Everything You Need to Know About CVI: Chapter 2 — Trading CVI Volatility: What and how

Trading CVI Volatility: What and how

What should I do if the market goes up?

  • When the market goes up moderately, the volatility index generally decreases. It may be reasonable to take a “short position” as a liquidity provider. In the COTI CVI trading model, it can be even more attractive because of the funding fee, leveling the risk for liquidity providers.
  • If there is a market rally beginning, it may be reasonable to take a long position because the volatility will grow to reflect concerns of market rollback.
  • As a market rally continues and market participants accept the new level, it may be reasonable to take a short position again.

What should I do if the market goes down?

What should I do if the market is volatile?

What should I do if the market has stagnated?

Rewards and Fees

  • In addition to the change in the CVI index which is reflected in the matching value of the covered positions placed by traders and covered by the liquidity providers, there are additional elements relevant to the traders.
  • General fees such as the open \ close positions and deposit \ withdraw liquidity are collected into the fees pool, which is to be distributed between the stakers.
  • In addition, there will be as part of the rewards additional $GOVI tokens to be rewarded based on a predefined plan.

How Can I Become a Trader?

  1. Connect your Metamask or connect with WalletConnect → go to “Platform”

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CVI is a decentralized volatility index for the crypto space — powered by COTI network

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CVI

CVI

CVI is a decentralized volatility index for the crypto space — powered by COTI network

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