ZDEX Perpetuals

Document Version: 2.0
Last Updated: January 2026
Smart Contract Version: Solidity ^0.8.24
MiCA-Aligned Disclosure

Abstract

ZDEX is a decentralised perpetual futures exchange designed to combine the performance and liquidity characteristics of centralised exchanges with the transparency and self-custody of decentralised systems.

ZDEX utilises a Central Limit Order Book (CLOB) architecture rather than an automated market maker (AMM), enabling precise price discovery and advanced execution mechanics.

Disclaimer: Trading perpetual futures involves significant risk. This document is for informational purposes only. ZDEX does not provide investment advice, guarantees, or custodial services.

1. Overview

ZDEX Trading Interface

1.1 Market Structure

ZDEX supports perpetual futures contracts, which allow users to gain long or short exposure to an underlying asset without an expiration date.

Core characteristics include:

Feature	Description
Continuous Trading	24/7 market availability
Margin-Based Trading	Collateralised position management
Stable-Asset Settlement	USDC settlement
Configurable Leverage	Up to 100x leverage
Funding Rate Anchoring	Price alignment mechanism

1.2 Central Limit Order Book (CLOB)

The CLOB architecture allows participants to submit bids and asks at explicit prices.

Advantages over AMMs:

Advantage	Description
Reduced Slippage	Better execution for large orders
Tighter Spreads	More efficient price discovery
Capital Efficiency	Improved utilisation of liquidity
Transparent Depth	Visible market depth
Professional Suitability	Better for advanced trading strategies

2. Technical Architecture

2.1 Infrastructure Layer: Orderly Network

ZDEX is built as a front-end interface to the Orderly Network liquidity layer.

Users
  |
  v
Frontend (Web Interface)
  |
  v
ZDEX Interface (zdex.world)
  |
  v
Orderly Network
  +- Unified CLOB
  +- less than 20ms Latency
  +- Cross-chain Liquidity
  |
  v
Zircuit L2
  +- ZK Settlement
  +- EVM Compatible
  +- AI Security
  |
  v
Ethereum Mainnet (Final Settlement)

Component	Capability
Unified Liquidity	Orders matched against all DEXs built on Orderly
Matching Engine	High-performance with less than 20ms latency

2.2 Settlement Layer: Zircuit L2

Zircuit is a fully EVM-compatible Zero-Knowledge Rollup with AI-enabled security.

Feature	Benefit
Security	ZK-proofs inherit Ethereum mainnet security
Efficiency	Transactions bundled to minimise costs
AI Protection	Additional defence against malicious transactions

3. Product Specification

3.1 Contract Details

Feature	Specification
Symbol	PERP_ETH_USDC
Type	Linear Perpetual Future
Underlying Asset	Ethereum (ETH)
Settlement Asset	USDC
Collateral	USDC
Tick Size	0.05 USDC
Max Leverage	Up to 100x
Trading Hours	24/7

3.2 Order Types

ZDEX supports a comprehensive set of order types:

Order Type	Description
Market Orders	Executed immediately at best available price
Limit Orders	Placed at specific price, adding liquidity
Stop-Loss	Automatically triggered when price reaches threshold
Take-Profit	Lock in gains at predetermined levels
Post-Only	Ensures order is added to book (maker fee)
Reduce-Only	Only reduces existing position size

3.3 Funding Rate Mechanism

Perpetual contracts use a funding rate to maintain alignment between derivative prices and spot market prices.

At regular intervals:

Scenario	Action
Positive Funding	Long positions pay short positions
Negative Funding	Short positions pay long positions

Funding is exchanged peer-to-peer and does not represent protocol revenue.

Warning: Funding rates can significantly impact profitability for positions held over multiple funding periods.

4. Risk Management & Liquidation

ZDEX incorporates multi-layered risk controls:

4.1 Margin Requirements

Type	Description
Initial Margin	Required to open a position
Maintenance Margin	Minimum to keep position open

4.2 Liquidation Process

Stage	Action
Warning	Users notified when approaching threshold
Partial Liquidation	System closes portion of position
Full Liquidation	Entire position closed if insufficient
Insurance Fund	Absorbs excess losses

Liquidations are rule-based, automated, and transparent.

4.3 Risk Controls

Control	Implementation
Real-time Monitoring	Continuous margin ratio tracking
Progressive Triggers	Graduated liquidation thresholds
Insurance Fund	Protection against system insolvency

5. Non-Custodial Design

ZDEX is fully non-custodial:

Feature	Description
Asset Control	Users retain control of assets
No Discretionary Access	Protocol cannot access user funds
Execution-Only	Funds committed only at execution

This design significantly reduces counterparty risk.

6. Risk Disclosure

Trading Risks

Trading on ZDEX involves significant risks including:

Risk Category	Description
Market Risk	Price movements may result in total loss of margin
Leverage Risk	Amplified losses with high leverage
Liquidation Risk	Positions may be liquidated automatically
Smart Contract Risk	Despite audits, vulnerabilities may exist
Oracle Risk	Price feed failures may affect trading
Funding Rate Risk	Rates may significantly impact profitability

Important Disclaimers

ZDEX provides no guarantees regarding trading outcomes
Trading does not constitute investment advice
Users should only trade with funds they can afford to lose
Past performance does not indicate future results
Leverage trading is not suitable for all participants

MiCA Compliance Note: This document is provided for informational purposes only and is structured to align with the disclosure, neutrality, and risk transparency principles set out under the Markets in Crypto-Assets Regulation (MiCA).

7. Security & Audits

Security Measures

Measure	Description
Non-Custodial	Users retain control of private keys
Smart Contract Audits	Rigorous auditing by top-tier firms
Bug Bounty	Active programs for white-hat hackers
Zircuit AI Security	AI-powered malicious transaction detection

Resources

Resource	Link
Website	zdex.world
Documentation	docs.zetarium.world
Twitter	@Zetarium_
Telegram	t.me/Zetarium_World
GitHub	github.com/zetariumworld
Orderly Network	orderly.network

This documentation is provided for informational purposes only. ZDEX does not provide investment advice, guarantees, or custodial services. All trading is at the user's own risk.

On this page