Core Design

In the following subpages, we examine some of the technical design choices of Cobia. Key elements include:

Gross Profit and Loss (P&L) How gross PnL is calculated in Cobia and why price volatility of a trader's collateral asset does not impact their PnL (ie. it does not affect their likelihood of liquidation).

Isolated Liquidity Pools Who acts as the counterparty to each trade and which asset is used as the "settlement asset" (ie. which tokens do profits get paid in).

Guaranteed Solvency How Cobia ensures that winning traders get compensated under all circumstances.

Trigger Bots What are the benefits of using bots to execute transactions on Cobia.

Chips: Cobia Utility Tokens How Cobia uses utility tokens called 'Chips' to facilitate transactions on the platform.

These subpages offer high-level coverage of some of Cobia's key design choices. For a deeper dive into the mechanics of the platform, see the litepaper here.