> ## Documentation Index
> Fetch the complete documentation index at: https://docs.ondoperps.xyz/llms.txt
> Use this file to discover all available pages before exploring further.

# Pre-IPO Markets

## Overview

Pre-IPO perpetuals are derivative contracts settled in USDC that support long and short exposure to a private company’s market-implied value before a potential public listing. They enable price discovery before a public share price exists. Positions confer no share ownership or IPO allocation. A listing is not guaranteed.

## Private Markets assets and pre-IPO perpetuals

Private Markets assets are tokenized notes traded as fully funded spot assets, without leverage or perpetual funding. Pre-IPO perpetuals are margined derivatives with long and short exposure and funding payments. Neither provides direct share ownership; their prices and terms can differ.

## Contract units

OPENAI-USD.P uses a fixed reference count of 1 billion shares to define its contract units. This is a unit convention, not an estimate of OpenAI’s actual outstanding shares.

```text theme={null}
Implied equity valuation = mark price × 1,000,000,000.
```

A mark price of \$1,000 therefore implies a \$1 trillion equity valuation. The reference count does not confer ownership rights, and the contract price need not match the price of an OpenAI share in a private transaction or eventual public listing.

## Price discovery

Before public listing, pre-IPO perpetuals use the same internal price-discovery mechanism described in [Weekend and Extended Hours Trading](/weekend-trading). Prices are derived from activity in the Ondo Perps order book. For pre-IPO markets, this mechanism runs continuously from the market’s initial reference price until external pricing is enabled under the [IPO transition rules](/pre-ipo-markets#ipo-transition).

Discovery bands, oracle triggers and permitted resets are market-specific; see [Pre-IPO Market Specifications](/pre-ipo-markets#pre-ipo-market-specifications). The [shared pricing documentation](/weekend-trading) explains the order-book impact mechanism, smoothing and mark calculation. Pre-IPO discovery bounds, resets and boundary behavior are described below.

### Discovery bounds and resets

For pre-IPO markets, discovery bounds constrain the mark within a percentage range around a reference price. The initial reference is the seed price set for that market. Band widths, trigger thresholds and permitted re-anchors are market-specific; see [Pre-IPO Market Specifications](/pre-ipo-markets#pre-ipo-market-specifications).

When the internal oracle reaches the configured trigger, the reference moves to the corresponding boundary and a new band is established, provided a reset remains in that direction. The trigger is measured as a percentage of the distance from the reference to the boundary.

Reset allowances are counted separately for upward and downward movement. Each re-anchor uses one reset in its direction. Reversing direction does not restore used resets, and resets do not replenish on a daily schedule. Resets do not change positions or entry prices, settle P\&L, or reset the oracle.

The mark is clamped to the active band and may remain at a boundary while the internal oracle continues to adjust. Touching a boundary does not itself trigger a re-anchor or halt the market. Ordinary buy orders above the upper bound and sell orders below the lower bound are restricted; other order-price protections also apply. Liquidation orders are handled separately from this ordinary order-price check. A discovery band does not guarantee that every order can execute.

After a direction’s re-anchor allowance is exhausted, no further automatic re-anchor occurs in that direction. The active band continues to constrain the mark until an allowed opposite-direction re-anchor, a permitted configuration change or the return to external pricing changes it. Positions remain subject to cross-margin requirements, liquidation and ADL. Discovery bounds do not guarantee a maximum account loss or protect other positions in the same account.

When external pricing is enabled under the [IPO transition rules](/pre-ipo-markets#ipo-transition), discovery-band state and re-anchor counters reset. Normal mark-price controls continue as pricing adjusts to the external feed.

## Trading parameters and risk

OPENAI-USD.P has a maximum leverage of 3×. Positions use cross margin and settle in USDC. Trading fees and funding payments apply. Margin requirements, order limits and price and quantity increments are market-specific. See [Pre-IPO Market Specifications](/pre-ipo-markets#pre-ipo-market-specifications) for contract parameters.

Leverage increases liquidation risk, and limited liquidity can make positions difficult to close. Cross-margin losses can affect other positions in the same account. Trading restrictions and ADL may apply. See [Leverage](/leverage), [Funding rates](/funding-rates), [Fees](/fees), [Liquidations and Insurance](/def), and [Auto-Deleveraging](/auto-deleveraging).

## Funding

OPENAI applies a funding multiplier of 0.005, compared with 0.5 for standard equity perpetuals. Funding is paid hourly and can be positive or negative. This reduces funding during pre-IPO price discovery, when no public share price is available.

## Open-interest cap

OPENAI has a market-wide open-interest cap of 5,937.5 contract units, equivalent to \$9.5 million at the \$1,600 seed price. Its dollar value changes with the market price. The cap is separate from any per-account position limit. When the cap is reached, ordinary market and limit orders are rejected at submission, including closing orders that are not marked reduce-only.

Reduce-only, post-only and supported stop orders are exempt from this cap check but remain subject to other trading rules. Existing resting orders may still fill, so open interest can exceed the cap. Use reduce-only when closing a position to avoid rejection by this cap check.

## IPO transition

Following a public listing, Ondo Perps may transition the market to a standard equity perpetual once it determines that public-market data can reliably support mark-price calculation and the contract units are consistent with the listed share. The transition does not occur automatically on the listing date or first public trade.

Once external pricing is enabled, the external oracle replaces the internal oracle on the next pricing update. The mark continues to use the standard mark-price calculation, including premium/discount smoothing and per-update movement limits. It is not forced to equal the external share price at the switch, and there is no fixed convergence period.

Switching from internal to external pricing can cause a sudden change in the mark price and immediate liquidations. Price smoothing and movement limits do not eliminate this risk.

Existing positions remain open in the same market, with unchanged quantities and entry prices. The pricing-source switch does not settle P\&L. Margin and liquidation rules remain active.

## Contract-unit adjustments

Ondo Perps may adjust the contract’s reference share count to align its units with the publicly listed shares. Trading pauses during the adjustment; the timing and expected duration are announced in advance.

Position quantities and price units are adjusted proportionally to preserve exposure and total account equity at the adjustment reference price, subject to rounding. If positions are settled as part of the adjustment, they are automatically reinstated at adjusted quantities in the same accounts and directions. Market-price changes can still cause gains or losses.

All open orders, including take-profit and stop-loss orders, are cancelled and are not automatically reinstated. Users must place new orders when order entry resumes.

## IPO failure and market closure

An IPO delay or cancellation does not itself define a settlement price. If Ondo Perps removes a pre-IPO contract from trading, it announces the settlement timing and price-calculation methodology before settlement. Outstanding orders are cancelled, remaining positions are settled at the announced price, and the market closes. A trading halt may precede the settlement announcement.

## Pre-IPO Market Specifications

### OPENAI-USD.P

| Parameter | Value |
| - | - |
| Market type | Pre-IPO perpetual |
| Settlement currency | USDC |
| Margin mode | Cross margin |
| Fixed reference share count | 1,000,000,000 |
| Initial reference price | \$1,600 |
| Maximum leverage | 3× |
| Initial margin rate at maximum leverage | 33.33% |
| Maintenance margin rate | 16.67% |
| Position bracket | \$1,000,000 |
| Default maximum position quantity | 625 contract units |
| Market-wide open-interest cap | 5,937.5 contract units (\$9.5 million at the seed price) |
| Price increment | 0.1 USDC |
| Quantity increment | 0.001 contract units |
| Discovery band | ±20% around the current reference price |
| Re-anchor trigger | 90% of the distance from the reference to the boundary |
| Discovery range resets | 4 upward and 4 downward |
| Internal oracle time constant | 1,800 seconds (30 minutes) |
| Maximum mark movement per update | 100 basis points (1%) |
| Funding interval | Hourly |
| Funding multiplier | 0.005 |
| Funding rate cap | ±1% per hourly interval, applied after the multiplier |

The position bracket, default maximum position quantity and market-wide open-interest cap are separate parameters. Account-specific position limits may differ. The dollar value of a quantity-based limit changes with price. A quantity increment specifies the permitted step size; it does not by itself specify a minimum order notional.


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