Market Lifecycle

Market stages at a glance

[ New Coin Launch ] ──> [ Warmup (24h, 10x max) ] ──> [ Active (40x max) ]
                                                              │
                                                        Clears 5 Gates
                                                              ▼
[ Existing Coin Listing ] ─────────────────────────> [ Graduated (Uniswap v4) ]
                                                              │
                                                        (Rare emergency)
                                                              ▼
                                                        [ Delisted ]

The stages explained

1. Warmup

• When: The first 24 hours after a new coin is created.
• Rules: The market is fully tradeable, but maximum leverage is capped at 10x.
• Why: Lets early price discovery happen without instant 40x liquidations.

2. Active (Primary Rail)

• When: Warmup ends automatically after 24 hours.
• Rules: Maximum leverage raises to 40x. All order types (Market, Limit, TP/SL) are fully active.
• Progress: The coin starts tracking progress toward graduation.

3. Transition

• When: The market clears all 5 graduation gates and graduation is executed.
• Rules: Trading pauses briefly while the engine seeds the Uniswap v4 spot pool and burns the LP position NFT to 0x...dEaD.
• Positions: Existing trades remain intact across the transition.

4. Graduated (Secondary Rail)

• When: The Uniswap v4 pool is live and confirmed.
• Rules:
  • Trades off the on-chain spot oracle with worst-of fills and skew premiums.
  • Opening leverage starts at 15x and increases by 5x a day up to 40x.
  • Automatically backed by the Counterflow Vault (cfUSDC).
  • Graduated markets cannot be deleted or ungraduated.

5. Delisted (Close-Only)

• When: Used only in extreme cases (e.g. underlying token exploit or protocol emergency).
• Rules: No new positions can be opened. You can close existing trades and withdraw your collateral at any time.

See also

• The vAMM Primary Market — how primary markets trade.
• The Secondary Market Engine — how graduated markets trade.
• Graduation into Uniswap v4 — what happens when a market graduates.