidity pool to be paid back to the trader when the position is closed, e.g., when opening a 10 ETH long, 10 ETH from the vault will be reserved and marked as "utilized". So, if the trader closes the position in profit, the profit will be paid towards the trader from the utilized ETH and the rest will go back to the liquidity pool. Conversely, when users take a short position on a market, the equivalent amount of USDC will be reserved from the liquidity pool and marked as "utilized" before the position is closed. ## Synthetic Liquidity Engine The Synthetic Liquidity Engine utilizes USDC stablecoin as the sole collateral for all trading positions, regardless of the underlying market. This approach eliminates the restriction of liquidity providers to specific markets, enhancing capital efficiency and opening up a broader range of trading opportunities. Unlike other models that may not accommodate all coins in a "crypto index product," the Synthetic Liquidity Engine supports a wider array of assets. However, due to its reliance on USDC stablecoin as collateral, it does not support swapping functionalities. ## Lending Liquidity Engine The Lending Liquidity Engine is a pool that holds both token assets and USDC stablecoins. Traders can create lending pools for a specific trading pair by depositing both the token asset and USDC stablecoins. If a trader wants to take a long position, they would need to borrow USDC stablecoins from the relevant lending pool. They would then use these stablecoins to swap into the specific token asset using liquidity from a decentralized exchange (DEX), such as 1inch or Uniswap. Conversely, if a trader wants to take a short position, they would need to borrow the token asset from the lending pool. They would then swap this token asset back into USDC stablecoins. In this way, liquidity providers for the Lending Liquidity Engine are not exposed to the risk of traders' profits and losses (PnL). # Price Oracle ## Lexer v1 Currently, Lexer utilizes an on-demand Decentralized Oracle Network (DON) from Chainlink to gather spot pricing data from prominent exchanges. It calculates the median value, removes outliers, combines the data into a single reliable price feed, and submits it to the blockchain for transaction execution. Additionally, a keeper mechanism ensures the price feed's stability and reliability. The keeper node continuously compares the DON price feed to the Chainlink oracle price. If the price data for a trading pair deviates from the Chainlink price by more than a specified threshold, the keeper submits both prices to the blockchain, and both are used for transaction execution. For instance, with ETH/USD, the deviation threshold would be 0.05%. If the DON price is $1000 and the Chainlink price is $1010, both prices are sent to the blockchain. When opening a long position, the higher price is used, while the lower price is used when closing. For short positions, the lower price is used when opening, and the higher price is used when closing. ## Lexer v2 The Lexer v2 oracle system will be powered by the Pyth Network. This oracle provides Lexer traders with real-time price information, lower trading costs, and enhanced price data integrity, leading to a more efficient and profitable trading experience. **Benefits of Pyth Network Oracles:** * **Low-to-zero latency:** Pyth Network uses a pull model to update prices, which means that prices are updated on-chain as soon as they are available on Pythnet. This results in nearly zero latency, which is critical for Lexer security. * **Improved accuracy:** Pyth Network aggregates price feeds from over 90 trusted parties, ensuring that prices are accurate and reliable. * **Decentralized control:** Pyth Network is a decentralized oracle system, which means that it is not controlled by any single entity. This reduces the risk of price manipulation. * **Lower maintenance costs:** Pyth Network's pull model is more gas-efficient than traditional push models, which results in lower maintenance costs for Lexer's users. * **More price feeds:** Pyth Network supports thousands of price feeds, which will allow Lexer to offer a wider range of markets to our traders. # Risk Control LEXER aims to reduce risk as much as possible in order to protect liquidity provider's fund and to provide a safe and fair protocol for traders to swap and trade perpetual future contracts. ## Oracle Updates: Frontrunning Risks **Risk**: By knowing the next Oracle price, bots could potentially harm the liquidity pool if they frontrun the price update transaction with that knowledge. **Control**: Continuous on-chain Oracle price update is necessary to maintain the swap and perpetual service on LEXER. Though we are not able to prevent bots from knowing the price on the next Oracle update, one effective way of risk control is to disconnect the order request and order execution. **Implementation**: LEXER handles traders' order requests and order executions in two separate transactions. ## Price Manipulation **Risk**: Manipulators could potentially take deterministic profit by making future contract trades by manipulating the oracle price and draining the liquidity pool. **Control**: Multiple past exploits indicate that simply getting Chainlink price feeds may not reflect the actual market condition and that the majority of manipulation takes advantage on thin depth of liquidity to move the market and execute an exploit. **Implementation**: After considerable research, our oracle price takes orderbook depth from different centralized exchanges, such as Binance, OKX and Bybit into consideration. Lexer also has standards in picking markets with rich liquidity depth or high market cap to further decrease the chance of manipulation risk. # Liquidation Lexer implements an execution bot that focuses on executing all limit orders and liquidations. This bot monitors the system and executes these limit orders and liquidations as soon as the price hits it target. All limit orders have an extra 0.02% fee so that they will be executed exactly where they are set, no matter the execution speed or market volatility. All extra fees will be rewarded to the executor to incentivize them to act as quickly as possible. There are 3 bots currently run by the Lexer team and eventually we are planning to allow non-team bots through whitelisting in hopes to further decentralize the protocol. # Guaranteed Execution ## Precise execution on opening & closing positions Sometimes the market can move a few percentages in seconds due to volatility. In other typical perpetual dexes, when stop losses are hit in these volatile conditions, traders might suffer extra losses due to the time needed to execute the trade. And during this time, the price might continue to drop further before the trade is executed. Additionally, by the nature of oracle-based trading platforms, trades might not be executed if the price moves in and out of the limit order too quickly before they are executed. Lexer tackles this problem with help from our innovative oracle structure. When prices hit the limit order, **we can guarantee to execute the trade at the exact price the trader sets**, no matter how long it takes to execute the trade on chain. # Tokenomics ## LEX Token * Name: Lexer Token * Ticker: LEX * Chain: Arbitrum * Max supply: 1,000,000,000 LEX * Contract: ### Distribution
CategorySupplyDetails
Early Contributor 2.00%This allocation will be distributed to the very early contributors.
Team18.00%Vested linearly over 24 months
Private Investor12.45%Reserved for Lexer private round (at 10M FDV) investors.

10% initially unlocked, vested linearly over 18 months
Es Vesting Reward40.00%Reserved for esLEX staking rewards.

Limited to 40% (400M) in total, and 10% max yearly.
Protocol Owned Liquidity2.55%

2.5% (25M) of Protocol Owned Liquidity will be paired with 50% of funds raised in the public sale as DEX liquidity on Camelot.

0.05% (0.5M) of Protocol Owned Liquidity will be reserved in a multi-sig wallet.

Community Incentive10.00%Reserved for community campaign rewards including liquidity bootstrapping, partnerships, and co-marketing efforts with partners.

Limited to 10% (100M) max yearly emissions
Public Sale5.00%IDO will be hosted on Camelot Launchpad, with 50% instantly distributed in LEX tokens and 50% in idoLEX tokens which can be vested linearly over 12 months.
Treasury10.00%Reserved for emergency use, locked in a multi-sig wallet
### Emission Schedule
## Escrowed LEX esLEX is distributed to staking pool participants. esLEX is non-liquid, non-transferrable LEX that can be used in two ways: 1. Staked to receive the same rewards as a regular LEX token (fees, esLEX) 2. Vested for 12 months to become liquid LEX tokens ### **Staking** esLEX has the effect of giving higher returns to long-term stakers, who can be seen as Lexer's committed users that are also qualified to make major decisions regarding the protocol's future. **The longer and the more you stake, the larger share of fees you take**. The value of esLEX comes from these accumulating rewards over time. This aligns the interests of Lexer Markets and our token holders for long-term growth. [Read more here](/token-and-economics/staking) ### **Vesting** Non-staked esLEX tokens can be vested to be redeemed as LEX. When you initiate vesting, your esLEX will be linearly converted into LEX every second and will fully vest at the end of 12 months. Vesting requires "reserving", or locking, LEX into the vesting vault. The amount required for vesting is equivalent to the amount of staked LEX you used to acquire the esLEX. Both LEX tokens and LP tokens can be used for the required amount. > For example, if you staked 1000 LEX and earned 100 esLEX tokens, then to vest 100 esLEX tokens, 1000 LEX tokens will need to be reserved. To vest 50 esLEX, 500 LEX tokens (or equivalent LP tokens) will be reserved. Note that this is an example and the actual ratio depends on the average staked amount and rewards earned for your account. **Staked LEX and LP tokens that are reserved in the vesting vault will continue to earn rewards**. **However, please note that you will *****not***** be able to unstake the tokens while they are reserved.** # Economic Flow Cash flow for Lexer **LEX** is both a utility and governance token. Currently, holders can participate in staking to receive 30% of the fees generated by the protocol in ETH. In the future, when the protocol reaches a significant level of maturity, LEX will be used for decentralized governance. ### Economic flow for Lexer For an easier understanding on how the money flows in Lexer and how each party benefits: * Traders can deposit and trade freely in various markets using the [different liquidity engines](/innovations-and-mechanism/hybrid-liquidity-engine) as directed by the Lexer [Smart Router](/innovations-and-mechanism/smart-router). * [Liquidity providers](/trading/liquidity-provision) can choose which liquidity engine to provide for, keeping in mind that depending on their choice they will receive a different type of yield. * 30% of the **total** trading fees goes to the staked LEX token holders (+ esLEX token holders). * 70% of the total trading fees goes to liquidity providers in addition to profits from trader losses in the native tokens.
# Staking ## Staking LEX Staking V1 is now live at . ### Overview * Users can stake $LEX to receive [fees](/trading/fee-structure) from all of the [Hybrid Liquidity Engine](/innovations-and-mechanism/hybrid-liquidity-engine) markets. * Users can accumulate Multiplier Points for boosting their yields over time. * No locking or inflation from $LEX. ### Staked LEX receives three types of rewards: * $esLEX * ETH Rewards * Multiplier Points A quick overview of each token's properties:
* $LEX can be staked to earn protocol fees in ETH, $esLEX, and Multiplier points. * $esLEX can be staked to earn protocol fees in ETH, $esLEX, and Multiplier points, but it's non-transferable (non-tradable). * Multiplier points can multiply your protocol fee in ETH and **they are burnt upon unstaking $LEX or $esLEX.** ### LEX Staking V1 Mechanism
By staking LEX as soon as possible, users will be rewarded with the maximum amount of esLEX, and multiplier points. Keep in mind that both esLEX and the multiplier points can then be staked for additional fee rewards. An example of the benefits of early LEX staking: 💛Alice stakes $LEX with the multiplier points compounding because she's a smart cookie and she wants to maximize her rewards (yellow line). \ 🔴 Bob stakes $LEX, but he doesn't compound any multiplier points because he's busy doing something less important (red line). \ 🔵 Cathy just holds $LEX because she's a forgetful speculator (blue line). Alice is now enjoying 2.4x of the yield sharing! 💛 ### esLEX Escrowed LEX (esLEX) can be used in two ways: 1. Staking for rewards similar to regular $LEX tokens. 2. Vested to become actual $LEX tokens over a period of one year. Each staked $esLEX will earn the same amount of protocol fees in ETH and esLEX rewards as a regular $LEX. Please note that esLEX is not transferable or sellable and must be vested to LEX for such actions. ### Vesting of esLEX esLEX tokens can be converted into LEX tokens through a vesting process, which can be accessed on the Earn page. When vesting is initiated, a corresponding amount of LEX or XLP tokens will be reserved.
For instance, if you staked 1000 LEX tokens and earned 1000 esLEX tokens, then to vest 1000 esLEX tokens, 1000 LEX tokens will be reserved. Similarly, to vest 500 esLEX tokens, 500 LEX tokens will be reserved. The ratio for LEX reserve required to vest esLEX is 1:1. esLEX tokens that have been unstaked and deposited for vesting will not earn any rewards. However, staked tokens that are reserved for vesting will continue to earn rewards. Upon initiating vesting, the esLEX tokens will be converted into LEX tokens every second and will fully vest over 365 days. Once converted into LEX tokens, they can be claimed at any time. If a user sells LEX or XLP tokens but wishes to vest their esLEX rewards later, they will need to repurchase the LEX or XLP tokens. For the required reserve amount, LEX, esLEX, and Multiplier Points can be used interchangeably. Depositing into the vesting vault while existing vesting is ongoing is possible. Tokens that are reserved for vesting cannot be unstaked or sold. To unreserve the tokens, use the "Withdraw" button on the "Earn" page. Partial withdrawals are not supported. Withdrawing will withdraw and unreserve all tokens, as well as pause vesting. Any esLEX tokens that had already been vested into LEX tokens will remain as LEX tokens. ### Multiplier Points Multiplier Points reward long term holders without inflation. When you stake LEX, you receive Multiplier Points every second at a fixed rate of 100% APR. 1000 $LEX staked for one year would earn 1000 Multiplier Points. Multiplier points can be staked for fee rewards by pressing the "Compound" button on the "Earn" page, each multiplier point will boost ETH at the same rate as regular LEX token. When LEX or esLEX are unstaked, the proportional amount of Multiplier Points are burnt. For example, if 1000 $LEX is staked and 500 Multiplier Points have been earned so far, then unstaking 300 $LEX would burn 150 (300/1000\*500) Multiplier Points. The burn will apply to the total amount of Multiplier Points which includes both staked and unstaked Multiplier Points. The "Boost Percentage" shown on the "Earn" page shows your individual boost amount from Multiplier Points. For example, if the ETH APR is 10% and you have $10,000 worth of LEX and esLEX, then your rewards would be $1000 annualized, if you additionally have an amount of Multiplier Points equivalent to 20% of your total amount of LEX and Escrowed LEX, your "Boost Percentage" would display as 20%, and you would get an extra $200 of ETH rewards annualized. The “Boost Percentage” is calculated from the ratio of Multiplier Points to your total amount of staked LEX: Boost Percentage = 100 \* (Staked Multiplier Points) / (Staked LEX + Staked esLEX) An example: 100 \* (4.5656) / (7.54 + 2.00) = 47.85% # Referooor Program Invite your frens and followers to LEXER and earn an unlimited $ETH rebates. The more your frens trade on LEXER, the more rewards you can earn 🎁 ## Overview | Tier | You can earn | Traders' Discount | | --------- | ------------ | ----------------- | | Tier 1 | 5% Rebates | 5% Discount | | Tier 2 OG | 10% Rebates | 5% Discount | Any user of a referral code will enjoy a 5% discount on the trading fee. ## How it works ### 1. Join the Referoor Program [Navigate to the Referral page on Lexer.Markets](https://app.lexer.markets/referrals) and follow the instructions. ### 2. Invite your frens to use LEXER Share your unique referral link through your social channels. You can use our Affiliates Resource Center for promotional best practices, guides, videos, and more. ### 3. Earn your unlimited rewards! For every trade from your frens, you’ll earn at least 5% of trading rebate - no limits! ## See how much you could earn Sarah invites three frens, John, Emma, and Michael. The one-week trading volume for each fren was: * John: $30,000 * Emma: $4,000,000 * Michael: $500,000 Since Sarah referred 3 frens with her referral code, as a Tier 1 member, she is eligible for a 5% rebate from her frens' Lexer trading fees. To calculate her rebate, we multiply the total trading volume of her referred frens ($10,000 + $2,000,000 + $300,000) by the trading fee discount of 5%. Then, we apply the 5% rebate, resulting in a total rebate of $135.9 worth of ETH for Sarah.

\