FAQ

What is reward bonus? How do I receive it?

Gemnify incentivizes users to add USDC to the liquidity pool when USDC's current weight is below its target weight. By balancing the pool, users earn the right to receive a reward bonus, which grants them additional tokens. There are two ways to earn a reward bonus:

1. Swap: A reward bonus is given when a trader swaps USDC(basically adding more USDC to the pool) for another token. For instance, if the DAI/USDC price is 1.0000 and a user swaps 100 USDC for DAI, they would typically receive 100 DAI (excluding fees). However, with the reward bonus, the user receives 101 DAI.

2. Add Liquidity: A reward bonus is also provided when a liquidity provider adds USDC to the liquidity pool. For example, if the USDC/ULP price is 1.0000 and a user adds liquidity of 100 USDC, they would usually get 100 ULP (excluding fees). Instead, the user receives 101 ULP with the reward bonus.

Why is the collateral shown on my position becoming less?

Borrowing fees are continuously deducted from your collateral. Additionally, if your position requires you to pay a funding fee to the opposing side, this fee will also be deducted from your collateral. To prevent liquidation, especially when using high leverage, it’s crucial to monitor your position regularly and add more collateral if necessary.

What fee do I need to pay for opening/closing position?

There are one-time fees such as execution and position fees, while borrowing fees and funding fees (if negative) are continuously deducted from your collateral. Please refer to this link for details.

What does 'Price out of range' mean?

To better protect Gemnify's users, the protocol halts order execution and position openings if the token price spikes or drops beyond a 4% range from $1. Setting a limit price outside of this 4% range is not allowed. For example, to open a long position on DAI, a limit price below 0.9600 won't be accepted; for a short position, a limit price above 1.0400 won't be accepted.

What is the difference between 'Settlable' and 'Claimable'?

The funding section displays the cumulative funding a trader earns from all markets where they have open positions. To make the total earnings available for claim, you must first submit a settlement transaction to finalize and settle the total amount earned. The newly settled amount will be added to the Claimable amount.

I added liquidity of asset A, why do I receive a combination of all assets? Can I get my original tokens back?

To maintain pool balance and prevent the depletion of any single asset, LPs remove liquidity by exchanging ULP for a basket of all supported stablecoins within the protocol. Currently, direct withdrawal of deposited tokens is not available.

Why is the market paused? What does Auto Close mean?

Please refer to Auto Closing for detailed information.

What makes Gemnify different from Uniswap and Curve?

Gemnify is based on a Proactive Market Maker (PMM) model, which provides several distinct advantages, including zero price impact for trades and more efficient use of liquidity. Gemnify’s model ensures that trades are executed at Oracle-based prices within a specific range, with no price discovery or slippage from large trades. This is a significant advantage over AMM protocols like Uniswap, where the price impact increases with trade size due to the constant product formula, which can lead to larger-than-expected price shifts. With Gemnify, slippage only occurs due to blockchain confirmation delays, not from trade size or liquidity constraints.

I am banned from using Gemnify, how to solve it?

Our products and services are not available to individuals or entities residing in, located in, incorporated in, or having a registered agent in a restricted jurisdiction. Please see this link for reference.