Kyan Features: What to Expect?

Premia has been around for about five years now. An entire market cycle. In that time, decentralized options have yet to be done right.

Exchanges, including ourselves and some of our favorite projects in the space, have struggled with pain points like capital inefficiencies, clunky blockchain UX, and poor trade execution.

Kyan (Premia V4) is a crypto derivatives exchange that supports options, perpetual futures, and customizable multi-leg strategies with portfolio margin. The feature-set of a CEX with the transparency of a DEX.

Kyan’s beta release with a CEX-tier feature-set is on the horizon. Before you keep reading, make sure to be the first to know about Kyan’s beta events and updates by signing up here.

Kyan Features: What to Expect?

TL;DR: Kyan is an orderbook-based crypto derivatives exchange offering portfolio margin and combo trades.

That’s just a high-level summary. Kyan is a new exchange built from the ground up with a clear vision of no more compromises. With it, our aim is to redefine decentralized derivatives trading with a performant and fully featured exchange built everyone.

Options remain at our forefront. With a heavily anticipated and ever so important portfolio margin system, Kyan is designed to fulfill the promise of DeFi options from Premia’s early days.

Kyan’s implementation is not just like any other portfolio margin. For users, Kyan’s liquidation engine is the most efficient in the market. Liquidations are not holistic, but gradual—more granular details on that in a future article.

Users can also expect a best-in-class UX with Kyan — the clunky DeFi experience from Premia’s previous iterations have been brought up to par with the ever-evolving industry standards, along with a seamless signup flow.

Now, let’s get started with an overview of Kyan’s main features, starting with the options orderbook.

Options and Orderbook Functionality

Even with all the new bells and whistles, options remain our priority for Kyan.

In addition to a swift and snappy options orderbook, we’ve implemented portfolio margin to combat capital inefficiencies, and perpetual futures to supplement the options exchange. Don’t worry though, perps traders will get some love following the mainnet launch later this summer.

Now, unlike Premia v3 which aggregated liquidity from multiple sources, all liquidity for both options and perpetual futures on Kyan will be sourced from a dedicated central orderbook.

Types of orders supported on Kyan will include:

• Market Limit: Executes at a specified price.

• Fill-Or-Kill (FOK): Completes entirely or not at all.

• Immediate-Or-Cancel (IOC): Allows partial fills.

• Request-For-Quote (RFQ): Ideal for larger orders beyond the orderbook's capacity.

It’s worth noting here that multi-leg strategies don’t require RFQ orders, as long as there’s liquidity available for each instrument. Now, let’s take a look at Kyan’s main features, starting with multi-legs.

Multi-leg Strategy Builder (Combo Trades)

Kyan aims to tackle centralized giants, which means our UX needs a big upgrade. We’ve implemented practical transaction bundling for Kyan. In practice, this means one-click trades, strategies, and automatic hedging.

With transaction bundling, we’re introducing a CEX-grade multi-leg strategy builder. Kyan’s strategy builder supports the deployment of any kind of multi-leg trade, like a butterfly or an iron condor, with just a few clicks.

Traders on Kyan can also utilize automatic hedging. Simply tick a box while purchasing options to offset risk with a perpetual future. All that (and more to come) enabled by transaction bundling and portfolio margin.

Build any combination of derivatives you can think of while enjoying the hedging properties unlocked by portfolio margin, soon on Kyan.

Portfolio Margin on Kyan

Portfolio margin is at the core of traders’ multi-leg trades, hedging strategies, and overall portfolio management on Kyan. Learn more about the differences between isolated margin and portfolio margin here.

Portfolio margin is a dynamic system used to compute the margin requirements for eligible positions by taking into account the entire portfolio instead of calculating the risk for each position separately. This approach is more capital-efficient, flexible, and allows traders to optimize their positions.

Kyan will launch with portfolio margin available by default for all accounts. We recognize isolated margin as another essential feature (specifically for perps traders), so we’re making it a priority on the Kyan development roadmap.

So, in practice, portfolio margin on Kyan evaluates risk across your portfolio as a whole. This results in:

1. More efficient use of capital

2. Recognition of hedged positions

3. Optimized margin requirements for multi-leg strategies

Account System on Kyan

When a user connects their wallet (EOA) to Kyan, a sub-account is automatically created for them, simplifying the onboarding process.

Think of sub-accounts as separate wallets inside of Kyan. They’re all controlled by the same EOA, but they’re completely independent in terms of risk and margin requirements. A user can create as many sub-accounts as they need. This flexibility allows traders to manage different strategies without overlap.

Every sub-account includes separate margin accounts for each asset, The risks for these accounts are entirely isolated from one another. Each margin account has its own margin requirements, ensuring that the risks in one portfolio do not affect the others. 

This structure enables traders to execute strategies with precision while maintaining full control over their capital allocation. In the future, we plan to utilize smart accounts on Kyan, similarly to our swap aggregator Archetype.

Learn more about Kyan’s sub-accounts and margin accounts here.

What Does Kyan Mean for Crypto Options?

Make sure you’re first in line for Kyan’s beta events and updates by signing up here.

​Kyan will be a significant upgrade for anyone trading decentralized derivatives.

If you have any questions about Kyan or portfolio margin, join our Discord or shoot us a message on X. We would love to know your thoughts!

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