Confidential Futures DEX
The DarkVeil Confidential Futures DEX extends the privacy guarantees of our spot exchange to the world of perpetual futures, providing a secure environment for leveraged trading. This is where the benefits of confidentiality become most critical, as leveraged positions are prime targets for predatory strategies on public exchanges.
Key Concepts for Private Futures Trading
Our futures DEX is built on two foundational privacy principles:
Private Position Management: All critical details of a trader's position—including their entry price, leverage, collateral amount, and real-time Profit and Loss (PnL)—are encrypted and managed entirely within the Secure Enclave network. Only the position's owner can view these details.
Confidential Margin System: The enclave engine continuously monitors the oracle price feed and privately calculates the margin ratio for every open position. Traders can add or remove margin from their positions without broadcasting these sensitive financial decisions to the public blockchain.
The MEV-Resistant Liquidation Process
One of the most significant innovations of the DarkVeil Futures DEX is its private liquidation engine. On transparent exchanges, liquidation levels are often public, allowing predatory traders to trigger "liquidation cascades" by pushing the market price towards a large position's liquidation point.
DarkVeil makes this impossible.
Private Monitoring: The enclave engine is the only entity that knows the liquidation price of any given position. It confidentially checks the health of all positions in real-time.
Automated Internal Execution: If a position becomes undercollateralized, the enclave engine internally flags it for liquidation. It then automatically creates a market order to close the position against the confidential order book at the current fair oracle price.
Fair & Final Settlement: The liquidation is processed like any other trade, with a signed proof sent to the on-chain contracts for final settlement. Any remaining collateral is returned to the user's account.
Because the liquidation danger zone is never public and the execution is handled internally, there is no opportunity for external actors to target specific positions or trigger cascading liquidations. This creates a fundamentally fairer and more stable trading environment.
The combination of private position management and a confidential liquidation engine allows traders to use leverage without exposing themselves to the targeted, MEV-driven risks that are rampant across DeFi.
Next, take a closer look at the core technology that makes this possible in The Secure Enclave Engine.
Last updated