Overview
Most industry-standard perpetual exchanges margin each market independently. A new market can launch with a static oracle and maintenance-margin configuration because its risk is not calibrated against the rest of a trader’s portfolio. BULK works differently. It margins the trader’s entire portfolio using the variance of the signed position notionals and a live correlation matrix. A long position in one asset can offset a short position in a correlated asset, reducing the capital required for the combined portfolio. Depending on the hedge, this can produce margin reductions of up to 70%. BULK also uses a maintenance-margin surface calibrated across leverage, market regime, and position side. A fixed per-market MMR is often too conservative in calm markets and too permissive during tail events. BULK’s regime-aware model adjusts the requirement as market conditions change. This is why a standard deployer model cannot map directly to BULK. A new market does not yet have the tick-level history, cross-market correlations, nine-regime calibration, or session-gap data required to join the portfolio-margin system. BIP-1 gives the market time to produce that evidence before its risk is netted against other positions. Phase 1 allows rapid experimentation. Phase 2 enables robust risk management and greater capital efficiency.Deployer-Owned Market Lifecycle
Phase 1: Rapid Experimentation
Phase 1 launches the market in isolated-only mode so the deployer can find product-market fit without placing uncalibrated risk inside the wider portfolio. A deployer may launch up to 30 active Phase 1 tickers with no deployment fee or Dutch auction. The deployer selects each symbol using its prefix and cannot deploy an asset already listed by the protocol. The deployer pushes the oracle or index price used to keep funding tethered to the underlying market. BULK performs vanilla asset-risk calibration and configures a base-level MMR before launch. The deployer is responsible for maintaining liquidity. BULK does not offer any private MM arrangements. Phase 1 markets do not receive a liquidation backstop. Validators may vote to delist a market, and a deployer that manipulates its index feed or prices a contract to harm users can be banned.Phase 2: Maturation
Phase 2 begins when the market reaches product-market fit: growth in volume and open interest, supported by the tick-level history needed to calibrate the asset across all nine market regimes. BULK and the deployer then recalibrate the market, allocate correlations against existing markets, and keep its risk parameters current. The protocol also provides the oracle price natively, so a deployer-pushed oracle is no longer required. The final step in maturation, before the market converts to the full portfolio-margin system, is a 2 million USDC bond staked at the network. The protocol uses this bond to backstop liquidations. The bond is forfeited if validators delist the market for a policy violation. Otherwise, it is returned after five years or when the deployer chooses to settle the market. The bond requirement may be updated for future deployers as the protocol evolves. After maturation, the market enters full portfolio margining. Regime-aware models and wider correlation discounts can reduce margin requirements by up to 70%, providing robust risk management and greater capital efficiency for hedged portfolios.Deployer Economics
The deployer may add a variable fee of up to 100% of the applicable base protocol fee, making the maximum total fee twice the base fee. For example, a 3.5 bps base taker fee with a 50% deployer add-on produces a 1.75 bps deployer fee and a 5.25 bps total fee. At the 100% maximum, the same base fee produces a 3.5 bps deployer fee and a 7 bps total fee. The deployer fee accrues to the deployer’s wallet on every fill and is distributed every 14 days. The same fee model continues through Phase 2.Become a Deployer
If you are interested in becoming a deployer, reach out.Related Documentation
Introduction to BULK
Learn how BULK combines execution, risk, and settlement.
Portfolio Margin
Understand correlation-aware margining and regime-calibrated risk.
Builder Codes
Build custom trading experiences and attribute order flow.
API Documentation
Integrate market data, account queries, and trading APIs.