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Zarnu is a 100% transparent CEX, whose solvency is enforced by its users, through a new and innovative way of doing proof of reserves.
Zarnu's users can verify Zarnu's solvency without trusting Zarnu, and without trusting an auditor.
Wallet activity related to Zarnu is publicly disclosed, and can be verified on-chain.
Just like open source code, Zarnu's security relies on the collective due diligence of its users.
Central to Zarnu's proof of reserves is the concept of treating an exchange like a closed system. Money comes in through deposits. Money goes out through withdrawals. All deposit and withdrawal activity is on-chain, and can be verified by anyone.
Zarnu publicly discloses all of its on-chain activity (deposits, withdrawals and wallets).
Users collectively verify the validity of the disclosure by comparing it with their own data and the data available on-chain.
Deposits and withdrawals are aggregated in a way that allows one to calculate Zarnu's net liabilities.
Zarnu's net liabilities is compared against Zarnu's wallet balance, allowing anyone to determine whether Zarnu is solvent or not.
Platform statistics for the previous 24 hours.
Zarnu features the world's first independently verifiable and real-time proof of reserves. Users can verify in real-time, that Zarnu is solvent, and that it holds the funds that it claims to hold. The verification can be done in a completely independent manner, without relying on an external auditor, and without trusting Zarnu.
This ensures that customer funds never leave their designated cold wallets, and provides complete transparency into the wallet structure of Zarnu.
If FTX would have had a similar proof of reserves from its beginning, users would have quickly discovered the fraud of their CEO - and left the platform for good.
A Merkle Tree proof of reserves can easily be gamed by the exchange. To do so, the exchange simply borrows funds from a different exchange, prior to recording the proof, and returns the funds once the proof is done. By making the proof real-time, Zarnu is no longer able to game the system.
Zarnu's solvency is effectively enforced by its users, who work together to verify that 1) the on-chain data disclosed by Zarnu is sound and valid, 2) none of their deposits and withdrawals have been fraudulently excluded from Zarnu's proof of reserves.
If a user discovers that one of his deposits or withdrawals is missing from the proof of reserves, he will be able to quickly alert other users through social media. This discourages Zarnu from engaging in any kind of reporting fraud, as doing so would quickly be discovered by its users, and make them lose trust in the exchange.
The more users that trade on Zarnu, the harder it becomes for Zarnu to get away with reporting fraud, and the lower the chance of Zarnu being secretly insolvent. In that sense, the solvency of Zarnu is not that much different from the security of open source code - the more people that regularly use and audit the open source code, the lower the chance of the open source code containing malware, and the more secure it becomes.
There are 6 ways that Zarnu could possibly manipulate its proof of reserves:
Zarnu's users are collectively incentivized, through their asset exposure to Zarnu, to verify Zarnu's proof, and ensure that it is valid. Just as investors in a company are collectively incentivized to verify that the company's financials are sound.
Like with open source software, Zarnu becomes more secure, the more users it gets.
While it is possible for open source software with thousands of users to have malware, the probability of having it is quite low. The same is true for Zarnu - while it is possible for Zarnu's proof to be invalid, the probability of it being invalid (and Zarnu being secretly insolvent) is quite low, and becomes even lower, the more users it gets.
Zarnu includes all of its wallets in the wallet section of its proof of reserves.
If a wallet is not represented there, it's safe to assume that it's not a Zarnu-controlled wallet.
If the wallet is represented there, you can click on the wallet. This will allow you to check the transactions of the wallet on the block explorer. If the transactions there are not included in the proof of reserves, it's possibly that the wallet is not a Zarnu-controlled wallet, and that Zarnu has fraudulently included the wallet in its proof of reserves. In that case, the proof of reserves is invalid, and you should alert other users immediately.
The numbers on Zarnu's proof of reserves can be independently verified and do not require trusting Zarnu.
You can add together all of the deposits and withdrawals listed there (double-checking their values on the blockchain for complete assurance) and figure out whether the numbers are real or not.
In practice, adding thousands of transactions together can be a bit cumbersome. That's why our frontend does it for you.
If you don't trust the code of our frontend, you can extract all of the transactions through our API, and run them through an open source script. The script will quickly reveal if the numbers on the proof of reserves are real or not. If you also don't trust the transaction values returned by our API, you can look up the individual transactions on the blockchain, and verify their values yourself.
Demo accounts do not require any personal information.
Live accounts require a valid email address. You may, optionally, set a password as well. If you choose not to set a password, your email address will be used to validate your logins.
For a demo account, nothing.
For a real account, you will need one of the following stablecoins:
The stablecoin can be on any of the following networks/blockchains:
- Ethereum ERC20
- BSC BEP20
Minimum deposit: 0.1 USD.
Minimum withdrawal: 1 USD.
Immediately upon signing up, you will receive your own personal deposit address. You can fund your Zarnu account by sending stablecoins (USDC,BUSD,USDT,DAI) to this address. Zarnu supports a variety of stablecoins and networks.
Yes. Zarnu is also available as an Android app. Download it here.
On iOS, Zarnu is available as a Progressive Web App (PWA). A PWA is a relatively new type of app that does not require any downloads or installation - you simply add it to your phone. Instructions on how to add it to your phone can be found here.
Zarnu does not currently support fiat. However, we expect to add support for fiat in Q1 2023.
Despite not supporting fiat, it is still possible to fund a Zarnu account with a credit card or bank transfer. You simply buy crypto from one of our partners - and they will transfer the crypto directly to your Zarnu account.
A hybrid order book is a combination of the classic order book that you know from traditional crypto exchanges, and the DOM (Depth of Market).
The DOM is generally superior to the classic order books, when it comes to scalping and daytrading, as you can click yourself in and out of trades, and visualize your orders in real-time, as the price moves up and down. However, it often comes at the cost of being too bulky, and taking away too much focus from other important UI elements (such as the tape and the chart). On Zarnu, we have solved this by integrating the DOM with the order book, providing you with a clean and minimal order book, as you know it from Binance or Coinbase, and adding a ton of DOM-related features (such as point-and-click trading and order visualization).
Blitz Mode is a special trading mode (for pro's only) that enables you to get in and out of trades in a minimal amount of clicks.
While Blitz Mode is activated, you can submit orders with a single tap on the order book, or two taps on the chart. The order quantity is selected in advance, using a slider.
It's very easy to make mistakes, while Blitz Mode is enabled, which is why we do not recommend it for newbies.
Zarnu's Tradingview charts are fully interactive.
This means that you can submit new orders, close positions and place stop losses or take profits directy from the chart.
To do so, simply right click on the chart, and select Limit Order (to place a new order), Trigger Order (to place a stop loss or take profit) or Close Position (to close your position). If you have Blitz Mode enabled, the action will be executed immediately (taking into account your selected buy or sell quantity) - if not, you will be prompted for confirmation.
Note: Interactive charts are only available on desktop.
Zarnu theoretically supports leverage up to 100x on all futures markets. However, most of our traders tend to use a much more conservative amount of leverage - generally ranging between 5x and 10x.
Zarnu can calculate your stop loss for you, and add it to your position automatically.
In doing so, it will take into account your current timeframe (lower timeframes will yield tighter stops - and vice versa), your profit or loss target (target number of pips, configurable in the order settings) and your risk reward ratio (also configurable in the order settings). Upon reviewing these details, it will calculate the price for the stop loss, and submit it to the matching engine. Similar functionality is also available for take profits.
To configure your order quantity, use the quantity sliders (available in the trading interface, just below the order quantity input field).
If the slider is set to 10%, the quantity of new orders submitted during Blitz Mode will automatically be scaled to match 10% of your available funds.
Note: There are four quantity sliders in total: One for market buy orders, one for market sell orders, one for limit buy orders and one for limit sell orders. All four of them will need to be configured separately (it is not possible to combine them into one).
Yes. Zarnu provides a fully-fledged demo environment (the Zarnu Testnet).
You can use this demo environment to get familiar with Zarnu, before making a deposit, and engaging in live trading.
Access the Zarnu Testnet here.
For long positions, the profit/loss (P/L) is calculated as follows:
P/L (Long) = (Exit Price - Entry Price) * Position Size
For short positions, the profit/loss (P/L) is calculated as follows:
P/L (Short) = (Entry Price - Exit Price) * Position Size
The Entry Price of your position is calculated by taking the volume weighted average fill price (VWAP fill price) of the orders that increased the size of your position. The formula is as follows:
Entry Price = Position Size / ((Qty_1/Price_1)+(Qty_2/Price_2)...+(Qty_n/Price_n))
where Qty_n is the quantity of your n'th order and Price_n is the price of your n'th order.
If you are long, only buy orders contribute to your Average Entry Price. Sell orders can be ignored in this case.
If you are short, only sell orders contribute to your Average Entry Price. Buy orders can be ignored in this case.
You place an order to go long $20,000 worth of BTC at a price of 10,000. Your order gets filled, and a new long position is opened.
The Average Entry Price of this position is now:
(Position Size / (Qty_1/Price_1)) = (20,000/(20,000/10,000)) = 10,000.
You then place another order to go long $40,000 at a price of 12,000. The Average Entry Price is now:
(Position Size / (Qty_1/Price_1)+(Qty_2/Price_2)) = (60,000/(20,000/10,000)+(40,000/12,000)) = 11,250.
The futures contracts available on Zarnu are all perpetual. They never expire, and there is no settlement. You can keep your position for as long as you want. A mechanism called Funding keeps the price of the contract aligned to the spot price of the underlying asset.
Vanilla futures (futures with expiries) are not currently supported, but will be added in a future update.
Funding is an hourly exchange of money between longs and shorts. The purpose of this exchange is to keep the price of the contract aligned with the spot price of the underlying. The amount exchanged is determined by the Funding Rate. If the Funding Rate is positive, the contract is trading at a premium to spot, and longs pay shorts. If the Funding Rate is negative, the contract is trading at a discount to spot, and shorts pay longs.
The Funding Rate determines the amount to be exchanged between longs and shorts during each funding period. If the Funding Rate is 0.1% at the end of a funding period, longs pay 0.1% of their position size to shorts. If the Funding Rate is -0.1%, shorts pay 0.1% of their position size to longs.
Funding slightly changes the payoff matrix of market participants in the futures market. If the Funding Rate is significantly positive for a sustained amount of time (as seen during the peak of bull runs), shorts may end up being profitable in spite of the price of Bitcoin going up. The trading P&L on long positions would need to appreciate by an amount equal to the total amount of funding paid in order for longs to break even in this scenario. A funding rate that is far away from zero opens up unique arbitrage opportunities, such as Spot Futures Arbitrage and Cross Exchange Funding Arbitrage.
The Mark Price is a manipulation-resistant price that Zarnu uses in order to minimize the impact of market manipulation and prevent unnecessary liquidations.
The Index Price is an average of a collection of prices from the top 10 spot exchanges:
The pricing data used for the calculation of the Zarnu Index Price, and the Zarnu Mark Price, is derived from ten of the world's top spot exchanges. The data is fully transparent, and can be seen in real-time here.
The formulas used for the calculation of the Zarnu Mark Price and Zarnu Index Price can be found in our References.
Zarnu accounts can be secured with Two Factor Authentication (2FA), withdrawal limits, IP pinning and device whitelisting. For the best security, we recommend that you enable TOTP-based Two Factor Authentication, add a withdrawal limit and only whitelist your own trusted devices.
You should also ensure that the access to your email address is properly locked down with a strong password and Two Factor Authentication.
Zarnu does not charge any fees on liquidations. If your position is liquidated, it will be closed out incrementally, until your Maintenance Margin satisfies the Minimum Maintenance Margin requirements for the contract you are trading. In the vast majority of liquidations, only 10% of your position size will need to be closed out. Once this is done, your position exits liquidation. Note: Incremental liquidation is not available for positions that are below 0.01 BTC in size. Positions that are below 0.01 BTC in size are liquidated in full, at their bankrupcty price.
Zarnu automatically converts stablecoin deposits (USDC, USDT, BUSD, DAI) into USD at time of deposit. At time of withdrawal, the USD is converted back to stablecoin.
This frees the user from any stablecoin-related risks while he is trading on Zarnu.
Zarnu currently supports the following networks/blockchains:
- Binance Smart Chain (BSC)
Zarnu currently supports the following stablecoins:
- USD Coin (USDC)
- Tether (USDT)
- Binance USD (BUSD)
- Multi-collateral DAI (DAI)