Tradoor Liquidity Provider

The Tradoor Liquidity Provider （TLP）absorbs all losses resulting from LP risk exposure until it is depleted.

The TLP's income comes from 3 sources:

• A portion of transaction and liquidation fees (maintenance margin)

• Income from funding fees due to LP exposure

• The profits and losses of all traders

• The TLP's profit and loss rate x = TLP net value / TLP shares

TLP subscription:

• Non-leveraged subscriptions are allowed, with redemption available after locking for 10 days.

• If the TLP is not at a loss (x >= 1), the principal invested and subscription shares are 1:1.

• If the TLP is at a loss (x < 1), the loss rate is x, and the ratio of principal invested to subscription shares is 1:1, and calculate a loss subscription incentive b = b + s(1-x) * principal_invested

where s is the TLP loss subscription incentive coefficient, with a default value of 1 and is configurable.

TLP redemption:

• If the TLP is at a profit (x >= 1),

  • If b = 0, Redemption Amount = redemption_shares * (1+r(x-1)*min(n, 100)*0.1%)

  • If b > 0, Redemption Amount = redemption_shares + max{min[redemption_shares * (x - 1), b], redemption_shares * r * (x-1) * min(n, 100) * 0.1%}

b = max(0, b - max{min[redemption_shares * (x - 1), b], redemption_shares * r * (x-1) * min(n, 100) * 0.1%})

• If the TLP is at a loss (x < 1),

  • the redemption amount = redemption shares * x

  • b remains unchanged

* r is the TLP lock-in redemption incentive coefficient, with a default value of 1 and is configurable, up to a maximum of 10.