Protocol Concepts

📄️ FX Pairs & Currency Support

Ollo Finance brings traditional foreign exchange markets on-chain as perpetual contracts. Each FX pair is represented as a dedicated market with its own order book, virtual token pair, and funding parameters.

📄️ Derivative Instruments

Perpetuals

📄️ Pricing Mechanism — Funding Rate

Perpetual contracts have no expiry date. Without a settlement deadline, there is no natural mechanism forcing the contract price toward the underlying spot price. The funding rate fills this role by providing a mechanism for periodic payments between longs and shorts and incentivizes traders to correct price deviations while keeping the perpetual anchored to the index.

📄️ Collateral & Margin Model

All positions on Ollo are collateralized in USDC. The protocol uses an isolated margin model where each position has its own dedicated collateral, and margin is tracked per-account across two buckets: available and committed.

📄️ Settlement

Settlement on Ollo happens in two layers: margin settlement (how USDC-denominated PnL flows between margin buckets) and token settlement (how virtual FX tokens are reconciled when a position closes). The margin side is covered in Collateral Margin section.

📄️ Liquidation & Risk Engine

The risk engine protects the protocol from bad debt by closing underwater positions before they become insolvent. It is designed specifically for FX markets and that specificity is what allows Ollo to offer meaningfully better trading parameters than generic perpetual protocols.