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Liquidity/Market sleeves

FOREVER MARKETS

Market sleeves

Global liquidity UX with enforceable isolation for every market allocation.

2 min readUpdated Aug 27, 2026Capped beta

Why sleeves exist

A single unrestricted pool would let one bad oracle or thin market expose every LP dollar. Forever instead allocates global capital into registered sleeves. Each USDG is either idle or assigned to exactly one market.

Users still receive one share and one withdrawal experience. Underneath, every sleeve has its own absolute cap, maximum portfolio weight, utilization ceiling, drawdown breaker, oracle freshness rule and first-loss requirement.

Capital waterfall

  1. 01
    Matched positions net first

    CLOB pairs and complete sets do not require directional LP capital while fully matched.

  2. 02
    Trader margin

    The losing trader’s collateral absorbs loss.

  3. 03
    Opposing OI and funding

    Directional exposures and carrying flows offset each other.

  4. 04
    First-loss capital

    Protocol or market-creator bond recapitalizes realized sleeve loss.

  5. 05
    Global LP allocation

    Only residual loss reaches the capped global allocation.

Community support does not control allocation

Market-seeding deposits mint the same global vault shares and record cumulative support for a proposed market. They do not earmark those shares, force capital into the proposal or relax any risk limit.