> For the complete documentation index, see [llms.txt](https://elysia.gitbook.io/elysia-perps/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://elysia.gitbook.io/elysia-perps/getting-started/collateral.md). # Collateral Inside the exchange, your collateral is settled in a **$1-denominated unit** — a unit worth exactly 1 US dollar. Each supported collateral token has its **own** such unit: when you deposit a token, it is credited as that token's $1 unit, which then behaves like a dollar stablecoin for margin, profit and loss, and fees. The live exchange uses **EL** as collateral, credited as **EL$**. A market launched with a different collateral token would use *that* token's $1 unit (for a token A, an "A$"). The examples on this page use EL$. ## Why a $1 unit Most perp exchanges only accept stablecoins as collateral. Elysia Perps can also accept a **non-stablecoin token** as collateral (see [Quanto Markets](/elysia-perps/introduction/quanto-markets.md)). The $1 unit is what makes that work: whatever token a market uses as collateral, that token is settled in **its own $1 unit**, so all trading math is done in dollars rather than in the volatile token. Crucially, the token is **not** converted into some other project's token — each collateral token maps to its own dollar unit. EL becomes EL$, token A becomes A$, and so on. ## How conversion works When you deposit, your token is credited into its $1 unit at a **fixed rate set per collateral token**: ![EL converts to EL$ at a fixed rate on deposit, and back at the same rate on withdrawal](https://1949530945-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FDKUIMv3mUd02iALaez0P%2Fuploads%2Fgit-blob-4e0732ea09b8bd66223c6655cae9169211cee7f5%2Fcollateral-conversion.png?alt=media) * The rate is **fixed per token**. It is set **once**, when the token is onboarded as collateral, from that token's reference price at that time — so it **differs from one token to another** and is *not* a flat 1:1 for every token. For example, a token set at around one cent converts roughly 100 units into 1 of its $1 unit (so \~100 EL → 1 EL$). * **The rate does not move with the market.** Once set, it stays fixed even if the token's market price later rises or falls. There is **no automatic re-pegging** and no periodic reset: \~100 EL stays 1 EL$ whether EL trades higher or lower than when the rate was set. This fixed peg is exactly what creates the collateral price exposure described below. * Deposits and withdrawals use the **same rate**, so a round trip returns the same amount of the underlying token (to 6-decimal precision). * The exact rate for each supported token is shown in the app. So inside the exchange you trade and settle in that $1 unit (EL$ on the live exchange), while on-chain you always hold the real token. ## What this means for your risk This is the most important thing to understand before trading with a non-stablecoin collateral token: * Because the $1 unit is treated as exactly 1 USD inside the platform, your **unrealized PnL is effectively measured in token terms**. * That means you carry **two exposures at once**: your trading position *and* the market price of the collateral token itself. * If the collateral token's price falls, the real-world value of your collateral falls too — independently of how your trades perform. If you want pure dollar exposure, use a stablecoin collateral where available. If you deposit a non-stablecoin token, size your positions with the token's own price movement in mind. ## Perp balance (spot planned) Today all collateral sits in a single **perp** bucket — margin for your perpetual-futures positions — because perpetual futures are the only trading currently live. A second **spot** bucket, used for spot orders and freely transferable to and from your perp margin off-chain (no on-chain transaction, no fee), is **planned** for when spot trading launches. It is **not live yet**. ## Where to go next * Move collateral in and out: **Getting Started →** [**Deposit**](/elysia-perps/getting-started/deposit.md) and [**Withdraw**](/elysia-perps/getting-started/withdraw.md). * The quanto model behind non-stablecoin collateral: [Quanto Markets](/elysia-perps/introduction/quanto-markets.md). --- # Agent Instructions This documentation is published with GitBook. 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