#FAQ

Answers to commonly asked questions about Exolane.

#General Questions

#What is Exolane?

Exolane is a non-custodial leveraged trading protocol on Arbitrum One. It supports perpetual futures with up to 10x leverage (BTC/ETH) or 5x (other markets) using USDC as collateral. Positions, margins, and settlements are enforced by audited smart contracts. Trading involves significant risk of loss — see the Risk Disclosure.

#Why is it called "non-custodial"?

Non-custodial means Exolane never takes custody of your funds. Your collateral is held in smart contracts — no admin function exists that can transfer user collateral out. Note: the multisig can pause protocol operations (including withdrawals) in emergencies, and contracts are upgradeable through governance.

#What network does Exolane run on?

Exolane runs exclusively on Arbitrum One, a Layer 2 scaling solution for Ethereum. This provides low fees (~$0.01) and fast confirmations while inheriting Ethereum's security.

#What markets can I trade?

Exolane offers 10 live perpetual markets:

  • BTC/USD
  • ETH/USD
  • SOL/USD
  • BNB/USD
  • XRP/USD
  • DOGE/USD
  • XMR/USD
  • AVAX/USD
  • LINK/USD
  • SUI/USD

#Trading Questions

#What's the maximum leverage?

  • BTC/USD and ETH/USD: Up to 10x (10% initial margin)
  • All other markets: Up to 5x (20% initial margin)

#What are the trading fees?

  • Taker fee: 0.02%
  • Maker fee: 0.00%
  • Liquidation penalty: 0.00%

#Why is funding capped at 15%?

Traditional perpetual exchanges can have funding rates spike to 100%+ during volatile markets. Exolane caps funding at ±15% APR to:

  • Keep costs predictable
  • Make long-term positions viable
  • Protect against "funding squeeze" attacks

#Does Exolane profit from funding?

No. The protocol does not take any share of funding payments. 100% of funding flows directly between traders. This is disclosed in the Fee Structure and the on-chain market parameters.

#Why didn't my order execute at the price I saw?

Exolane uses oracle-based settlement. Your order executes at the next oracle price after submission, not the displayed price. This prevents front-running and ensures fair execution.

#Why is there a delay in my order?

Orders enter a pending state and settle on the next oracle update. This typically takes 1-10 seconds. The delay protects against manipulation.

#Account Questions

#How do I deposit funds?

  1. Connect your wallet
  2. Click "Deposit"
  3. Approve USDC (first time only)
  4. Confirm the deposit

#Can I withdraw anytime?

Yes, you can withdraw free collateral (not being used as margin) at any time.

#What is 1-Click Trading?

1-Click Trading creates a session key that allows you to trade without wallet popups for each transaction. It's more convenient and the session key can only trade—it cannot withdraw funds.

#Is there a minimum deposit?

There's no strict minimum deposit, but you need enough to meet minimum margin requirements (~$10 per position).

#Why did my market margin decrease by a small amount?

Exolane automatically maintains a $0.30+ balance in your collateral account so on-chain keeper fees can be paid. If your collateral balance drops too low, the protocol pulls up to $3.00 from your safest market back to the collateral account. This ensures your trades, stop-losses, and take-profits can always execute. The transfer is bundled atomically with your trade — no extra steps needed. See Automatic Collateral Reserve for details.

#What is the collateral reserve / keeper fee?

Every action (open, close, modify margin, set SL/TP, cancel) is executed by an on-chain keeper that charges a small fee (typically $0.01–$0.05, max $0.30) from your collateral account. The protocol keeps a $2.00 minimum reserve and auto-replenishes to $3.00 when it runs low, pulling from your market with the most headroom. You don't need ETH in your wallet for keeper fees — they come from your USDC collateral.

#Risk Questions

#Can I lose more than I deposit?

Exolane is designed to be non-recourse — your maximum loss per market is intended to be limited to your deposited collateral. In rare edge cases (oracle delays, extreme volatility), the protocol may absorb bad debt rather than pass it to other users. This does not mean trading is safe; you can lose your entire deposit.

#What happens if I get liquidated?

If your margin falls below the maintenance requirement:

  1. A keeper closes your position at the current oracle price
  2. The protocol currently charges 0% liquidation fee (this is a configurable parameter, currently set to zero)
  3. Any remaining collateral stays in your account
  4. If losses exceed your collateral, the protocol absorbs the deficit — you do not owe additional funds

#Why was I liquidated even though the price recovered?

Liquidation is triggered when the price touches your liquidation price. Once a keeper initiates liquidation, it's final—later price recovery doesn't reverse it.

#How can I avoid liquidation?

  1. Use lower leverage
  2. Set stop-losses above/below your liquidation price
  3. Add margin when margin health decreases
  4. Monitor positions during volatile periods

#Technical Questions

#Where do prices come from?

Prices come from Pyth Network, a decentralized oracle that aggregates prices from 50+ data sources including major exchanges.

#What if the oracle goes down?

If the oracle becomes stale (>40 seconds old), trading pauses. No new positions can be opened, and no liquidations occur. Trading resumes when fresh prices arrive.

#Are the contracts audited?

Yes. The smart contracts have been audited multiple times by Sherlock and Zellic. Audits reduce risk but do not eliminate it — undiscovered vulnerabilities may exist. The contracts use upgradeable proxies, meaning the implementation can be changed through governance. See our Audits page for details.

#Is the code open source?

All smart contracts are verified on Arbiscan and their bytecode is publicly readable. The underlying codebase is based on Perennial V2, which has a public audit history.

#Troubleshooting

#My transaction is stuck

  • Check if you have enough ETH for gas
  • Wait a few minutes—Arbitrum may be congested
  • Try refreshing the page

#I can't open a position

Common causes:

  • Insufficient collateral in account
  • Would exceed maximum leverage
  • Market has too many pending orders
  • Oracle is stale

#My balance seems wrong

Balances update when oracle prices update. Wait a few seconds and refresh. PnL is calculated based on settlement prices, not displayed prices.

#The app won't connect to my wallet

  • Ensure you're on Arbitrum One network
  • Try disconnecting and reconnecting
  • Check if your wallet supports Arbitrum
  • Try a different browser

#Still Have Questions?

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