Skip to main content

Premarket

Overview​

Premarket trading allows users to trade token allocations before the Token Generation Event (TGE). This guide explains the key processes, requirements, and rules for participating in premarket trading.

1. Trading Phase​

Creating Sell Orders​

  • Sellers must deposit collateral equal to their selling amount
  • Collateral serves as a guarantee for token delivery post-TGE

Creating Buy Orders​

  • Buyers must deposit collateral equal to their buying amount
  • Collateral is released to seller upon successful token settlement
  • Buyers are required to claim back the their collateral manually if seller defaults

Matching Orders​

  • Users are allowed to match a buy/sell order by depositing the equivalent AVAX amount to the offer price

Order Cancellation​

  • Important: Orders cannot be cancelled after matching with a counterparty

2. Trading End Conditions​

  • Trading typically concludes before TGE
  • If TGE occurs before trading end:
    • All trades matched after TGE timestamp are cancelled
    • Full refunds issued to both parties
    • This prevents arbitrage opportunities

3. Settlement Process​

  1. Trading ends
  2. Settlement period begins briefly after TGE, and lasts for 24h (unless speficied otherwise)
  3. Sellers must:
    • Send promised tokens to platform contract via our website
    • Complete settlement within designated period
  4. Upon successful settlement:
    • Sellers receive their collateral back and buyer's funds
    • Buyers receive the token directly upon seller's settlement
  5. Upon failed settlement:
    • Seller's collateral is forfeited
    • Buyers are required to claim both party's collateral manually

4. Non-Settlement Consequences​

If seller fails to settle by deadline:

  • Seller forfeits 100% of collateral
  • Buyer receives full refund of their collateral
  • 70% of seller's collateral transferred to buyer as compensation, while 30% of seller's collateral collected by the platform.

5. Platform Fees​

Platform's Fees Breakdown​

  • Settlement Fee: 5% in AVAX, 5% in token
  • Default Fee: 30% of forfeited collateral goes to platform (remaining 70% to buyer)

Security Mechanism​

The collateral system is designed to:

  • Ensure seller commitment
  • Protect buyer interests
  • Maintain platform integrity
  • Provide compensation mechanisms for defaults
note

All collateral amounts must equal the full trading amount to ensure maximum security for all parties involved.