Crypto Volatility Index Manual

We’ve prepared this tutorial to help you better understand the CVI features and trading options

CVI

8 min readJan 19, 2021

Home

In the Home section, you can review the index and some stats about the CVI value.

Platform

On the platform dashboards, you may see:

The CVI current value — the market’s expectation of future volatility. The range of values for the COTI CVI index is between 0 and 200.
The total value locked in the platform in USD.
The total value locked in all liquidity pools in USD. It is the total value deposited into the platform by liquidity providers who expect the CVI index to drop or stay the same.
The total value of open positions in USD. Positions are bought by traders who expect the CVI index to increase.
The collateral ratio, which is the ratio between the open positions value and the total value locked in the platform.

Manage your positions

On this page, you can buy or sell your CVI positions as well as claim your $GOVI token rewards. If you expect the CVI index to increase, you should buy it (take a long position). You can check with the slider, to get an estimation of your potential profit.

For example, if you bought a CVI position with 10 ETH when the CVI index was 100, which later went up to 150, you would have earned 5 ETH.
You can read here about the trader’s role in the CVI platform.

My open positions

In this section, you can see the list of positions you have already opened.

The token and its position value
Your profits or losses in that particular position
The funding fee paid until now
The $GOVI you already gained, and may claim for in the claim section below
The estimated liquidation date — an estimated time left until the funding fee amount is equal to the position value, after which the position is liquidated.

Status of the position and a countdown until the position is available for selling.

Buy
In order to buy positions, you have to connect your wallet to the CVI platform. Then, click on the “Buy” tab → Select the currency you want to buy the CVI index with → insert the amount and click “Buy”.
You can also use the slider to check the potential position value

This action will generate the following fees:
- Purchase fee — a fee that you pay every time you open a position. The purchase fee is a combination of two fees:

A fixed percentage (currently 0.3%) from the amount used in the open position
The buying premium, which is added in case the platform collateral ratio (the ratio between the open positions value and total value locked in the platform) is above 80%. In addition, the premium is also composed of an element gauging the recent trend in volatility: the lower the trend, the lower the element of the premium.

You can check the current collateral ratio in the top-right corner of the page:

The purchase fee is distributed to the liquidity providers and $GOVI tokens holders

Funding Fee — It is the amount you pay for as long as you hold an open position. It will stop applying when you sell your CVI position or if it is liquidated. A funding fee is not constant and may change based on the CVI index value. The funding fee rate is inversely proportional to the CVI index value. For example: When the CVI index value is 50, the funding fee is 10% per day. When the CVI value is 60, the funding fee is 5.2%, 1.45% when the CVI value is 70 and 0.515% when the CVI value is 80

The funding fee is distributed among the liquidity providers.

Here is an example of how the fees are generated during a CVI position purchase and sale process:

Suppose the CVI index value is 60, and the collateral ratio is 60% (assuming a large amount of liquidity is provided), at the time you want to purchase a position for 100 USDT, which you plan on selling two days later.
The following will happen:
After the purchase, your position value will be worth 99.7 USDT since the purchase fee is 0.3%.
During this two days period, you’ll pay an additional funding fee of 10.36 USDT (5.2%) which will bring your position value to 89.34 USDT worth.
After two days, assuming the CVI suddenly went up to 120, you can now sell at a double index value, which would bring your positions value to 178.68 USDT. You would then have to pay a 0.3% selling fee, or in this case 0.53 USDT. The net value of your sold position will then be 178.14 USDT (78% profit).

Sell
If you have an open position and believe that from now on the CVI index will decrease or stay the same, you might want to consider selling it.

In order to sell your positions, first, you have to connect your wallet to the CVI platform. Then, click on the “Sell” tab → Select the currency you want to sell the position in → insert the amount (or click the ‘Max’ text to sell your entire position), and click “Sell”.

Selling will generate a selling fee. This fee depends on the time elapsed from the moment the trader opened a position and until it is sold. After buying a position, You won’t be able to sell it for the next 6 hours. If you sell your position 6 hours after its purchase, the selling fee will be high.The selling fee will decrease with time and will be at its lowest after at least 24 hours from the time of purchase.

The selling fee is distributed among $GOVI token holders who have staked their $GOVI tokens on the platform.

Claim
Each time you buy a CVI position, you’ll earn $GOVI tokens. In order to receive them, you have to claim them. Click on the “Claim” tab, select the token you have bought your position with and that you want to claim the GOVI reward for. Then click “Claim”. The $GOVI will be sent to your Ethereum address.

Manage your liquidity

My liquidity
In this section, you will find the detailed list of the liquidity you have previously provided to the platform, arranged by the token type. You can see your share in the liquidity pool, your profits or losses, the pool size and the status of your liquidity and whether it is available for withdrawal or still locked.

You can read here about the liquidity provider’s role in the CVI platform.

On the “manage your liquidity” page, you can deposit liquidity or withdraw the liquidity you previously provided to the platform’s liquidity pool.
If you expect CVI to drop or stay the same, you should provide liquidity to the platform. Once the CVI index drops, you will earn the fees paid by the traders who have opened the CVI positions and your share in their losses. For example, if a trader bought a position with 1000 USDT when the CVI index was 140 and h which later dropped to 70, the trader’s position would then be worth 500 USDT (if we ignore fees). As a liquidity provider, you would get your share from his loss according to your share in the LP pool.

Deposit
In order to deposit liquidity, click on the “Deposit” tab → select the deposit currency → insert the amount you wish to deposit, and click “Deposit”.

You may use the ratio slider, in order to estimate your profits for various values of the CVI index.

In order to maintain a stable platform, you will not be allowed to withdraw your liquidity for 72 hours.

Once you provide liquidity to the pool, you’ll receive CVI-LP tokens. You may stake your CVI-LP tokens via the “Manage your tokens” tab, in order to earn $GOVI tokens as a liquidity provider.

Withdraw
In order to withdraw your liquidity, click on the “withdraw” tab → select the currency of your withdrawal→ insert the amount you wish to withdraw or press the ‘Max’ button, and click “withdraw”.

You won’t be able to withdraw your liquidity for 72 hours after your last deposit.

If you deposit additional amounts into the liquidity pool using the same address, you will have a new 72 hours lock on all of your deposited liquidity.

In order to withdraw your liquidity, you have to send your CVI-LP tokens. If you already staked those tokens, first you have to ‘Unstake’ them in the ‘Manage your tokens’ tab. Only then will you be able to withdraw your liquidity.

Manage your tokens

On this page, you can manage your $GOVI and CVI-LP tokens.

You can stake, unstake your tokens and claim your rewards.

Stake
You can stake your $GOVI, the governance token for CVI, in order to earn platform fees.

You can also stake your LP tokens (the ones you have received as a liquidity provider) in order to earn $GOVI.
Click on the “Stake” tab → select the token you wish to stake → insert the amount to stake, and click “Stake”.

Unstake
In order to unstake your tokens, click on the “Unstake” tab → select the currency you wish to unstake → select the amount, and click “Unstake”.

Claim
In order to claim your rewards, click on the “Claim” tab, select a token and click the ‘Claim’ button, to receive all your rewards for that token.

Summary of activities

On this tab, you can review your trading statistics and see your liquidity, your open positions and your staked tokens. You can also look into the platform stats to see what the total locked value is, the size of pools, the amount of $GOVI staked and the fees collected for $GOVI holders, and more.