Specification
Contract specification for Kimp Contracts, the weekly cash-settled contracts on the Kimp Index for BTC, ETH, XRP, SOL and DOGE.
Kimp Contracts are weekly, cash-settled contracts on an asset's Kimp Index. They pay the change in the kimchi premium, in basis points, on a USD notional. They are fully collateralized, and the Kimp Pool is the counterparty to every position.
Contract specification#
| Item | Specification |
|---|---|
| Underlying | Kimp Index of one asset, in signed bps |
| Assets at launch | BTC, ETH, XRP, SOL, DOGE |
| Sides | Long premium, Short premium |
| Contract type | Weekly, cash-settled |
| Expiry | Every Friday, 08:00 UTC |
| Live series | One weekly series per asset; the next lists at expiry |
| Notional | USD |
| P&L | notional × Δbps / 10,000 |
| Entry and mark | Latest finalized on-chain index value |
| Settlement value | 1-hour TWAP, 07:00 to 08:00 UTC, 60 one-minute samples |
| Leverage | 1x to 3x open lane; 1x to 5x Verified Lane |
| Initial margin | notional / leverage |
| Maintenance margin | 25% of initial margin |
| Max notional per account per asset | 25,000 USD open lane; 250,000 USD Verified Lane |
| Collateral | ETH (10% haircut) and bridged USDC; GIWA KRW stablecoin when available |
| Trading fee | 0.05% of notional on open and on close |
| Settlement fee | 0.02% of notional |
| Skew charge | 0 to 0.10% of notional, only on trades that increase OI imbalance |
| Liquidation penalty | 0.50% of notional, to the Kimp Pool; keeper receives 10% of it |
| Counterparty | Kimp Pool |
| Contract | KimpMarket |
Sides#
A Long premium position gains when the index rises. It is a view that Korean demand will strengthen relative to global markets.
A Short premium position gains when the index falls, including when it moves from positive to negative. It is the natural hedge for anyone holding inventory that is priced at a premium on Upbit. The site calls this use Kimp Guard.
Payoff#
Δbps (Long) = exit_bps − entry_bpsΔbps (Short) = −(exit_bps − entry_bps)P&L = notional × Δbps / 10,000Exit is the index value at close, or the settlement TWAP if the position is held to expiry. The payoff is linear and symmetric. There is no convexity, funding rate or basis to an underlying spot price. See Worked P&L examples.
Full collateralization#
All margin is posted up front and escrowed by the Kimp Pool. The protocol extends no unsecured credit. Losses are bounded by the margin posted, and positions are liquidated before equity reaches zero under normal index movement. See Margin and leverage and Liquidation.
Lanes#
The open lane is permissionless. The Verified Lane requires a GIWA Dojang Verified Address and allows higher leverage and larger positions. Both lanes trade the same index and settle on the same TWAP. The Verified Lane has its own sub-caps within each asset's open interest cap.
Limits#
Position limits and open interest caps are governance parameters, adjustable through the 48-hour timelock. Per-asset open interest is capped as a percentage of pool NAV. See Skew limits and OI caps.
Market states#
| State | Open or increase | Close | Trigger |
|---|---|---|---|
| Normal | Allowed | Allowed | Default |
| Reduce-only | Not allowed | Allowed | Index stale for 5 minutes, Upbit halt, or settlement window |
| Paused | Not allowed | Allowed | Guardian pause |
The guardian is a 4-of-7 Safe multisig that can only pause markets. It cannot move funds or change parameters. See Admin keys and timelock.