Protocol Rules

# S&F Tokens

An S&F token is minted when a trader enters a synthetic position and burned when the trader exits.

The token is the position. This is what lets S&F separate perpetual exposure from any single trading venue.

For the full explanation, see Position Tokens.

The token balance is derived from internal shares. balanceOf converts those shares into the displayed synthetic token amount using the current funding-adjusted share value.

# Rebase behavior

S&F tokens are share-based rebase tokens. The contract tracks internal shares, and balanceOf converts those shares into the current displayed synthetic token balance.

A trader's displayed balance can decay or increase as funding rate accumulates. Oracle price changes affect the economic value and settlement of the position, but they do not directly change the number of displayed tokens.

The token can represent a long exposure, called a Stip, or a reverse exposure, called a Flip.

# Stip and Flip

A Stip increases in value when the tracked asset price increases.

A Flip inversely tracks the price of an asset and increases in value when the tracked asset price decreases.