# Introduction to Flat Money A primer on flatcoins, Flat Money (UNIT), and the Flat Money protocol. The Flat Money protocol allows people to deposit collateral (either Rocket Pool ETH (rETH) on Base or Ether.fi's wrapped ETH (eETH) on Arbitrum) and mint Flat Money (UNIT), a decentralized delta-neutral flatcoin designed to outpace inflation. The Flat Money protocol also offers Leverage Traders the ability to deposit these collateral types and open long positions on their respective spot prices through perpetual futures contracts. Flat Money is the first protocol to offer end-to-end LSD (Liquid Staking Derivative) exposure to leverage traders. The future of onchain money will be built on Flat Money’s dual-market infrastructure. ## What is a Flatcoin? People need a better form of money that isn’t tied to any one fiat currency or exposed to fiat inflation. A flatcoin is just that — a better form of money that can only be built onchain: uncensorable, inflation resistant and backed by decentralized collateral. It’s designed to outpace inflation and preserve your purchasing power. Most importantly, a flatcoin shouldn’t have any exposure to legacy offchain financial risks. To learn more, listen to Brian Armstrong talk about the promise of the flatcoin asset class in the following Coinbase Ventures Request for Builders video 👇 {% embed url="" %} ## Why Flat Money (UNIT) is the future At Flat Money, we believe in the ETH Standard, or that ETH is the best store of value; staked ETH is pristine collateral that grows in value as adoption and usage of the Ethereum network grows; and liquid staking derivatives (LSDs) are the ideal backing for a scalable flatcoin. When it comes to a unit of account, most DeFi users are still looking at their portfolio in USD terms instead of ETH terms. If you believe in the future of ETH and the Ethereum network, holding Flat Money (UNIT) allows you to hedge against volatility and accrue steady value in USD terms without losing value over time to inflation. Instead of holding a stablecoin pegged to 1 USD that’s backed by centralized collateral, you can hold Flat Money — the first decentralized delta-neutral flatcoin built on Base (backed by rETH) and on Arbitrum (backed by eETH). It’s a purely onchain native currency that’s untouched by external financial dynamics. UNIT is money that grows in USD terms over time, so you can preserve your purchasing power and offset volatility within crypto markets. It addresses the issues people face when they hold fiat or stablecoins and provides a reliable financial alternative in an inflation-prone economy. ## The Flat Money Protocol [Flat Money](https://flat.money/) is an open source protocol where the future of onchain money will be built. The protocol doesn’t lock excess capital and can achieve 100% capital efficiency. Flat Money has limited exposure to other protocols, zero exposure to offchain assets, and zero external fees imposed on the system. You can deposit **rETH (on Base)** or **eETH (on Arbitrum)** into the Flat Money protocol to: * **Mint Flat Money (UNIT)** and participate as a Flat Money (UNIT) Liquidity Provider (LP). UNIT is an ERC-20 native token minted on Base or Arbitrum, depending on the collateral deposited. * **Open a long position on ETH** through perpetual futures contracts and participate as a leverage trader. Leveraged LSD positions are NFTs (ERC-721) minted on Base or Arbitrum. People interested in depositing rETH or eETH as collateral to mint Flat Money (UNIT) or as margin to open a leverage position can participate in one of the two available markets in the Flat Money protocol. # Key Definitions In the Flat Money documentation, we use terms that you may not be familiar with. As an easy reference, we’ve included those definitions below for your convenience. * **Borrow Rates (a.k.a., funding rates)**: To ensure that the price of a perpetual contract stays close to the underlying asset's spot price, funding rates are used. In the Flat Money documentation, we refer to this as the borrow rate. Traders who hold positions that go against the current discrepancy will receive payments, while those on the other side pay. This mechanism encourages traders to close or open positions, which in turn helps align the perpetual contract's price with the spot price. * **Delta Neutral**. Delta refers to the sensitivity of a derivative's price to changes in the underlying asset's price. A delta-neutral position means the overall position's value doesn't change with movements in the underlying asset's price. * **Leverage Long**. Leverage allows traders to amplify their exposure to an asset without having to provide the full capital. Going "long" means betting on the price of an asset to rise. * **Liquidation**. In perpetual leveraged contracts, traders use borrowed funds to amplify their exposure to an asset. If the market moves against a trader's position and the value of their collateral drops to a certain threshold, called the maintenance margin, the platform may automatically close (liquidate) the trader's position to prevent further losses. This liquidation ensures the platform and other traders are protected from excessive losses that could exceed the original collateral. Liquidation often comes with penalties, further emphasizing the need for traders to be cautious when using high leverage. * **Liquidity Provider (LP)**. A liquidity provider (LP) is an individual or entity that supplies capital to a market, typically in DeFi platforms like decentralized exchanges. In return, LPs earn fees or other incentives. * **Perpetual Contract**. In the DeFi context, a perpetual contract is a financial derivative, similar to a futures contract, but without a set expiration date. This means traders can hold their position indefinitely. The price of the perpetual contract tends to track the underlying asset closely. * **Skew**. Skew refers to the imbalance in the pricing of derivatives compared to the underlying asset, often resulting from more demand on one side of the market (either bullish or bearish). # The Flat Money Protocol People interested in depositing rETH (on Base) or eETH (on Arbitrum) as collateral to mint Flat Money (UNIT) or collateral as margin to open a leverage position can participate in one of the two (2) available markets in the Flat Money protocol. ## How the Protocol Works The Flat Money protocol has a dual-market infrastructure, which allows you to participate in the Flat Money (UNIT) Market as a Flat Money Liquidity Provider (UNIT LP) or in the Perpetual Futures Market as a Leverage Trader. Capital efficiency is achieved with Flat Money’s dual-market approach since UNIT LPs deposit rETH (on Base) or eETH (on Arbitrum) as the flatcoin’s backing asset and this liquidity pool is shared with the Perpetual Futures Market. \ When leverage traders open a long position, they borrow from the liquidity pool and contribute fees, which increase the value of Flat Money (UNIT) over time. Flat Money’s market architecture is illustrated in the diagram below.
# The Flat Money (UNIT) Market When you participate in the Flat Money Market, you deposit **rETH (on Base)** or **eETH (on Arbitrum)** into the market and mint Flat Money (UNIT). The respective collateral acts as the backing for UNIT and is held in the protocol’s shared liquidity pool. As a UNIT holder, you are also acting as an LP because your UNIT can be redeemed for a proportional share of the underlying liquidity pool. While many DeFi protocols require liquidity for their tokens to be built on decentralized exchanges, Flat Money (UNIT) can be redeemed for the **rETH or eETH** collateral held in the protocol’s shared liquidity pool. ### UNIT: the Delta-Neutral Flatcoin Flat Money (UNIT) is the first decentralized delta-neutral flatcoin backed by **Rocket Pool ETH (rETH)** on Base and **Ether.fi's wrapped ETH (eETH)** on Arbitrum. As a UNIT holder, you’re able to dampen the volatility of the underlying staked ETH while earning fees from Leverage Traders. Those fees are outlined in the following section. The combination of these fees in addition to the APY from ETH staking fees allows UNIT holders to preserve their purchasing power and reduce or eliminate their exposure to ETH price shocks. ### How UNIT LPs Earn Yield in the Flat Money Market The Flat Money protocol uses a shared **rETH (Base)** or **eETH (Arbitrum)** liquidity pool to connect the Flat Money Market with the Perpetual Futures Market. As a UNIT LP, you are effectively initiating a short position on Ethereum’s spot price using perpetual contracts. Between the short position, value accrual from ETH staking, and fees paid by Leverage Traders, UNIT is able to reduce or completely eliminate LPs’ exposure to ETH price volatility.
As a UNIT LP, you earn ETH staking yield on your rETH or eETH as well as the following fees from Leverage Traders: * **Trading Fees**. UNIT LPs accrue trading fees when Leverage Traders open, adjust, or close their long positions within the Flat Money protocol. * **Borrow Rate Fees (a.k.a., funding rate)**. Whenever this rate is positive, Leverage Traders are paying UNIT LPs to borrow for long positions from the protocol’s shared liquidity pool. The Borrow Rate is positive when the Long Open Interest is higher than the amount of collateral provided by UNIT flatcoin holders, since UNIT LPs provide the available collateral in the protocol’s shared liquidity pool. A positive Borrow Rate creates an incentive for people to mint more UNIT, increase the amount of collateral in the shared liquidity pool, and balance the delta between the Flat Money markets. * **Liquidation Fees**. If ETH’s spot price decreases and Leverage Traders' margin collateral isn’t sufficient to cover their open long position, their margin collateral will be liquidated. UNIT LPs earn these fees whenever Leverage Traders have their positions liquidated. * **ETH Staking Yield**. Since Rocket Pool ETH or Ether.fis eETH backs UNIT, UNIT LPs earn staking yield as well as the fees above. As a UNIT holder, you’re participating in the Flat Money Market. To maintain a balanced delta-neutral position, the Flat Money protocol connects the Flat Money Market with the Perpetual Futures Market. # The Perpetual Futures Market When you participate in the Perpetual Futures Market, you deposit rETH as your collateral margin, open a long position, and mint a non-transferable NFT (ERC-721) that represents your leverage position. The additional rETH is borrowed from Flat Money (UNIT) holders, who provide the rETH held in the protocol’s shared liquidity pool. As Leverage Traders increase their long positions, UNIT holders automatically assume the opposite short position, thus reinforcing a delta-neutral status for UNIT LPs. ## How Leverage Traders Earn Yield in the Perpetual Futures Market The Flat Money protocol uses the rETH liquidity pool to connect the Flat Money Market with the Perpetual Futures Market. As a Leverage Trader, you’re getting leveraged rETH price exposure by borrowing rETH from UNIT LPs, who are taking a short position on rETH’s spot price.
As a Leverage Trader, you earn a profit when: * **The Price of rETH Increases**. If the price of rETH goes up, Leverage Traders can profit at a multiple of the price increase due to the borrowed rETH in their position. * **Borrow Rate Fees Are Negative**. Whenever this rate is negative, UNIT LPs are paying Leverage Traders to borrow rETH for long positions from the protocol’s shared liquidity pool. The Borrow Rate (a.k.a., the Funding Rate) is negative when the Long Open Interest is lower than the amount of rETH collateral provided by UNIT LPs, since Flat Money holders provide the available rETH in the protocol’s shared liquidity pool. A negative Borrow Rate creates an incentive for people to create more open leverage positions to balance the delta between the Flat Money markets. ### Fees in the Perpetual Futures Market As a Leverage Trader, you can turn a profit in the right market conditions, but you’ll also pay standard trading fees and run the risk of having your collateral margin liquidated if rETH’s price declines and your collateral is insufficient to cover your position. Leverage Traders pay the following fees: * **Trading Fee**. There is a 0.08% fee when you open, close, or adjust your leverage position. * **Keeper Execution Fee**. There is a variable fee, which is dependent on market conditions, you pay when your collateral margin drops below the maintenance margin for your open long position. * **Borrow Rate Fee**. Whenever this rate is positive, Leverage Traders are paying UNIT holders to borrow rETH for long positions from the protocol’s shared liquidity pool. The Borrow Rate is positive when the Long Open Interest is higher than the amount of rETH collateral provided by UNIT holders, since Flat Money holders provide the available rETH in the protocol’s shared liquidity pool. A positive Borrow Rate creates an incentive for people to mint more UNIT, increase the amount of rETH in the shared liquidity pool, and balance the delta between the Flat Money markets. Together the Flat Money and Perpetual Futures Markets create incentives to maintain a delta-neutral position for UNIT holders. At times, the skew (i.e., the net difference between total long position size and UNIT LPs) may be positive or negative. This means the Flat Money markets may not always be completely delta neutral. # How Flat Money Maintains a Delta-Neutral Marketplace
The Flat Money and Perpetual Futures Markets achieve an overall delta-neutral position when the available rETH liquidity is borrowed by Leverage Traders to open long positions. The protocol’s Borrowing Rate provides UNIT LPs and Leverage Traders incentives to keep a delta-neutral position between the Flat Money and Perpetual Futures Markets. * When the Borrowing Rate is positive, Leverage Traders pay UNIT LPs. A positive Borrowing Rate attracts more UNIT LPs, who provide additional rETH liquidity for Leverage Traders to open long positions. * When the Borrowing Rate is negative, UNIT LPs pay Leverage Traders. A negative Borrowing Rate attracts more Leverage Traders, who open new long positions, borrow rETH, and pay UNIT LPs various fees. ## Example: From 1 Delta Exposure to Delta Neutral As an example, let’s say UNIT LPs contribute 100 rETH to the protocol’s shared liquidity pool at launch. Because UNIT LPs have contributed rETH liquidity and taken a short position, but the liquidity isn’t yet utilized by Leverage Traders, the Borrow Rate turns negative to attract Leverage Traders to the Perpetual Futures Market. In this scenario, the Flat Money Market has a delta of 1. The negative Borrow Rate begins to attract Leverage Traders to the Perpetual Futures Market, and they open a total of 50 ETH in long positions. The Flat Money Market now has a delta of 0.5 and the Borrow Rate remains negative.
Again, the negative Borrow Rate creates an incentive for Leverage Traders to increase their long positions. An additional 50 ETH in long positions is opened, which creates a delta-neutral equilibrium within the Flat Money Market, where shorts and longs are evenly matched. Under delta-neutral conditions, the Borrow Rate is neutral. If Leverage Traders open additional long positions worth 20 ETH, the Borrow Rate turns positive to attract UNIT LPs to the Flat Money Market. In this scenario, the Flat Money Market has a delta of -0.2.
This is just one example of how the Flat Money protocol maintains a delta-neutral market. If you’re interested in asking about specific examples, [join us in Discord](https://discord.gg/peRCa6WBWT) and reach out to the team. # Acting as a UNIT LP Interested in depositing Rocket Pool ETH (rETH) and minting the Flat Money (UNIT)? Here’s everything you need to know. ## How Flat Money (UNIT) Outpaces Inflation, Dampens Volatility While many protocols allow you to deposit crypto assets and mint stablecoins as long as you maintain an overcollateralized position, you end up paying a variable annual percentage yield (APY) to mint and borrow stablecoins, while your stablecoins are devalued over time by inflation. Flat Money (UNIT) isn’t pegged to 1 USD. UNIT is a low-volatility yield-bearing flatcoin that's value floats around the price of rETH in USD terms and steadily grows in value, as UNIT holders earn trading fees, liquidation fees, and redeeming fees, as well as earning positive Borrow Rate fees. As a UNIT LP, you are still earning rETH’s staking yield, while taking a delta-neutral position. The rETH liquidity in the Flat Money Market allows leverage traders to take the other side and pay you a Borrow Rate when demand for leverage is high. You pay no interest to mint and hold UNIT. Instead, you earn fees from the Perpetual Futures Market and UNIT redeeming fees, as outlined below. Through these fees and rETH’s native staking yield, UNIT grows in USD value over time to counter inflation and dampen ETH’s volatility.
While people seek stablecoin yields within DeFi, UNIT provides an alternative where you can mint and hold UNIT; earn built-in yield without taking on additional smart contract risk; and choose a capital efficient, censorship resistant flatcoin to store and grow your USD value over time. ## How to Mint Flat Money (UNIT) To mint Flat Money (UNIT), you need to go to the UNIT page in the [Flat Money dApp](https://flat.money/flatcoin) and connect your crypto wallet. Head to the Mint/Redeem section, where you will see a screen that allows you to select the amount of rETH you want to deposit into the Flat Money protocol. Once you have entered the amount of rETH you want to deposit, you will see an estimated amount of UNIT that will be minted if you select the **Trade** button below. You can select the gear wheel in the top right of this window to change your slippage tolerance and the token approval amount, as well. While you confirm the amounts you entered and your slippage preferences, you can see the estimated keeper fee. The keeper fee is dependent on Base’s gas prices, which you can [review on L2scan](https://base.l2scan.co/). When you are ready to deposit rETH, you can select **Trade** to mint your UNIT flatcoins. After the transaction is complete, you will see the UNIT flatcoins in your wallet. If you’re using a crypto wallet that requires you to add new tokens manually, you can enter the following information to add UNIT to your wallet: * UNIT contract address: [0xb95fB324b8A2fAF8ec4f76e3dF46C718402736e2](https://basescan.org/address/0xb95fb324b8a2faf8ec4f76e3df46c718402736e2) * Token symbol: UNIT * Token decimal: 18 The rETH you deposit will be held in Flat Money’s shared liquidity pool, which holds the rETH that backs UNIT and provides liquidity to allow any UNIT LP to redeem their UNIT for its underlying rETH. ## How to Redeem UNIT for rETH As outlined above, UNIT LPs don’t need to provide liquidity on decentralized exchanges because the rETH held within the Flat Money protocol allows flatcoin holders to redeem their UNIT for its underlying rETH at any time. If you want to redeem your UNIT for rETH, you need to [go to the UNIT page in the Flat Money dApp](https://flat.money/flatcoin) and connect your crypto wallet. Head to the **Mint/Redeem** section, where you will see a screen that allows you to select the amount of UNIT you want to redeem for rETH. Once you have entered the amount of UNIT you want to redeem, you will see an estimated amount of rETH that will be withdrawn if you select the **Trade** button below. You can select the gear wheel in the top right of this window to change your slippage tolerance and the token approval amount, as well. When you redeem your UNIT, you will pay a one-time withdrawal fee of 0.25% in additional to the standard keeper fee, which is estimated in the UI. The keeper fee is dependent on Base’s gas prices, which you can [review on L2scan](https://base.l2scan.co/). When you are ready to withdraw your rETH, you can select **Trade** to redeem your UNIT for its rETH backing. After the transaction is complete, you will see the rETH in your wallet. # Acting as a Leverage Trader Interested in depositing rETH as margin collateral and participating as a Leverage Trader? Here’s everything you need to know. Flat Money’s Perpetual Futures Market provides a simple way to execute large leverage positions on staked Ether (rETH) in an isolated environment to limit your exposure to other crypto assets and smart contract risk. ## How to Open a Long Position To open a long position, you need to go to the Leverage page in the [Flat Money dApp](https://flat.money/leveraged) and connect your crypto wallet. Head to the **Open a Position** section, where you will see a screen that allows you to select the amount of rETH you want to deposit as margin collateral into the Flat Money protocol. Once you have entered the amount of rETH you want to deposit, you can choose your preferred leverage amount (i.e., 2x, 5x, 10x, 15x, or 25x). After selecting your preferred leverage amount, you can review the position preview screen below, which displays: * **Estimated Entry Price**. The entry price of your rETH long position, which accounts for a price difference of +/- 0.25% to account for price movements when you submit the transaction onchain. * **Estimated Liquidation Price**. If rETH drops below this price, your margin will be liquidated and your position will be closed. * **Keeper Fee**. The keeper fee is dependent on Base’s gas prices, which you can [review on L2scan](https://base.l2scan.co/). * **Trading Fee**. When you open, close, or adjust your position, you pay a 0.08% trading fee based on your position or, if it’s an adjustment, 0.08% of the position size change. * **Deposit**. The total amount of margin collateral you’re depositing to open your long position. * **Total**. The total amount of your rETH deposit, the keeper fee, and the trading fee. When you’ve reviewed your position and are ready to confirm the transaction onchain, you can select the **Open Position** button and submit the transaction onchain. Once your transaction is confirmed, your margin collateral and fees will flow into the Flat Money protocol’s shared liquidity pool. The rETH you’re borrowing for your long position also comes from this shared liquidity pool, which consists of rETH deposited by UNIT LPs, margin collateral, and various fees. ## Adding to Additional Collateral to Your Margin If your position is at risk of liquidation, you can increase the amount of margin collateral, which will require you to deposit additional rETH to further collateralize your position. As a reminder: if you adjust your position, you will need to pay a 0.08% trading fee based on the size of your position change. ## How to Close a Long Position You can also close your position and remove your margin collateral, which will be withdrawn to your wallet. As a reminder: if you close your position, you will need to pay a 0.08% trading fee. ## How Liquidations Work If your active long position reaches your liquidation price, a keeper will be able to liquidate your position. When a position is liquidated, the following happens: * Your margin collateral will be liquidated and will remain in the Flat Money shared liquidity pool * Your long position will be closed * Your portfolio page will be updated in the UI to reflect your Profit and Loss (PnL) ### The Liquidation Process Liquidation keepers can check the Flat Money database to fetch information about open positions and their liquidation prices. Every 15 minutes, keepers can refresh liquidation prices and get information about new positions via an RPC batch request. When positions become eligible for liquidation, the information for those positions is sent to the liquidation queue. Keepers monitor the queue and begin to liquidate margin collateral and close positions if the `canLiquidate` function provides a `true` result. For more technical detail on the liquidation process, see the relevant page in the **Developer Resources** section. # Protocol Security The security of the Flat Money protocol is our top priority. ## Security Practices The Flat Money team’s security practices include fuzzing, unit testing, and routine peer reviews of the codebase. External measures include professional security reviews, contests, and pre/post-deployment bounties. The protocol has in-built invariant checks on every user order execution. These checks ensure the integrity and accounting within the overall system at all times. At launch, the Flat Money protocol will be audited with a bug bounty program in place, which will be managed through Immunefi. After Flat Money launches, measures will be taken to implement circuit breakers in the Flat Money smart contracts; any new features will undergo security reviews before they are put into production. For more details, see the sections below. ### Smart Contract Audits The Flat Money team has worked with [Sherlock](https://sherlock.xyz/) to audit the protocol’s codebase multiple times. The audits along with their reports can be found below: * January 2024 - [Flat Money Sherlock audit contest ](https://audits.sherlock.xyz/contests/132) * April 2024 - [Flat Money Sherlock fix review audit contest ](https://audits.sherlock.xyz/contests/287) * January 2025 - [Flat Money Sherlock Security Review](https://files.gitbook.com/v0/b/gitbook-x-prod.appspot.com/o/spaces%2F6jxnGsSeYJfPRFFT97Bn%2Fuploads%2FM9i0snPCGjtRP5KASAyw%2F2025.03.07%20-%20Final%20-%20Flat%20Money%20Private%20Audit%20Contest%20Report.pdf?alt=media\&token=3b2e2ebf-ac03-44af-923a-1d124393d749) Sherlock is an incentive-aligned auditing protocol that provides a hybrid audit, which combines the benefits of a legacy audit and an audit competition. The end result is more experienced eyes on the Flat Money codebase. The Flat Money team is working with the Sherlock team to purchase bug bounty coverage to incentivize responsible disclosures and provide protection in the event an exploit were to occur. ### Bug Bounty Program Flat Money runs an ongoing bug bounty program with [Sherlock](https://audits.sherlock.xyz/bug-bounties/1), where ethical hackers help secure DeFi contracts by identifying vulnerabilities in exchange for rewards based on severity. | Severity | Payout Amounts | | -------- | -------------- | | Critical | USD $50,000 | [Flat Money Sherlock Bug Bounty](https://audits.sherlock.xyz/bug-bounties/1) ### Exposure to Third Party Infrastructure The Flat Money protocol is designed to have no exposure to third-party protocols and limited exposure to outside infrastructure. The protocol does use [Pyth Network](https://pyth.network/) for the protocol’s primary oracle infrastructure to accurately price rETH and avoid user frontrunning of the oracle. There is also oracle redundancy in place with a [Chainlink](https://chain.link/) price feed as a final price sanity check to increase the security of Flat Money’s oracle infrastructure. The only asset used within the Flat Money protocol is Rocket Pool ETH (rETH). No other crypto assets are used within the protocol. # Pyth Network Price Oracle The Flat Money protocol uses Pyth Network to get an accurate rETH price oracle. The oracle ensures that all the UNIT and leveraged rETH positions are priced correctly. For each order, the user announces their order and after a short delay, a keeper executes the order with a fresh rETH price from Pyth. It means that trader orders execute on a price that is slightly in the future. This prevents traders from being able to frontrun the price oracle and profit by delayed price updates. Using purely onchain oracles for pricing exchanges has significant inefficiencies and limitations. A more effective approach involves price feeds that are updated in a high performance environment, with their validity and recency confirmed onchain. This method offers a beneficial compromise for protocols dependent on oracles. Pyth price feeds are engineered for speed, accuracy, and dependability, updating each second. Price updates are visible on the Pyth Network website. Each update represents a blend of prices reported by various providers. To ensure accuracy and mitigate the influence of collusion or errors from a few providers, Pyth uses a price aggregation process. The reliability of the feeds is further enhanced by the redundancy among providers. Learn more about the [Pyth Network](https://pyth.network/). # Protocol Risks Below, you can find information about the risks of participating in the Flat Money markets. ## General Risks When interacting with any blockchain application, you should consider the following: * Caution should be exercised when interacting with any smart contract or user interface. * Smart contract risks are mitigated as much as possible through testing, audits and bug bounties. However, there is always a risk that vulnerabilities may be discovered in smart contract code after mitigations take place. * [Phishing](https://en.wikipedia.org/wiki/Phishing) and scams are common in web2 and web3. In any event, always be sure to review what links you’re clicking on, ensure that you are using official user interfaces (UIs), and check every transaction you sign in your crypto wallet. * Blockchain related phishing scams can involve tricking a user to reveal their private keys, seed phrases, other sensitive information or tricking a user to sign malicious transactions. However, there are wallet-level tools like [MetaMask Snaps](https://metamask.io/snaps/), [Wallet Guard](https://www.walletguard.app/), and [Forta Alerts](https://forta.org/) that allow you to detect malicious transactions before you sign them. Be sure to carefully review each transaction you sign. * It may be prudent to maintain two separate wallets, one wallet to store the majority of holdings and funds, and another wallet to use when interacting with new websites. * When interacting with new websites and signing transactions in your wallet it is important to check the contract being interacted with as well as the operation being signed, most wallets will display the name of the operation to be signed. You can refer to the tools included above as an added security measure, too. ## Oracle Risks While Pyth Network and Chainlink oracles provide decentralized, reliable price feeds, there is no 100% guarantee that these oracle services won’t experience issues in the future. You can review the [Protocol Security](/protocol-security) section for more information on the security information regarding Flat Money’s oracle solutions, as well as the [Pyth Network Price Oracle](/pyth-network-price-oracle) section. ## Liquidation Risks The Flat Money protocol has an open-source liquidation process, where anyone can run a liquidation keeper. However, if losing positions are not liquidated in time, there is a risk that underwater positions (where a Leverage Trader’s margin becomes negative) can lead to socialized losses within the protocol’s shared liquidity pool and impact UNIT LPs. ## Non-Delta Neutral Liquidity Providers (LPs) There may be scenarios where the UNIT flatcoin will not be fully delta neutral and will have some positive or negative delta exposure. This happens in scenarios where the rETH long open interest either doesn’t reach the total UNIT LP amount or exceeds it. The long open interest may be below UNIT LP amounts when the market is bearish or when the perpetual future market’s Borrow Rates are not favorable for Leverage Traders. Or simply, there may not be enough overall market long interest to hedge the UNIT LPs. In these scenarios, the funding rate would adjust to incentivize Leverage Traders to open long positions. Due to the possibility of a negative Borrow Rate (where UNIT LPs pay leverage traders) and imperfect hedge, there may be periods where the UNIT LPs are not earning yield, or the overall value of the UNIT flatcoin is decreasing (negative yield). This downside risk may be offset by typically positive Borrow Rates, fees collected from Leverage Traders, and rETH’s native staking yield. #### Max Long Open Interest To avoid a scenario where there is a significant amount of long interest compared to UNIT LP collateral (UNIT LPs position is significantly net short), there is an open interest cap for Leverage Traders. The open interest cap is set to 120% of the UNIT flatcoin’s rETH collateral and limits the risk of UNIT liquidation. Any UNIT redemptions that would increase the net short beyond the cap are not possible under these specific market conditions. Therefore, there may be times when UNIT withdrawals are blocked until the Borrow Rate brings the skew back within range. # Flat Money Points (FMP) Earn Flat Money Points (FMP) by participating in the Flat Money markets. FMP will also be allocated in future seasons to ecosystem partners who align with Flat Money’s mission to create better onchain money with LST collateral. ## Flat Money Points (FMP) As Flat Money gains adoption, we want to reward early users and aligned-ecosystem participants with Flat Money Points (FMP). Our points program is completely onchain—anyone can see the current supply of FMP by reviewing the [smart contract on Basescan](https://basescan.org/token/0x59525b9b23ADc475EF91d98dAe06B568BA574Ce5). On this page, we provide an overview of our points program and answer commonly asked questions. ### FMP Fair Launch The FMP distribution will be a fair launch, which means everyone has the same opportunity to earn FMP by contributing to the Flat Money ecosystem. Our team hasn’t raised any funds. There are no VCs in Flat Money and no outside investors who are getting better terms than you. Anyone who earns FMP is subject to the same 12-month vesting period. For the FMP distribution, 100% of the supply will be allocated to the community. In the future, FMP will convert to Flat Money’s native token. Learn more about the FMP allocation and the Future Utility for FMP below. ### FMP Seasons Series We will be distributing FMP throughout a series of seasons, some of which have previously been announced in [The Flat Money Points (FMP) Seasons Series](https://flat-money.ghost.io/fmp-seasons-series/) post on our blog. In the FMP Allocation section, we outline allocations to some upcoming and soon to be announced seasons. Keep an eye on our [Twitter](https://twitter.com/0xflatmoney) and [Farcaster](https://warpcast.com/flatmoney) accounts for more information on our upcoming seasons. ### FMP Allocation Below you can find an overview of the points we’ve allocated to early ecosystem participants, early depositors, early adopters, and FMP seasons. All FMP will be made available to anyone who participates in the Flat Money ecosystem. If you earn FMP, you will be able to see your FMP allocation and your current vested balance on the [Points page in the Flat Money dApp](https://flat.money/points). The only exception is the Flat Money Early Depositor Vault on Toros Finance. If you participated in the Early Depositor Vault, [you can see your FMP allocation in the Toros dApp](https://toros.finance/flat-money-early-depositor-vault).
| Activity | Points Allocation\* | | ------------------------------------- | ------------------- | | Social Incentives (Twitter + Discord) | 100,000 | | Flat Money Ambassadors Program | 400,000 | | Early Testnet Competitions | 477,500 | | Season 1: Early Depositor Vault | 22,000,000 | | Season 2: DHT Staking Vault | 10,000,000 | | Season 3: TBA | 8,000,000 | | Season 4: TBA | 5,000,000 | | rETH Perpetual Futures Market Trading | 4,000,000 | | Farcaster Campaign | 250,000 | {% hint style="info" %} The total allocation shown for each activity is dependent on activity. In the event that participation in a given season or activity is low, the total allocation may not be distributed and the total supply of FMP may be lower than projected. {% endhint %} More FMP may be allocated to future incentive programs. However, there is a cap on the total FMP that will ever be minted and allocated for incentives. **In total, no more than 100m FMP will be minted and distributed during Flat Money’s points program.** ### FMP Vesting Everyone who earns FMP through the Flat Money Points program will be subject to a 12-month vesting period. The Flat Money team has chosen a vesting schedule to reward long-term aligned Flat Money users with a greater portion of FMP and prevent short-term airdrop farmers who are looking to simply claim and sell their tokens immediately. If FMP is claimed before the one-year vesting period is complete, then a user will forfeit a percentage of their total claimable FMP. Again, this is designed to penalize short-term farmers and reward long-term aligned community members. If someone claims their FMP early and forfeits a percentage of their FMP, that amount of FMP will be allocated to the dHEDGE treasury, which can be used for Protocol Owned Liquidity (POL), community grants, or future incentives for long-term aligned Flat Money users. **Example**: If you earn 100 FMP in March 2024 and unlock your FMP 6 months later, you will receive 50 unlocked FMP and 50 FMP will be forfeited to the treasury. If instead you unlocked your FMP after the full one-year vesting period has passed, you will unlock the full 100 FMP and will not forfeit any points. ### Future Utility for FMP In the future, people will be able to convert FMP into Flat Money’s native token. The native token will not be a governance token. Instead, it will be a utility token that you can stake. The staked token will be eligible to earn a percentage of trading fees, but a certain percentage of the total supply will need to be staked before the fee switch mechanism is activated. There will be more information about Flat Money’s native token in the future. ## Common Questions #### Does Flat Money have any VCs? Flat Money has no VCs and has not conducted any raises. The only way to earn FMP is to participate in the protocol or within our ecosystem. This applies to everyone, even the Flat Money team. #### What is the total Flat Money Points (FMP) supply? We’ve ensured that no more than 100m FMP will ever be minted. Currently, there’s \~50m FMP allocated to existing seasons and incentives programs with 20m additional FMP earmarked for future seasons and incentives that have yet to be announced. However, the total supply may be less than the total cap. We’ve instituted the cap so our users understand the limits of the program. #### Where can I see my current FMP allocation? If you’ve earned FMP, you can see your Points allocation and current vesting status in the Flat Money dApp on the [Points page](https://flat.money/points). #### I participated in the Early Depositor Vault on Toros Finance. Where can I see my FMP allocation for the Early Depositor Vault? If you contributed to the Flat Money Early Depositor Vault, [you can see your FMP allocation in the Toros Finance dApp](https://toros.finance/flat-money-early-depositor-vault). #### Can I claim a portion of my FMP and withdraw the rest later? When you claim your FMP, you are withdrawing your vested allocation and forfeit any remaining allocation that has yet to fully vest. You can see a notice in the dApp of how much FMP you will forfeit if you claim before the 12-month vesting period is complete. # Developer Resources ## Flat Money's Smart Contracts
ContractAddressDescription (if applicable)
FlatcoinVault0x95Fa1ddc9a78273f795e67AbE8f1Cd2Cd39831fFThis contract holds the rETH deposited into the Flat Money (UNIT) Market to mint UNIT and the rETH Perpetual Futures Market as margin collateral.
LeverageModule0xdB0Cd65dcc7fE07003cE1201f91E1F966fA95768This is the leverage position NFT address. You can see holders and transfers. Note: the 0x00 holding is the closed positions.
StableModule0xb95fB324b8A2fAF8ec4f76e3dF46C718402736e2The UNIT token contract.
DelayedOrder0x6D857e9D24a7566bB72a3FB0847A3E0e4E1c2879The contract users interact with to open orders.
OracleModule0xAba633927BD8622FBBDd35D291A914c2fDAaE1FfUsed to fetch the Pyth and Chainlink rETH pricing information.
LiquidationModule0x981a29dC987136d23dF5a0f67d86f428Fb40E8AaHandles leverage position liquidations.
PointsModule0x59525b9b23ADc475EF91d98dAe06B568BA574Ce5The Flat Money Points (FMP) contract.
LimitOrder0x3FC737910B83381FD8288fD6c6d33Dacdf05307BHandles leverage position limit close orders.
KeeperFee0xe68D0FE1dA19D07a9265BD3cE0EFc4BfFB5EC715Calculations for keeper fee estimates.
Viewer0x509b85EEF0df77992b29aeDdD22C7119Db87ce16Functions to support the frontend. Also includes the UNIT price.
*More information will be added in the near future!* # Flat Money Brand Kit The following page consists of Assets, guidelines and available usage of our content for public use. including partnerships and collaberations with Flat Money ### **Our Assets & Guidelines** Depending on the context, especially when the full name isn't explicitly mentioned, it may be preferable to utilize the full wordmark version of the logo for optimal clarity. Only use the typographic logo in tandem with the logo mark on the same visual.

However, for applications related to tokens and social media, a chromatic version of the logo mark is recommended, adding a vibrant touch to enhance visibility and engagement #### **3D Avatar PNG:**
#### **Flat Money Word Mark.SVG:** #### **Flatcoin Word Mark.SVG:** #### #### **Flatmoney Logo Mark.SVG** ![](/files/mJ3To4hyvxyHRXu6OWtn) #### **Flat Money Word Mark Black.SVG**
#### **Flatcoin Word Mark Black.SVG** ![](/files/j79wMZ48qn8xYW7A0t7v) #### **Flatcoin Logo Mark Black.SVG**
### Color Styles The logo mark and wordmark can be used in the black or white version on any color as long as there is sufficient contrast (minimum 3:1)
### Color Guides The brand palette is anchored in the simplicity of black and white, fostering a clean and minimalist aesthetic. These two foundational colors dominate the visual landscape, embodying clarity and timelessness. Introducing a touch of chromatic nuances infuses vibrancy and depth, elevating the overall visual experience.

#E5E5E5

#1C1C1C

#Chrome