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Perpetual Trading

GMX enables leveraged perpetual trading on Arbitrum and Avalanche with up to 50x leverage. Positions are automatically priced via a TWAP mark system, with funding rates equilibrating long/short imbalance. GLP holders are always the counterparty.

Position PnL Mechanics

Long/short Mark vs Index Funding Liquidation

PnL Calculator

Configure your position. Watch how leverage multiplies both gains and losses, and when liquidation occurs.

Position Size
$10,000
Price Move
+5.0%
Unleveraged PnL
$500
Leveraged PnL
$5,000
Funding Cost/8h
$0
Net PnL
$5,000
ROE (Return on Equity)
+500%
Liquidation Price
$54,545
Profit

Mark vs Index Price System

Index Price
The true spot price - weighted average across Coinbase, Binance, Kraken, and other major exchanges. Updated in real-time.
Used for: Reference benchmark, funding rate calculations
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Mark Price (TWAP)
GMX's internal price for PnL and liquidation. A Time-Weighted Average Price over the last 10 minutes, preventing single-block manipulation.
Used for: Position PnL, liquidation triggers, leverage calculation
The spread between mark and index widens when price moves sharply, protecting against oracle front-running attacks. GMX uses Chainlink as the primary oracle with redundant aggregators.

Funding Rate Mechanics

Funding payments occur every 8 hours. Positive funding means longs pay shorts; negative means shorts pay longs. The rate adjusts based on open interest imbalance.

T+0h
$0
T+8h
$0
T+16h
$0
T+24h
$0
Funding Payment Calculation
Funding Payment = Position Size (Funding Rate / 8) (Hours Held / 8)
Example: 10x leverage long, $10,000 size, +2% funding rate, held 24h -> $10,000 0.02 3 = $600 funding paid

Liquidation Trigger System

1
Position Opened

You deposit $1,000 margin and open a 10x long position worth $10,000. Liquidation threshold: position collateral ratio < 10%.

Entry: $60,000 Size: $10,000 Margin: $1,000
2
Price Moves Against You

ETH drops from $60,000 to $55,000. Your unrealized loss is: $10,000 ($60k-$55k)/$60k = $833. Remaining margin: $167.

Mark: $55,000 Loss: $833 Remaining: $167 (16.7% of position)
3
Liquidation Trigger

Remaining margin ($167) = 16.7% of position value. This is above the 10% threshold - position is safe but getting close.

Margin Ratio: 16.7% > 10% threshold - not yet liquidated
4
Full Liquidation

If ETH drops to ~$54,545 (10% below entry at 10x), margin ratio hits 10% exactly. Any trader can call executeLiquidation() and earn a 5% bonus.

? Liquidated at ~$54,545 Liquidator earns ~$83 bonus
Liquidation Bonus Structure
95% -> Redistributed to GLP holders (covers losses)
5% -> Liquidator bot reward

Position Lifecycle

Open Position
Deposit collateral, select long/short, set leverage. Position opens at current mark price. Trading fee (0.1%) charged immediately.
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Hold (Accrue PnL)
PnL updates every 10-minute mark price tick. Funding payments applied every 8 hours. You can add/remove margin.
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Close Position
Submit close order at current mark. Trading fee (0.1%) charged. Net PnL = leveraged gain/loss - funding costs +/- fees.
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Settle
If profit: protocol pays from borrowing pool (GLP holders' loss). If loss: protocol gains, GLP holders profit by portion of loss.

GLP Pool: The Counterparty

GLP Token
GMX Liquidity Provider Token
Current APY
~25%
Total TVL
~$400M
7d Volume
~$2.8B
Utilization
~85%
Multi-asset pool: ETH, BTC, USDC, USDT, etc.
70% of trader losses -> GLP holders as protocol revenue
Earn 70% of funding payments when you hold opposing position to traders
? GLP Risks
Impermanent Loss from crypto price movements
Net negative positions: if traders collectively profit more than funding, GLP holders lose
Multi-asset exposure: GLP holds various tokens, not just stablecoins