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Documentation Index

Fetch the complete documentation index at: https://docs.parquet.exchange/llms.txt

Use this file to discover all available pages before exploring further.

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How the pool works

A single USDC liquidity pool backs all 15 markets on Parquet. When you deposit USDC, you receive LP tokens proportional to your share of total pool value. The pool is the counterparty to every trade: when traders profit, the pool pays out; when traders lose, the pool earns.

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Depositing

Deposit USDC to mint LP tokens. The number of LP tokens you receive is based on the current pool value at the time of deposit. The first deposit into an empty pool requires a minimum of $1,000 USDC. This prevents manipulation of the initial LP token price. Subsequent deposits have no minimum.

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Withdrawing

Burn LP tokens to receive USDC. The amount of USDC returned depends on the current pool value — total USDC held minus amounts reserved for open positions and queue obligations. If pool utilization is high (a large portion of USDC is reserved for open positions or owed to the payout queue), you may not be able to withdraw your full LP position in a single transaction. As positions close and reserves are released, more USDC becomes available for withdrawal.
Deposits and withdrawals read the oracle, so they revert outside US Regular Trading Hours along with every other state-changing instruction. Plan rotations into and out of the pool during the session.

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How LPs earn

LPs earn through the fee accrual mechanism. 80% of every trading fee flows to LPs, added directly to the pool’s total USDC value. This increases the value of each LP token over time.
  • LP token value increases as fees accumulate and as traders realize losses.
  • LP token value decreases when traders realize profits.
Over time, if fee income exceeds net trader profits, LP token value trends upward.

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Reserve factor and OI caps

The pool enforces a maximum utilization ratio called the reserve factor. This limits how much of the pool’s USDC can be reserved for open positions at any given time, ensuring the pool retains a buffer for withdrawals and to absorb trader profits. Each market also has an **open interest cap of 50,000perside∗∗.Whenacapisreached,nonewpositionscanbeopenedonthatsideuntilexistingpositionsareclosed.With15activemarkets,thetotallong−and−shortOIceilingis50,000 per side**. When a cap is reached, no new positions can be opened on that side until existing positions are closed. With 15 active markets, the total long-and-short OI ceiling is 1.5M.

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Stock-perp-specific risks for LPs

In addition to the usual perp-LP risks (net trader profitability, utilization spikes, market exposure), Parquet LPs face a few risks specific to stock perps:
  • Overnight gap risk. US equities and ETFs gap on earnings, news, and weekend headlines. Parquet’s oracle pauses outside RTH, so neither traders nor LPs can adjust positions across the halt. A large opening print on Monday morning settles directly against the LP balance.
  • Concentration risk. With only 15 markets — heavily weighted toward US large-cap tech — correlated moves (tech selloffs, AI-narrative reversals) can sweep most of the OI in the same direction.
  • Queue obligations. total_usdc overstates withdrawable capital when the FIFO payout queue holds pending winning closes; check free_liquidity (see LP payout queue) before sizing a withdrawal.
For details on fees earned by LPs, see Fees & Costs.