NOLOYOLO: A No-loss Trading Protocol
August 1st, 2022

Molly Wintermute

NOLOYOLO is a no-loss trading protocol.

You can trade ETH (long or short) with up to 8x leverage and make profits on every trade. This is achieved by automatically protecting your active trades with hedge contracts. You can think of it as loss protection whereby you can always earn profits on your trades instead of suffering losses (if the stop-loss is triggered).

Example: you are long ETH and the price is going up. You see unrealized gains on your position and can take profits. If you close the position, you will pay a share of the P&L for your no-loss trade.

If the price is going down, your position will be automatically closed at a stop-loss you set and you will receive a fixed no-loss payout, on a position that would otherwise be in loss.

If you are right with the direction of your trade, your upside is unlimited and you pay a share of the P&L when you take profits.

If you are wrong, your upside is fixed, and your position is automatically closed with a fixed payout at a certain stop-loss level.

You can choose the share of P&L to pay (when taking profits) & the no-loss payout (when a stop-loss is triggered) for each trade you make.

You can take profits at any moment during the holding period. The stop-loss can only be automatically triggered.

The no-loss payout paid out when a trade is closed with a stop-loss is 100% collateralized on-chain. When you open a no-loss trade, the amount that could be paid out to you if the stop-loss is triggered is locked as collateral for your particular position. This payout is guaranteed and automatically settled by the smart contract.

You have a limited number of no-loss trades per month. At launch, you can trade two no-loss longs and two no-loss shorts with a maximum holding period of 30 days.

The maximum size (margin) for a long or short position is 1 ETH. With a maximum available leverage of 8x, the maximum position size is 8 ETH. If you closed your active position with profits, you can open another trade of the same type with the same holding period.

For example, if you close your ETH long position and take profits, you will be able to trade another ETH long with the same maximum period of 30 days.

There are no upfront fees to be paid for the no-loss trades, but the standard long/short position fee.

To open a trade, you need to provide a margin for holding your position and pay a fixed open/close 0.1% fee of the position size. There is also a borrowing fee for holding a leveraged position that will be accumulated over the entire period and is settled out of the margin you provide when you close the trade. The borrowing fee is 0.001% per hour for the leverage you use.

For example, if you open a 1 ETH long with 2x leverage (with a total position size of 2 ETH), you will need to provide 1 ETH as margin and pay 0.002 ETH to open the position, plus a borrowing fee for the leverage used.

The protocol is built on Ethereum (Arbitrum layer-2). No-loss trading experience is fully on-chain, trustless, and KYC-less. You only need a MetaMask wallet to interact with smart contracts with no counter-parties or centralized agents involved. Trading on Arbitrum L2 makes the transaction fees very low for no-loss trading.

NOLOYOLO is invite-only at the moment.

NOLOYOLO: No-Loss Trading

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