Trading Guide
Trading on Zino
Introduction
Zino is a decentralized perpetual exchange that eliminates traditional trading barriers by enabling permissionless trading without registration or KYC requirements. The protocol employs a sophisticated aggregated price feed system that combines data from major exchanges with oracle inputs, effectively minimizing the risk of premature liquidations from price wicks while ensuring accurate and manipulation-resistant price discovery.
Getting Started
To begin trading on Zino, you'll need a Web3 wallet such as MetaMask or Rabby. The protocol operates across multiple networks including Ethereum mainnet, BSC (Binance Smart Chain), Arbitrum, and Base, offering traders flexibility in choosing their preferred trading environment. After accessing the trading interface, connect your wallet through the "Connect Wallet" button. The system will automatically detect if you're on a supported network and prompt you to switch or add the network if necessary.
Since Zino operates as a decentralized protocol, all interactions occur through RPC (Remote Procedure Call) endpoints. Each supported network maintains specific RPC configurations that ensure reliable connectivity and optimal performance. If you experience any connectivity issues or slow response times, you can manually configure alternative RPC endpoints through your wallet settings, using our recommended URLs for each network.
Overview
The Zino Finance trading infrastructure enables users to engage in leveraged trading with up to 100x leverage, providing access to highly capital-efficient positions. Before executing trades, users must supply collateral to back their leveraged positions. The collateralized funds determine the maximum allowable leverage, ensuring that risk exposure remains within predefined parameters.
Once a leveraged trade is executed, collateral remains locked until the position is closed. To withdraw funds after trading, users must first unlock their collateral through the platform interface. Withdrawals are subject to a 5-minute lock period, after which users can request fund releases from the Trade → Unlock Collateral page.
Zino Finance implements a structured fee model designed to maintain market efficiency while ensuring liquidity providers are appropriately compensated. Trading incurs a 0.06% transaction fee per trade, while open positions are subject to a funding cost of 0.006% per hour, ensuring that funding costs reflect market conditions in real time. A 0.5% collateral withdrawal fee is applied when users withdraw staked collateral, though deposits remain free of charge.
To ensure optimal trade execution, Zino integrates a proprietary Swap Router that aggregates liquidity from leading decentralized exchange aggregators, including 1inch, ParaSwap, and 0x. This liquidity aggregation mechanism ensures that all trades are executed at the most competitive market prices while minimizing slippage and reducing transaction inefficiencies.
Trading Mechanics
Zino offers exceptional flexibility in trading with leverage up to 100x on major pairs, setting it apart in the decentralized perpetual exchange landscape. The leverage system employs sophisticated risk management protocols that scale dynamically based on market conditions, position size, and asset volatility. When trading with maximum leverage, the protocol implements additional safety measures and monitoring systems to protect both traders and the overall market stability.
Position types on Zino follow traditional perpetual futures mechanics. Long positions generate profits when the token price increases and losses when it decreases, while short positions operate inversely. The protocol supports over 100 trading pairs across various networks, each with multiple collateral options to suit different trading strategies.
The collateral system offers remarkable flexibility, allowing traders to optimize their positions based on their market outlook and risk management preferences. For instance, when trading ETH markets, traders can choose between using ETH or stablecoins as collateral. Using ETH as collateral for long positions provides double exposure – both from the leveraged position and the collateral itself – making it an effective strategy for traders strongly bullish on ETH. Conversely, using USDC as collateral isolates the position's exposure to just the leveraged trade, simplifying PnL calculations and risk management.
For short positions, the protocol enables sophisticated strategies such as delta-neutral trading. Traders can open short positions using ETH as collateral, effectively earning funding fees while maintaining underlying ETH exposure. This approach is particularly valuable during periods of high funding rates or market uncertainty.
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Order Types and Execution Mechanics
The protocol supports a comprehensive suite of order types, each designed to serve specific trading strategies and risk management approaches. Market orders provide immediate execution at the current aggregate price, with the final execution price determined through a sophisticated pricing algorithm that considers active liquidity, market impact, and current order flow. When placing a market order, the protocol's smart routing system will optimize execution by analyzing liquidity across the order book and determining the most efficient fill path to minimize slippage.
Limit orders on Zino implement a hybrid matching engine that combines off-chain order book maintenance with on-chain settlement. When placing a limit order, traders specify their desired entry price, and the order remains active until either filled, canceled, or expired. The execution of limit orders isn't guaranteed and depends on several factors including mark price movement, available liquidity, and leverage constraints. The protocol's mark price, derived from our aggregated price feeds, must reach the specified limit price, and there must be sufficient liquidity at that price level for the order to execute.
Take-Profit and Stop-Loss (TP/SL) orders provide automated position management tools crucial for risk control. Traders can set multiple TP/SL orders for each position, with up to 10 active orders permitted simultaneously. The Auto-Cancel feature, enabled by default, automatically removes associated TP/SL orders when a position is closed, preventing unintended executions on future positions. These orders operate on a mark price basis rather than last traded price, ensuring more reliable triggering and reducing the impact of temporary price spikes.
Risk Management and Liquidation Mechanics
The protocol employs a sophisticated liquidation system designed to protect both individual traders and overall market stability. Positions become eligible for liquidation when their maintenance margin ratio falls below the required threshold, which ranges from 0.4% to 1% depending on market conditions and asset volatility. This maintenance margin is calculated continuously using oracle prices rather than last traded prices, providing protection against manipulation and ensuring fair liquidation processes.
For positions using maximum leverage (100x), the protocol implements additional risk controls. These include more frequent position health checks, stricter maintenance margin requirements, and accelerated liquidation procedures when market conditions deteriorate rapidly. The liquidation price is dynamically adjusted based on funding fees and borrowing costs, making it crucial for highly leveraged traders to actively monitor their positions and maintain adequate collateral buffers.
Trading Fees
Opening Positions: • 0.05% when improving market balance • 0.07% when worsening market balance • Deducted from available margin at execution
Closing Positions: • 0.05% when improving market balance • 0.07% when worsening market balance • Deducted from position PnL
Funding Rate System
Calculation Periods: • 1-hour intervals for rate calculations • 8-hour intervals for payments • Real-time accrual system
Rate Parameters: • Maximum Rate: ±0.75% per 8 hours • Minimum Rate: ±0.01% per 8 hours • Dynamic scaling based on market imbalance
Price Impact and Rebates
Positive Impact: • Unlimited positive impact possible • Applied immediately to execution • Better fills than market price
Negative Impact: • Rebate threshold: >1% for major pairs • Rebate threshold: >1.5% for other pairs • 80% rebate of impact beyond threshold • 10-day claim period for rebates • Maximum rebate: 5% of position size
Volume-Based Discounts
30-day Volume Tiers: • $100k-$1M: 5% fee reduction • $1M-$10M: 10% fee reduction • $10M-$50M: 15% fee reduction • >$50M: 20% fee reduction
Trading involves risks including but not limited to:
Smart contract risk
Liquidation risk
Market risk
Bridge risk (for cross-chain operations)
Please be aware and trade according to your level of risk tolerance.
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