# Dynamics Slippage

Borabora manages LP risk with a dynamic slippage mechanism. The point-to-pool mechanism has the advantages of liquidity and zero slippage, which improves the capital efficiency and trading experience. At the same time, it also reduces the risk for LP. In both order books and AMMs, liquidity risk is mitigated through slippage. Therefore, we set up a slippage curve to simulate transaction slippage to mitigate LP risk exposure. Slippage is added to the TWAP price to determine the current price of the contract.

## **Aggregated Pool**

Trade perpetual contract on Borabora, you can enjoy trading slippage as low as 0.05%.There will only be slippage when opening a position, and there will be no slippage when closing a position or other operations.The size of the slippage is only related to the position when the position is opened and the long-short deviation when the position is opened. The specific relationship is as follows:

| Positions      | Slippage | long-short deviation | Slippage |
| -------------- | -------- | -------------------- | -------- |
| 0-10000        | 0.05%    | 0-0.05               | 0.05%    |
| 10000-50000    | 0.15%    | 0.05-0.1             | 0.15%    |
| 50000-100000   | 0.25%    | 0.1-0.2              | 0.25%    |
| 100000-200000  | 0.50%    | 0.2-0.5              | 0.50%    |
| 200000-500000  | 1%       | 0.5-1                | 1%       |
| 500000-1000000 | 2%       | 1.0-2                | 2.50%    |
| >1000000       | 10%      | >2                   | 10%      |

The final slippage is the larger value between the open position and the long-short deviation.

## Isolated Pools

Slippage = K(X/LP) + b

x is the function of the naked position

X = |L-S|

When L > S, the direction of opening a position is L, X = |L-S|; if the direction is S, X = 0;

When L < S, the direction of opening a position is L, X = 0; if the direction is S, X = |L-S|;

K and b are constants, which can be changed later through governance.

Initial K = 0.025, b = 0

Note: When calculating X, the position intended to be opened will be taken into account.


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