Market Contracts

The market contract utilizes PredyPool to enable gas-less orders and custom orders.

GammaTradeMarket

This contract represents the market for trading gamma-related financial instruments. It facilitates the execution of trades, auto-hedging, and closing of positions involving gamma exposure.

Squart and short ETH position PnL

executeTrade

This function processes a trader's order and executes perpetual and Squart contract trades on PredyPool. The function is called by the Filler, and the trader's signature is verified using Permit2. The method of token exchange is set by the Filler as settlementParams.

Please also refer to the activity diagram.

GammaOrder

GammaOrder is the first argument of executeTrade function.

Here is an explanation of the GammaOrder: info contains common order information. The pairId specifies the pair ID registered in Predy, while the positionId designates the vault ID or sets it to 0 to create a new one. The entryTokenAddress indicates the address of the quote token. The quantity and quantitySqrt represent the quantity for perpetual contracts. The marginAmount is the amount of margin to be deposited, with negative values indicating a withdrawal. The baseSqrtPrice is the base price used to calculate the acceptable price, and the slippageTolerance defines the allowable slippage. leverage is stored as metadata and is not used. Finally, modifyInfo contains hedge trigger information.

struct GammaOrder {
    OrderInfo info;
    uint64 pairId;
    uint256 positionId;
    address entryTokenAddress;
    int256 quantity;
    int256 quantitySqrt;
    int256 marginAmount;
    uint256 baseSqrtPrice;
    uint32 slippageTolerance;
    uint8 leverage;
    GammaModifyInfo modifyInfo;
}

Here is an explanation of the GammaModifyInfo: If isEnabled is true, subsequent updates will be enabled; if false, the following values will be ignored. The expiration represents the position's validity period. maximaDeviation is the value used to adjust the target delta when performing delta hedging. lowerLimit is the lower price limit that triggers an automatic close, and upperLimit is the upper price limit. hedgeInterval specifies the delta hedging interval in seconds. sqrtPriceTrigger indicates the price change threshold that triggers hedging. minSlippageTolerance and maxSlippageTolerance define the minimum and maximum allowable slippage, respectively. auctionPeriod is the duration of the Dutch auction, and auctionRange is a parameter for the Dutch auction relative to the price trigger.

struct GammaModifyInfo {
    bool isEnabled;
    uint64 expiration;
    int64 maximaDeviation;
    uint256 lowerLimit;
    uint256 upperLimit;
    uint32 hedgeInterval;
    uint32 sqrtPriceTrigger;
    uint32 minSlippageTolerance;
    uint32 maxSlippageTolerance;
    uint16 auctionPeriod;
    uint32 auctionRange;
}

modifyAutoHedgeAndClose

This function processes a trader's modify order to update auto close and auto hedge condition.

autoHedge

This function automatically hedges the trader's position to manage gamma risk. It adjusts the position to maintain the desired risk profile. There are time triggers and price triggers that activate this function.

autoClose

This function automatically closes trader positions whose expiration is less than or equal to the current block time. It ensures that expired positions are safely and efficiently closed.

quoteTrade

This function returns the estimate of an order as a revert message.

checkAutoHedgeAndClose

This function checks the conditions for auto-hedging and auto-closing.

PerpMarket

This contract represents the perpetual market where continuous trading of perpetual contracts occurs. It facilitates the execution of trades and management of positions without an expiration date, allowing users to hold positions indefinitely.

executeOrderV3

This function processes a trader's order and executes perpetual contract trades on the PredyPool. It calculates the initial margin based on the specified leverage and ensures the position is in a safe state. The order is validated using the permitWitnessTransferFrom function from Permit2 for signature verification. Please also refer to the activity diagram.

PerpOrderV3

PerpOrderV3 is the first argument of executeOrderV3 function.

The info contains common order information. The pairId specifies the pair ID registered in Predy. The entryTokenAddress indicates the address of the quote token. quantity represents the quantity for perpetual contracts. marginAmount is the maximum amount of margin to be deposited. limitPrice specifies the acceptable price for the trade, while stopPrice specifies the stop price that triggers the trade. leverage determines the amount of margin relative to the trade quantity, with higher values increasing the liquidation risk. If reduceOnly is true, the order can only reduce the position size. If closePosition is true, the position will be reduced to zero. auctionData contains parameters for the Dutch auction in market orders or stop orders. If both limitPrice and stopPrice are set to 0, the order is processed as a market order.

struct PerpOrderV3 {
    OrderInfo info;
    uint64 pairId;
    address entryTokenAddress;
    string side;
    uint256 quantity;
    uint256 marginAmount;
    uint256 limitPrice;
    uint256 stopPrice;
    uint8 leverage;
    bool reduceOnly;
    bool closePosition;
    bytes auctionData;
}

The required initial margin is determined as follows.

InitialMargin = (amount of perp) * price / leverage - (position value after trade)

quoteExecuteOrderV3

This function returns the estimate of an order as a revert message. It is designed to always revert.