# 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.

<figure><img src="/files/bBjKu2LchWxDv4iGBDH3" alt=""><figcaption></figcaption></figure>


---

# Agent Instructions: Querying This Documentation

If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question.

Perform an HTTP GET request on the current page URL with the `ask` query parameter:

```
GET https://docs.flat.money/the-flat-money-protocol.md?ask=<question>
```

The question should be specific, self-contained, and written in natural language.
The response will contain a direct answer to the question and relevant excerpts and sources from the documentation.

Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.