Chapter 3: Vault Opening

Acceleration Program

Our LP token, LP3 facilitates liquidity provisioning for traders, enabling leveraged positions. Profit and loss dynamics are contingent upon traders' performance: losses benefit LP3 holders, while trader profits may lead to losses for LP3 holders.

Holding LP3 entails risks, while enjoying the significant potential for upside. By staking LP3, users can earn up to 80% of platform fees generated for bearing these risks:

1. Smart Contract Risk: L3X Exchange's smart contracts are audited, yet inherent risks persist.

2. Counterparty Risk: Profits earned by traders are sourced from the LP3 pool.

3. LRT Risk: LP3 is directly impacted in the unlikely event of ezETH or other LRT partner exploits, depegging events, and other issues impacting the vault asset types.

The perpetual platform's open interest is constrained by total collateral reserves of LP3. New positions are restricted if platform open interest exceeds total TVL in LP3. Read more about out risk mitigation strategy here.