1. Connect your wallet
- Head over to the ZKX Trading Platform. The link will be live from 31st March.
- Look for the “Connect wallet” button at the page’s top right corner.
- Select your preferred wallet from the options provided (Metamask, Coinbase, or Wallet Connect).
- Connect your Metamask wallet by verifying ownership and switching to the Ethereum network.
- If you don’t have a web3 wallet, download one of the supported options or directly download Metamask -https://metamask.io/download/
2. Choose your Trading Experience Level
- Look for the Button in the top right corner with View on it.
- To gamify your experience, we are offering three different UIs tailored to different experience levels: Standard, Advanced, and Professional.
- Standard View is for beginner-level traders and shows the chart and order book.
- Advanced View is tailored for intermediate to advanced-level traders and allows Traders to view the order book and their Trades on the left side of the screen. This feature enables traders to make informed decisions based on data-driven insights.
- Professional View is for well-versed traders focused on the market, and traders can view an enlarged chart with options to explore and analyze dips.
When you create a Testnet account using your Ethereum L1 wallet, a ZKX account on L2 will be automatically generated.
- The ZKX account will hold your funds, positions, orders, and trades, making account management more convenient.
- You can control your account directly from either L1 or L2.
- Every new account created in the system will have a starting balance of 10,000 USDC.
- The deposit function is currently not operational.
- The order panel on the right-hand side offers 6 different order types: Market, Limit, Stop Limit, Stop the Market, Take Profit Limit, and Take Profit Market.
- The initial markets are BTC and ETH, but other digital assets can be added through the data provider system.
- Each market allows for simultaneous long and short positions.
- Advanced options can be expanded to use Time in Force policies.
- Also, there is a leverage slide which is determined by risk management and margin, with a maximum of 20x.
4. Review your Positions, Orders, Fills, and Payments
At the bottom, you can view your positions, orders, fills, and payment overview. Clicking on the Position tab displays your account balances, margin requirement, PnL, leverage, and volume figures.
- The “Positions” tab displays your current holdings on ZKX. There are two types of positions: long and short.
- Long positions involve owning a security or contract and profit when the price increases but losing when it decreases.
- Short positions, on the other hand, profit when the security price falls. Short positions often involve borrowing and selling securities, with the aim of buying them back at a lower price.
Orders represent all trades the user makes for a particular market/asset.
There are 5 order states:
- Partially filled
- A fill results from an order execution to buy or sell securities in the market.
- A fill will report the price(s), timestamps, and volume of an order sent to the market via a broker or automated trading system.
- Partial fills are orders that have yet to be fully executed due to conditions placed on the order, such as a limit price.
- Payments refer to funding fees exchanged between long and short position holders on the platform.
- Fees are settled every 8 hours and calculated based on position value and funding rate at settlement time.
- Positive funding rates result in long-position holders paying short position holders.
- Negative funding rates result in short position holders paying long position holders.
- Payment history can be viewed in the payment overview section of the platform.
Details of the Price, Order book, Funding Rate, and Market
Price or the Trading view chart shows real-time price charts with technical indicators, cross-platform alerts, and a social network.
The chart has tools to plot indicators, switch chart types, and configure settings like symbols, scales, and appearances.
Various tools offered in the trading view are:
- The toolset on the left side of the chart allows users to add technical indicators like trend lines and Fibonacci ratios, as well as markers like icons and highlighters.
- The top toolbar lets users switch chart types, like candles or lines, and add overlays.
- The chart can be configured by right-clicking and selecting settings, including symbols, scales, appearances, trading, and events, among other options.
An order book is a digital list of buy and sell orders for security, organized by price level. It usually has three sections: purchase orders, sell orders, and order history/trades.
- Buy orders show bids and the amount buyers want to purchase.
- Sell orders show offers and the prices sellers want to sell at.
- Market order histories/Trades show all the transactions that have taken place in the past.
- Funding rates are payments to long or short traders based on the difference between contract and spot prices.
- Payments are made based on open positions.
- ZKX Futures has a fixed daily interest rate, with the premium varying based on the price difference between the contract and the mark price.
- During high volatility periods, the perpetual contract price may diverge from the mark price, causing the premium to increase or decrease.
- A positive funding rate means long traders pay short traders when the perpetual contract is priced higher than the mark price.
- A negative funding rate means short traders pay long traders when the perpetual contract is priced lower than the mark price.
- The funding Rate is not available in Testnet v1 but will be added later as the Testnet evolves.
Click on the “Details” tab on the top part of the trade page, and you will be able to see key details about a market.
Let’s take a look at each field:
- Tick size is the Minimum price change allowed in a market
- Step size is the Smallest amount by which an order can be increased or decreased
- Minimum order size is the Smallest amount of an asset that can be traded on the market; reduced due to the transition to Layer 2 and varies by asset
In each market, there are two risk parameters: Initial margin fraction and Maintenance margin fraction. They decide the highest leverage allowed in that market. These parameters determine the minimum value that an account must hold to open or increase positions (initial margin) or prevent liquidation (in case of maintenance margin)
- Maximum leverage is the Highest leverage allowed in a market.
- Initial Margin Fraction is the Margin needed to open a position, calculated as position amount divided by equity; exceeding it prohibits increasing position.
- Maintenance Margin Fraction is the Margin needed to avoid liquidation; exceeding it leads to the automatic closure of position (liquidated) and a liquidation fee.
ZKX is the first perpetual futures exchange on StarkNet with self-custody and true community governance. The protocol is designed to provide further scalability with a decentralized node network, and an elevated trading experience, and offer perpetual swaps and derivatives to any user on Starknet and Ethereum. ZKX’s mission is to democratize access to global yields through its offerings to anyone, anywhere.
In July, ZKX raised $4.5m in seed funding from backers including StarkWare, Amber Group, Huobi, Crypto.com, and others.