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What is margin leverage?

Thread: The Dangers of Margin Lending

How does Button Zero use Uniswap v3

Button Zero uses Uniswap v3 like an order book.
Thread: Button Zero is not a liquidity pool, even though it routes through Uniswap v3

What security measures are taken to ensure the safety of user funds in Button Zero contracts?

We are audited and have strong peer reviews. We have a bounty program (up to $500K) on Immunefi, which covers our contracts and rewards people for discovering exploits.

Why is the interest rate for selling bonds shown as a range, not a fixed amount?

The range accounts for the slippage users incur with an increase in size. Lower liquidity can result in wider ranges and greater slippage. To avoid slippage, users can place 'Ask' Orders.

How do you place orders on Button Zero?

Users can place bid/ask (limit) orders by depositing liquidity at a certain price.

How would Bitcoin and Ethereum work as collateral options and are they also going to be rebasing?

Yes, we created a rebasing wrapper for non-rebasing assets like ETH & BTC that have robust oracles for them to rebase to a dollar. It simplifies a number of issues.

How do you calculate the Discount rate? Interest rate? What is the difference between the discount rate and the interest rate?

Discount Rate = (Face Value - Purchase Price) * 100
Discount on Button Zero = ($1.00 - Purchase Price)
Yield (%) = (Face Value - Purchase Price) / (Purchase Price) * 100
Yield on Button Zero (%) = ($1.00 - Purchase Price) / Purchase Price

How is the collateralization calculated? Why does it differ across tranches?

The collateralization (%) changes based on the price movements of the collateral asset backing that tranche. It is higher for A-Tranche tokens than B-Tranche tokens because the A-Tranche is paid out first.

What does it mean for collateralization to be at least 100% at maturity?

The collateralization (%) only matters upon maturity of the bond, as it determines how much each tranche token can be redeemed for. If it is above 100% upon maturity, tokens for that tranche (A,B) are worth $1.00.