Pre-IPO Perpetuals

Pre-IPO perpetuals are derivatives that are available to trade before a company's IPO date. After the IPO date, the contract will transition into a regular RWA perpetual, with the mark price, index price, and funding rate following standard methodology described in RWA Perpetuals.

Prior to the transition, the mark and index price are derived from an aggregate of external venues that have listed the pre-IPO perpetual.

Pre-IPO perpetuals are subject to higher instability. There may be increased risk of wicks, volatility, and liquidations. Variational reserves the right to delist and force settle the contract in accordance with the settlement procedures in the event of any adverse market condition.

Funding

Since pre-IPO listings do not have the underlying broadly available to trade on stock exchanges yet, the premium index is undetermined. The funding rate is fixed at 0.005% every 8 hours, or equivalently, 0.015% daily.

IPO Transition

On the day of the IPO, the mark price, index price, and funding rate formulas will transition to a regular perpetual future as soon as it is established that oracle pricing can be obtained.