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Documentation Index

Fetch the complete documentation index at: https://docs.ultramarkets.xyz/llms.txt

Use this file to discover all available pages before exploring further.

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For Traders

No. All positions close before the event resolves. You’re trading probability movements, not betting on outcomes.
Nothing bad. Positions auto-close at the market’s close date. You don’t need to take any action.
Your position health dropped to 45%. This happens when the market moves against you significantly. Higher leverage means faster liquidation.
Phase 1 (direct liquidation) is used for smaller positions—we sell immediately on Polymarket. Phase 2 (Dutch auction) is used for larger positions to avoid market impact. In Phase 2, liquidators bid to buy your position at a discount, and the shares transfer directly to them without touching Polymarket order books.
Your shares are auctioned to a liquidator who pays for them. The vault recovers its capital, and any discount comes from your remaining margin. The liquidator receives your position (including its original close date).
Not currently. If a position is approaching liquidation, your options are to close it manually or let it liquidate.
$10 margin minimum. With 10x leverage, that’s a $100 position.
Yes. Market orders charge 0.5% of your margin at open. Limit orders charge 1.5% of your margin at order creation. No fee to close. If you profit, 10% of profit goes to LPs.
A position is created from the filled portion. It’s fully tradeable: you can close it or let it run. The unfilled capital (proportional margin + borrowed + fee) is refunded when the order is cancelled or expires.
Yes. Unfilled capital is refunded proportionally. The filled portion remains as a normal open position.
Limit orders require capital to be locked while waiting for fills and involve more operational complexity: CLOB placement, partial fill tracking, and proportional refunds.
Your position’s entry price is the weighted average across all fills. For example, if 60% fills at $0.65 and 40% fills at $0.63, your entry price is approximately $0.642.

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For LPs

Anytime there’s available liquidity in the vault. If utilization is high, you may need to wait for positions to close.
You can sell umUSD on the secondary market (AMM pools) for instant liquidity, though you may receive slightly less than NAV.
Yield comes from trading fees (0.5–1.5% of margin) and profit sharing (10% of trader profits). It accrues as NAV appreciation, not as distributions.
Longer deposits earn proportionally more. 0-30 days = 1.0x, 30-60 days = 1.1x, 60-90 days = 1.2x, 90+ days = 1.3x.
Yes, if bad debt occurs from failed liquidations. The USM (coming with token launch) provides first-loss protection.

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Technical

Polygon (Ethereum L2). Deposits and withdrawals are in USDC on Polygon.
Yes. It’s a standard tokenized vault, compatible with DeFi protocols that support ERC-4626.
On Polymarket, in a trader-specific Polymarket account that we create for you under the hood.
  • Traders custody their own shares. When you open a position on Ultramarkets, we execute a real trade on Polymarket into your Polymarket account, and the resulting outcome tokens are held there.
  • Ultramarkets is not the custodian of your Polymarket positions. We provide the margin, leverage, execution, and risk management layer, but the underlying shares live in your Polymarket account.
  • Key access: You can export the private keys for that Polymarket account after all positions have been settled.
Yes. Because the underlying trades are real Polymarket positions, traders (and LPs indirectly through execution) are exposed to Polymarket venue risks like downtime, liquidity issues, or resolution disputes. Ultramarkets reduces gap risk by force-closing positions before resolution, but it cannot remove Polymarket venue dependency.
No. Trades are executed into your own Polymarket account (per trader). We create this account for you automatically when you start trading. You do not need to manually find or set up a separate execution account.
Yes. The trade is executed into your own Polymarket account, and your Ultramarkets dashboard is the primary interface for monitoring the position during its lifecycle.
We cannot open new positions or close existing ones until Polymarket is operational. This is a dependency risk.