Margin Account

Margin Accounts are the on-chain smart contracts that serve as the central hub for all lending and trading activities within the Arkis ecosystem. They not only secure loans with collateral from Asset Managers but also function as an account abstraction for seamless interaction with DeFi protocols.

Key Features

• On-Chain Transparency and Security

  • Smart Contract-Based: Margin Accounts are deployed as smart contracts, ensuring that all loan-related activities are executed on-chain and are fully transparent.

  • Collateral-Secured Loans: Loans provided to Asset Managers are secured by collateral deposited into the Margin Account, protecting the liquidity pool’s capital.

• Account Abstraction for Trading

  • Unified Trading Interface: Margin Accounts act as a single point of access where Asset Managers can conduct multiple types of whitelisted operations, including:

    • DeFi Trading: Execute trades on approved DeFi protocols.

    • Yield Farming: Participate in yield farming strategies.

    • Hedging Strategies: Utilize the borrowed assets for risk management.

  • Native UI with Wallet Connect: Asset Managers can use Wallet Connect to access their Margin Account via a native user interface, ensuring a smooth trading experience on whitelisted venues.

• Whitelisting and Compliance

  • Protocol & Asset Restrictions: Only interactions with whitelisted protocols and within approved asset pools are permitted. This ensures that all operations conform to predefined risk profiles and liquidity parameters.

  • Dynamic Collateral and Asset Management: Margin Accounts hold both collateral and borrowed assets, enabling Asset Managers to seamlessly manage their portfolio under strict whitelisting rules.

• Portfolio-Level Margining

  • Arkis Margin Engine Integration: The Margin Engine continuously analyzes all assets across the Margin Account and applies portfolio margin calculations. This approach optimizes capital efficiency while maintaining robust risk controls across the entire portfolio.

• Undercollateralised for Asset Manager, Overcollateralised for Lender

  • As both collateral and borrowed assets stay within the Margin Account, for the Asset Manager, it is an undercollateralised loan (their buying power is bigger than the collateral value). At the same time, for the Lender, it is an overcollateralised loan as the total value of assets inside the controlled environment is bigger than the borrowed amount.