Liquidation fees apply when positions are forcibly closed due to insufficient margin
Size Denomination
Instrument Type
Denomination
Example
Options
Contracts
1 contract = 1 unit of the base asset
Perpetuals
Dollar-notional
$10,000 instead of 1 BTC
Perpetuals Funding
Kyan implements a continuous funding mechanism to ensure perpetual contract prices converge to their underlying index prices.
Funding Rate Calculation
Premium Index = (Perpetual Price - Index Price) / Index Price
Funding Rate = clamp(Premium Index × 0.9, -1.0%, +1.0%)
Settlement Process
Parameter
Details
Frequency
Hourly settlements (00:00, 01:00, 02:00, etc. UTC)
Payment Formula
Position Size × Time-Weighted Average Rate
Direction
Long positions pay when perpetual price > index price (positive funding)
Payment Direction
When the perpetual price is above the index price (positive funding rate), longpositions pay shorts. When below (negative funding rate), shorts pay longs.
Collateral Requirements
Parameter
Details
Primary Collateral
USDC
Calculation Method
Determined by the risk model (see Risk section)
Important Note for Arbitrum Sepolia: The mockUSDC token address on Arbitrum Sepolia is 0x07a7D6b723d0aa62cD78da00452Ba3cD3b72C3d7. This is not the actual USDC contract on Sepolia - it's a mock token used for testing purposes.
Available Expirations & Strikes
Expiration Type
Count
Details
Daily
2
Short-term options
Weekly
3
Medium-term options
Monthly
2
Longer-term options
Strike Prices
Variable
Range based on current market prices
API Access
Available
Retrieve via API endpoints
Note: New strikes and expirations are set (or updated) every day at
08:00 UTC.
ARB (Arbitrum) Token Naming Convention
Symbol Format
Strike Value
Description
1d250
1.25
Decimal point represented by 'd'
0d500
0.5
Decimal strikes for fractional values
Expiration
Parameter
Details
Date Format
DDMMMYY (e.g., "31OCT25" for October 31, 2025)
Expiration Time
8:00 AM UTC on the expiration date
Frequency
Weekly, monthly, and quarterly expirations
Settlement Price
Last index price
Settlement Currency
USDC
PnL Calculation
Realized PnL calculated and settled in USDC
Mark Price
Component
Details
Implied Volatility Feeds
Block Scholes with SVI volatility surface
Price Feeds
Chainlink price feeds for underlying assets
Volatility Surface
Stochastic Volatility Inspired (SVI) model parameters
Index Price Updates
Continuous updates
Volatility Updates
Real-time publishing
Mark Price Access
Real-time via WebSocket feeds
Liquidation Trigger
When equity falls below maintenance margin
Risk Monitoring
Real-time via WebSocket account_liquidation channel
Risk
Type
Description
Details
Initial Margin (IM)
Required to open new positions
Higher than maintenance margin requirements
Maintenance Margin (MM)
Minimum equity to maintain positions
Set at 1.2× the base requirement; liquidation triggered if equity falls below
Margin Ratios
IM/MM calibration
Based on asset volatility and market conditions; BTC & ETH have lower requirements than ARB
Risk Matrix
Portfolio risk calculation
Comprehensive matrix using stress scenarios including price movements and volatility shifts
Delta Risk
Directional exposure risk
Additional margin requirements for large directional exposures; scales with delta exposure relative to market liquidity
Roll Risk
Near-expiry options risk
Additional risk charge for portfolios with near-expiry options to prevent manipulation around expiration events
Risk Model Parameters
Model calibration
Similar to industry-standard models (reference: Deribit); calibrated on historical data with different parameter sets for different asset classes
API Key
Parameter
Details
Purpose
Authenticated access to Kyan's REST and WebSocket APIs
Management
Managed through Unkey (enterprise key management service)
Required For
All trading operations and account-specific data access
How to Obtain
Contact Premia team via email, Discord, or premia.io
Authentication
Method
Details
REST API Header
Include API key in the x-apikey header
WebSocket
Provide API key in the initial auth message
Request Signing
Trading endpoints require EIP-712 signature
One-Click Trading
Establish sessions to avoid signing each transaction
Note on One-Click Trading (1-CT): One-Click Trading sessions are valid for 24 hours. The 24-hour window is automatically refreshed whenever you perform certain actions including: submitting market or limit orders, canceling orders, placing combo trades, and participating in RFQ (Request for Quote)transactions.
EIP-712 Signatures
Kyan uses EIP-712 typed data signatures for secure authentication of trading operations. There are 7 different signature types, each designed for specific operations:
Overview of Signature Types
Signature Type
Purpose
Usage
UserLimitOrder
Sign individual limit orders
Most common - used for placing buy/sell orders
UserMarketOrder
Sign market orders with limit protection
Market orders with slippage protection
UserComboOrder
Sign combo trades (multi-leg)
Complex strategies like spreads
CancelOrdersType
Cancel specific orders
Cancel selected orders by ID
CancelAllOrdersType
Cancel all orders
Emergency cancel all functionality
FillRFQType
Fill RFQ responses
Participate in Request for Quote trades
OneClickSignature
Create trading sessions
Avoid signing each individual order
EIP-712 Domain
All signatures use the same domain configuration:
const EIP712Domain = {
chainId: 421614, // Arbitrum Sepolia (use 42161 for Arbitrum One mainnet)
name: 'Premia',
verifyingContract: '0x...', // ClearingHouseProxy address from deployment
version: '1',
};
Quick Start Example: Limit Orders
The most common signature type is UserLimitOrder. Here's a complete example:
Field Precision: All numeric values (size, price) must be converted to 6-decimal precision
Direction Mapping: Buy = 0, Sell = 1 in signatures
Taker Defaults: If no taker specified, use zeroAddress
Deadline Validation: Must be within 30 seconds for most operations
Account Support: Works with both EOA wallets and Safe (multisig) wallets
📚 For complete examples of all 7 signature types, see the EIP-712 Signatures Guide
Choosing Your Authentication Method
Method
Best For
Pros
Cons
Individual Signatures
Occasional trading, maximum security
Full control, no session management
Must sign each operation
One-Click Sessions
Active trading, automated systems
Convenient, faster execution
Session management required
Rate Limits
Endpoint Category
Rate Limit
Market Data
20 requests per second
Trading Operations
5 requests per second
Account Operations
2 requests per second
RFQ Endpoints
6 requests per minute
Error Handling: When rate limits are exceeded, requests are rejected with HTTP 429 status code. Implement exponential backoff for retry strategies.
Account Monitoring
Account State Endpoint
The /account_state/{account} endpoint provides comprehensive account information without requiring cryptographic signatures, making it ideal for dashboard applications and account monitoring.
Parameter
Details
Method
GET
Path
/account_state/{account}
Authentication
API key required (x-apikey header)
Signature
Not required
Rate Limit
Account Operations category (2 requests per second)
Example Request
curl -X GET "https://staging.kyan.sh/account_state/0x1234567890abcdef1234567890abcdef12345678" \
-H "x-apikey: your-api-key-here"