# Introduction

#### What is Cobia?

Cobia is an advanced decentralized perpetuals exchange native to Sei Network, offering high-leverage trading on crypto, forex, and commodities using any ERC-20 token as[ collateral](https://flamix.gitbook.io/flamix-docs/glossary/glossary). Cobia eliminates price volatility risk from the collateral asset, allowing any asset - from governance tokens to memecoins - to be collateralized without additional liquidation risks. Cobia brings new utility to all tokens in the crypto space, enabling traders to gain exposure to other assets without ever selling their holdings.

Cobia runs on [Lynx](https://app.lynx.finance/)’s high-performance trading engine, custom-built for the Sei Network with native oracle support and deep ecosystem integrations.

**Key Features**

Traders:

* Any Token as Collateral: Use any listed token - from governance tokens to memecoins - as collateral to trade perpetuals. We are constantly supporting new collateral options. Note: Cobia is not compatible with fee-on-transfer tokens, re-basing tokens, and ERC777 or ERC1155 tokens (that incorporate callback functionality)
* Price Volatility Protection: Price fluctuations in the collateral asset do not impact the health of a trader's position or move them closer to liquidation
* Guaranteed Payouts for Successful Traders: Funds are earmarked on every trade to ensure that profitable positions are paid out, regardless of black-swan events or bank runs

Liquidity Providers:

* Single-Asset Liquidity Provision: Tailor exposure to specific assets by providing liquidity to select single-asset pools rather than a multi-asset basket (plus no impermanent loss)
* Fee Generation: Absorb trading fees from traders including opening/closing fees, interest payments, liquidation fees, and more.
* Limited Counterparty Risk: Funding rates exchanged between traders help balance open interests and reduce exposure to trader P\&L

**Listing your Token**

Any protocol or DAO on Sei can easily list their token as a supported collateral asset on Cobia, enabling token holders to use it to trade perpetuals. Listing your token on Cobia has many benefits:

* Increased Utility for the Token
* Revenue Opportunities for Token Holders
* Customizable Listing (eg. determine which instruments are tradeable using your token)

Cobia can support any ERC-20 token in an instant, regardless of which chain it's deployed on. Listing your token as a collateral asset on Cobia does not:

* Allow traders to short your token - only use it as a collateral asset
* Sell off your token during liquidations: liquidations create no negative price impact or risk of cascading events

With the flexibility to support any collateral asset, listing on Cobia is quick and easy. To learn more about integration, [contact us.](https://discord.gg/5NFRuKW9s7)

<br>


---

# Agent Instructions: Querying This Documentation

If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question.

Perform an HTTP GET request on the current page URL with the `ask` query parameter:

```
GET https://cobia.gitbook.io/cobia-docs/welcome-to-cobia/introduction.md?ask=<question>
```

The question should be specific, self-contained, and written in natural language.
The response will contain a direct answer to the question and relevant excerpts and sources from the documentation.

Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.