Trading Credits

Trading credits are non-withdrawable margin that allows traders to increase their buying power and start risk-free trading after principal loss. Trading credits are awarded based on deposit and volume milestones as well as to new traders to experience the platform. Realized profits generated from trading credits may be withdrawn like regular funds.

Mechanics

VDEX is unique among perpetual exchanges by supporting trading credits. This is because attackers can create multiple accounts and extract risk-free profit without KYC or identity-level controls. To support trading credits at all, the VDEX design must differ from centralized exchanges.

First, in the event of losses, user equity is deducted before credits. This prevents one attacker from using two accounts to create opposite positions and secure risk-free profit.

Second, if an account holds trading credits and has made no net deposits during the profit-generating period, profit withdrawals are capped at 50% of the trading credit balance. Once this limit is reached, all remaining trading credits and any associated profits will expire and be reset to zero. This only affects traders who were given credits to test the platform—and therefore should not be able to earn uncapped gains—and does not impact real, active traders who received credits as a deposit matching bonus.

Third, trades made using trading credits only are not eligible for referral rewards. This prevents risk-free revenue share collection.

Trading credits expire after 30 days of inactivity.

VDEX reserves the right, at its sole discretion, to revoke trading credits if any unusual, suspicious, or abusive activity is detected.

Frequently Asked Questions

FAQs

1. Are trading credits withdrawable?

No. Trading credits are non-withdrawable and can only be used as margin for trading.

2. Are profits generated using trading credits withdrawable?

Yes. All realized profits are fully withdrawable.

Even if trading credits were previously drawn down, any funds recovered after the drawdown may still be withdrawn.

3. If I withdraw my principal, will trading credits remain in my account?

No. Under the deposit matching program, trading credits are revoked once a principal withdrawal is requested.

4. In the event of losses, which balance is deducted first?

Deposited funds (cash balance) are deducted first. Trading credits are only used after user equity is exhausted.

5. When are trading credits revoked?

Trading credits are revoked immediately when a withdrawal request for principal funds is submitted.

6. Can I deposit $200 / $500 in multiple transactions in deposit matching program?

Yes. Trading credits are issued once your total cumulative deposits reach the required threshold.

7. If I lose my deposited funds due to trading losses, will my trading credits be revoked?

No. Trading credits remain active even if deposited funds are fully lost.

8. If I lose both my deposits and trading credits, and deposit again later, do I need to repay the trading credits?

No. Trading credits do not create debt and do not need to be repaid.

9. If I lose trading credits and later earn referral rewards, do I need to repay the trading credits?

No. Referral rewards do not offset or repay previously used trading credits.

10. Do trading credits expire?

Yes. Trading credits expire after 30 days of inactivity and may be revoked if unusual activity is detected, profits exceed the issued credit amount, or a principal withdrawal is requested under the deposit matching program.