For Traders
Can I hold a position through resolution?
Can I hold a position through resolution?
No. All positions close before the event resolves. You’re trading probability movements, not betting on outcomes.
What happens if I forget to close my position?
What happens if I forget to close my position?
Nothing bad. Positions auto-close at the market’s close date. You don’t need to take any action.
Why was I liquidated?
Why was I liquidated?
Your position health dropped to 45%. This happens when the market moves against you significantly. Higher leverage means faster liquidation.
Can I add margin to avoid liquidation?
Can I add margin to avoid liquidation?
Not currently. If a position is approaching liquidation, your options are to close it manually or let it liquidate.
What's the minimum position size?
What's the minimum position size?
$10 margin minimum. With 10x leverage, that’s a $100 position.
Are there trading fees?
Are there trading fees?
Yes. 1% of your margin when opening a position. No fee to close. If you profit, 10% of profit goes to LPs.
For LPs
When can I withdraw?
When can I withdraw?
Anytime there’s available liquidity in the vault. If utilization is high, you may need to wait for positions to close.
What if I need to exit immediately during high utilization?
What if I need to exit immediately during high utilization?
You can sell umUSD on the secondary market (AMM pools) for instant liquidity, though you may receive slightly less than NAV.
How is yield calculated?
How is yield calculated?
Yield comes from trading fees (1% of margin) and profit sharing (10% of trader profits). It accrues as NAV appreciation, not as distributions.
What's the time-weighted multiplier?
What's the time-weighted multiplier?
Longer deposits earn proportionally more. 0-30 days = 1.0x, 30-60 days = 1.1x, 60-90 days = 1.2x, 90+ days = 1.3x.
Can the vault lose money?
Can the vault lose money?
Yes, if bad debt occurs from failed liquidations. The USM (coming with token launch) provides first-loss protection.
Technical
What blockchain is Ultramarkets on?
What blockchain is Ultramarkets on?
Polygon (Ethereum L2). Deposits and withdrawals are in USDC on Polygon.
Is umUSD an ERC-4626 token?
Is umUSD an ERC-4626 token?
Yes. It’s a standard tokenized vault, compatible with DeFi protocols that support ERC-4626.
Where are positions actually held?
Where are positions actually held?
On Polymarket. We execute real trades and hold the resulting outcome tokens in custody of the traders.
What happens if Polymarket goes down?
What happens if Polymarket goes down?
We cannot open new positions or close existing ones until Polymarket is operational. This is a dependency risk.