1. Launch
A creator launches on pump.fun from their own wallet through the pad and signs two transactions: the pump.fun create (with an optional dev buy) and the fee-sharing setup with a vault seed of 0.5 to 10 SOL. Creator fees are split on chain: 60% to the coin's perp vault, 30% to the creator, 10% to FUNDED. The split is verified before the market goes live.
2. The perp vault
Each coin has its own perp vault, a wallet held by the FUNDED keeper. Its LP capital is the seed, the 60% creator-fee share (cranked in every few minutes), 30% of trading fees and SOL from outside LPs. It is the counterparty to every position, and every cap is measured against it: 2% of the vault per position, 25% per side, 10% net skew.
3. Trade
Pick long or short, a margin and a leverage from 1x to 3x. The quote shows your size, the 0.10% open fee and your estimated liquidation price, and holds for 60 seconds. You sign one SOL transfer of margin plus fee into the vault. The server verifies it on chain and opens you at the fresh mark, or refunds the whole deposit if the mark moved more than 1% against you or a cap no longer fits.
Close any time: the vault pays your equity (margin plus PnL plus funding) minus the 0.10% close fee in SOL. Every position has a receipt with its transactions and a share card.
4. The mark price
All PnL, funding and liquidations use the mark, never the last trade. The keeper samples spot (the bonding curve, or the PumpSwap pool once the coin graduated) every 15 seconds. Each sample is clamped to within 3% of the previous one, and the mark is the time-weighted average over 5 minutes. If spot and the mark drift more than 15% apart, opens pause until they are back within 5%.
5. Funding, liquidation, ADL
Every hour the crowded side pays funding: rate = skew / vault liquidity x 1%, at most 0.10% per hour. 90% is split between spot holders who held through the hour (pro-rata, min bag 0.01% of supply) and sent automatically in SOL; 10% stays in the vault. A position is liquidated at 10% maintenance margin; the rest of its equity goes to the insurance fund. Profit per position is capped at 300% of margin, and if open profit passes 40% of the vault the most profitable positions are closed first until it is under 30%.
6. Fees, buyback and burn
Fees are 0.10% on open and close plus 10% of funding. Half buys back the coin on its curve or pool and burns exactly what it bought; 30% goes to the perp vault; 20% to FUNDED. Every buyback and burn carries its memo on chain.
Custody and caps
Each vault's key is encrypted at rest (AES-256-GCM) and opened only for one signature at a time. Every transaction the keeper signs passes a guard: a program allowlist per transaction type, exact transfers and memos, lamport caps, per-payout and daily keeper caps, and an execution switch (auto, review or off). The operator can make all markets or one market reduce-only, or freeze trading entirely.
Payouts, buybacks and burns are idempotent: each is recorded before it is sent and the chain is checked for its memo before any resend, so nothing is paid twice. Deposits a trader never reported are found by their memo on the vault's history.
Eligibility
Not available to US persons or in sanctioned and restricted regions. Every wallet confirms an attestation once before its first trade. Full text and list on the rules page.
FAQ
Who is on the other side of my trade?
The coin's perp vault. There is no order book: every long and every short trades against the vault. It is seeded by the creator at launch, filled by 60% of the coin's creator fees and by LPs who add SOL. When traders win the vault pays, when they lose it keeps the margin.
Why can't I open a bigger position?
Caps grow with the vault: one position can be at most 2% of vault liquidity, each side at most 25%, and the long and short sides may differ by at most 10%. A young market has a small vault, so its caps are small. The order panel shows the largest size that fits right now.
Can one big buy or sell liquidate me?
Not by itself. PnL and liquidations use the mark, a 5 minute time-weighted average of spot where each 15 second sample can move at most 3% from the one before. A one-block wick barely moves it. A real, sustained move does reach the mark.
What does guarded mean?
Spot and the mark are more than 15% apart, usually right after a sharp move. New opens pause until they are back within 5%, so nobody can open at a stale mark. Closing still works.
What happens at liquidation?
When your equity falls to 10% of your position size the keeper closes the position at the mark. You lose your whole margin; what is left goes to the coin's insurance fund.
Why was my position closed in profit?
Either it reached the profit cap (300% of margin) or the vault was stretched and ADL closed the most profitable positions first. Both pay you your equity minus the close fee, like a normal close.
How does funding work?
Every hour the crowded side (the side with more open interest) pays up to 0.10% of its size per hour, in proportion to the skew. The lighter side receives nothing: 90% goes to the coin's spot holders, 10% stays in the perp vault. Funding accrues on the paying position and settles when it closes.
Who counts as a holder?
Any wallet that held at least 0.01% of the supply through a full hour: its weight is the smaller of its bag at the start and at the end of the hour. The creator, the bonding curve, the pool, the perp vault and the treasury never count.
Do I need to claim?
No. Every hour the keeper sends SOL to each wallet whose unpaid credits reached 0.001 SOL, in batches with the memo funded:v1:holder. Smaller amounts carry over and never expire.
Is holder funding a yield?
No. It only exists while traders keep one side crowded, it changes every hour and it can be zero. Nothing here is a promise of income.
Where do trading fees go?
0.10% on open and on close. Half buys back the coin and burns it, 30% goes to the perp vault, 20% to FUNDED.
Is LP safe?
No. LPs are the counterparty: when traders win, LPs lose. Vault pages show fees earned historically and the NAV history, never a forecast. Withdrawals wait 24 hours and pay only from free liquidity.
Why can't I trade from my country?
FUNDED does not offer perpetual futures to US persons or in sanctioned and restricted regions. From those regions opening and adding LP are disabled; closing and withdrawing always work.
Perpetual futures are high risk. You can lose your entire margin. Memecoins can go to zero. Nothing here is financial advice. Not affiliated with pump.fun or Hyperliquid.