Markets

A Shortcap market is one isolated perpetual on one graduated Elysium token.

Creation rules

Anyone can open a market. One transaction to the registry, createMarket(token, pool), checks three things:

1. Liquidity. The spot pool holds at least the minimum HYPE liquidity: 500 HYPE (testnet: 0.005 HYPE).
2. Match. The pool prices that token against HYPE.
3. Uniqueness. The token has no market yet. One market per token.

If the checks pass, the registry deploys a market as a minimal proxy clone and emits MarketCreated. The market's vAMM starts at the current index price, with the same HYPE depth as the spot pool.

The markets page has a create market key that runs the checks before you sign.

What a market holds

• A virtual AMM: virtual token and HYPE reserves. No real tokens are held. Mark price = HYPE reserve ÷ token reserve.
• Open interest per side, capped at 20% of spot liquidity of the token's spot liquidity.
• Positions: size, margin, entry price, funding snapshot, open time, side.
• A cumulative funding index.
• An insurance fund in HYPE.

Positions are isolated per market. A loss on one token never touches margin on another.

Lifecycle

Live. The default. Positions open and close. Funding settles hourly.

Frozen. When the spot price moves more than 30% from TWAP away from the 5-minute TWAP, the market freezes. New positions cannot open and funding is skipped. Closing, adding margin and liquidation keep working. The market unfreezes on its own once spot is back within the band. See Index price.

Retired. A market whose token loses its pool, or whose pool falls below the threshold for good, is retired: no new positions, existing positions close at the vAMM price. On the testnet, retirement is a manual parameter action, and no market has been retired.