# Table of Contents - [New to Exponent? Start here - Exponent](#new-to-exponent-start-here-exponent) - [Farm - Exponent](#farm-exponent) - [Income - Exponent](#income-exponent) - [Disclaimer - Exponent](#disclaimer-exponent) - [Privacy Policy - Exponent](#privacy-policy-exponent) - [Audits - Exponent](#audits-exponent) - [Terms of Use - Exponent](#terms-of-use-exponent) - [Bug Bounty - Exponent](#bug-bounty-exponent) - [Standard for Solana Yields - Exponent](#standard-for-solana-yields-exponent) - [Liquidity - Exponent](#liquidity-exponent) - [Exponent Yield Stripping - Exponent](#exponent-yield-stripping-exponent) - [Deployed Programs - Exponent](#deployed-programs-exponent) - [Security Practices - Exponent](#security-practices-exponent) - [Careers - Exponent](#careers-exponent) - [Time-Dynamic AMM - Exponent](#time-dynamic-amm-exponent) - [Protocol Fees - Exponent](#protocol-fees-exponent) - [Risks - Exponent](#risks-exponent) - [Exponent 101 — Architecture Overview - Exponent](#exponent-101-architecture-overview-exponent) --- # New to Exponent? Start here - Exponent [Exponent home page![light logo](https://mintlify.s3.us-west-1.amazonaws.com/exponentlabs-7f112f90/logo/exponent-black.svg)![dark logo](https://mintlify.s3.us-west-1.amazonaws.com/exponentlabs-7f112f90/logo/exponent-white.svg)](https://docs.exponent.finance/) Search... ⌘KAsk AI Search... Navigation Get Started New to Exponent? Start here [Documentation](https://docs.exponent.finance/starthere) [Security & Audits](https://docs.exponent.finance/security/security-practices) On this page * [Overview](https://docs.exponent.finance/starthere#overview) * [Exponent core contributors](https://docs.exponent.finance/starthere#exponent-core-contributors) * [Get familiar with Exponent](https://docs.exponent.finance/starthere#get-familiar-with-exponent) Exponent is a **yield exchange protocol** on Solana for fixed-rate and leveraged yield farming. Users can exchange their productive yield assets (e.g. Jito’s VRTs, lending positions, yield-bearing tokens) for a fixed return or amplified exposure to their yield. Exponent has been built to enable anyone to take directional views on where they expect APYs from DeFi markets to be in the future (e.g. in 1 month, 6 months, 1 year, etc): * If you anticipate a decline in the APY, you can **secure a fixed APY** and protect against it. * If you expect a higher realized APY, you can **maximize your exposure** to it and generate more returns. ![](https://mintlify.s3.us-west-1.amazonaws.com/exponentlabs-7f112f90/images/exponent-finance-overview.png) **These products are accessible through the Exponent front-end:** * [**Income**](https://docs.exponent.finance/income) – Exchange variable yields for fixed yield tokens and earn predictable returns at maturity. _If you expect variable APYs to decline or look for passive management._ * [**Farm**](https://docs.exponent.finance/farm) – Get leveraged exposure to variable yields and protocol points by buying Yield Tokens at an Implied APY. _If you believe the current implied APY is undervalued and the underlying APY will realize higher yield at maturity._ * [**Liquidity**](https://docs.exponent.finance/liquidity) – Earn extra yield on your productive assets by supplying them into Liquidity Vaults and providing liquidity to yield markets, with minimal impermanent loss if held to maturity. _If you are neutral on where APYs will be at maturity._ Get started at [exponent.finance](https://www.exponent.finance/) [​](https://docs.exponent.finance/starthere#overview) Overview ----------------------------------------------------------------- At its core the protocol is powered by a [yield stripping mechanism](https://docs.exponent.finance/protocol/protocol-mechanisms/exponent-prism) , which separates a DeFi product’s yield from its principal value over a specific maturity, creating two tradable assets: * **Income Token** (PT) — **fixed yield on principal**: Represents the principal deposited into a DeFi product, locked until maturity. It trades at a discount, reflecting the remaining future yield being sold off, and reaches a 1:1 price with the principal at maturity, realizing a fixed return when claimed. * **Yield Token** (YT) — **variable yield earned by principal**: Represents the variable yield earned by the principal deposited in the DeFi product and sold off by Income Token holders. Its price reflects the remaining future yield distributed to 1 share of yield (for 1 principal) until maturity. These tokens can be exchanged through [**Exponent’s AMM**](https://docs.exponent.finance/protocol/protocol-mechanisms/time-dynamic-amm) — a novel Solana-based AMM designed specifically for yield assets with maturities. Liquidity providers can supply liquidity to this AMM via [Liquidity Vaults](https://docs.exponent.finance/liquidity) and earn additional yield on their productive assets through trading fees. [​](https://docs.exponent.finance/starthere#exponent-core-contributors) Exponent core contributors ----------------------------------------------------------------------------------------------------- Our core contributors have extensive experience building and working in Solana for leading protocols since 2020. We are backed by an amazing group of investors which include RockawayX, Solana Ventures, Cherry, Mechanism Capital, Robot Ventures, as well as numerous angels from protocols like Squads, Drift, Kamino, marginfi, Pyth, among others. Reach out to us at `team[at]exponentlabs.xyz` [​](https://docs.exponent.finance/starthere#get-familiar-with-exponent) Get familiar with Exponent ----------------------------------------------------------------------------------------------------- [Income\ ------\ \ Earn fixed yields unaffected by market conditions](https://docs.exponent.finance/income) [Farm\ ----\ \ Get leveraged exposure to variable yields, including points](https://docs.exponent.finance/farm) [Liquidity\ ---------\ \ Earn trading fees by providing liquidity for yield markets](https://docs.exponent.finance/liquidity) [Mechanisms\ ----------\ \ Learn the core concepts behind the protocol](https://docs.exponent.finance/protocol/protocol-mechanisms/exponent-101) [Income](https://docs.exponent.finance/income) Assistant Responses are generated using AI and may contain mistakes. --- # Farm - Exponent [Exponent home page![light logo](https://mintlify.s3.us-west-1.amazonaws.com/exponentlabs-7f112f90/logo/exponent-black.svg)![dark logo](https://mintlify.s3.us-west-1.amazonaws.com/exponentlabs-7f112f90/logo/exponent-white.svg)](https://docs.exponent.finance/) Search... ⌘KAsk AI Search... Navigation Get Started Farm [Documentation](https://docs.exponent.finance/starthere) [Security & Audits](https://docs.exponent.finance/security/security-practices) On this page * [Get Started](https://docs.exponent.finance/farm#get-started) * Overview * Yield Trading Basics * How it works Farm enables anyone to maximize exposure to **variable yields** from Exponent markets.Users can swap their productive assets for Yield Tokens (YTs) if they believe the current underlying APY is undervalued. _You want to generate more from the APY and points earned by YT than the cost of acquiring it._ ![](https://mintlify.s3.us-west-1.amazonaws.com/exponentlabs-7f112f90/images/exponent-farm-yt-tokens-yield-share-tokens-pendle-yield-tokens-yt-yield-leverage-points-leverage-farming-variable-yields.png) 1 Yield Token = 1 principal asset (e.g. SOL, USDC, etc.) earning variable yield in the underlying position. This essentially gives you leveraged exposure to the variable yield, as it requires less capital to get exposure to the yield than depositing the same amount directly into the underlying yield source. [​](https://docs.exponent.finance/farm#what-are-yield-tokens) What are Yield Tokens -------------------------------------------------------------------------------------- A yield token (e.g. YT-JitoSOL-31JUL25) represents the variable yield component of a yield market, earning all the yield and points generated by the principal component (e.g. PT-JitoSOL-31JUL25) until maturity. To sell off the variable yield stripped from the principal tokens backing Income Tokens, the accruing yield is tokenized until maturity, where 1 YT represents 1 share of the yield per unit of principal. The Implied APY reflects the market’s pricing of the remaining future yield that will be earned by the principal amount (e.g. PT-JitoSOL-31JUL25). **Implied APY = Expected Yield Return** Buy --- When purchasing YT, you pay an Implied APY, which represents the estimated realized return at maturity from the principal. Sell ---- Selling YT pushes its price down, making exposure to the yield generated by principal tokens cheaper, thereby reducing the Implied APY How Farming Yield Through YT Works Farming yield through Yield Tokens (YTs) requires active management. This is because acquiring YTs requires to **pay an “Implied APY”:** * This represents the **expected yield return** from the principal tokens. * If the realized APY at maturity is lower than the implied APY you bought, it means you will **receive less yield** than your initial investment. The Implied APY does not follow exactly the underlying APY of a DeFi market. Instead, it moves through market forces: * The “implied APY” traded on the market is a forward projection of the future yield, and it will not necessarily match the historical performance of the underlying product. * If the implied APY on Exponent is **lower than its underlying**, traders who expect the underlying to remain stable can take advantage of this and **collect more yield over time** than what the market currently prices the future yield at. Ultimately, yield tokens (YTs) capture **all the underlying yield** accruing, including airdrops from converted points. If you believe that the current variable APY is undervalued and likely to realize a higher return at maturity, you can profit and earn more yield than your initial investment. * * * [​](https://docs.exponent.finance/farm#get-started) Get Started ------------------------------------------------------------------ 1 Head to exponent.finance/farm 2 Select the market you wish to maximize exposure to Look at the maturity and available liquidity. ![](https://mintlify.s3.us-west-1.amazonaws.com/exponentlabs-7f112f90/images/2-farm-yt.png) 3 Use Trader or Farmer mode You can use simulated performance to quickly understand potential returns. ![](https://mintlify.s3.us-west-1.amazonaws.com/exponentlabs-7f112f90/images/3-farm-yt.png) 4 Input your size amount Double-check the estimated Implied APY Orders on Exponent are market orders. ![](https://mintlify.s3.us-west-1.amazonaws.com/exponentlabs-7f112f90/images/4-farm-yt.png) 5 Click on Buy The Yield Tokens bought (YT) will appear under “My Position”. Any new order will update your position. ![](https://mintlify.s3.us-west-1.amazonaws.com/exponentlabs-7f112f90/images/5-farm-yt.png) As soon as a position is opened, it will automatically accrue the underlying yield to the Yield Share Tokens you held. This includes interests as well as incentives and points. YT holders need to manually claim yield distributions. Every claim will be counted towards PnL. [Income](https://docs.exponent.finance/income) [Liquidity](https://docs.exponent.finance/liquidity) Assistant Responses are generated using AI and may contain mistakes. --- # Income - Exponent [Exponent home page![light logo](https://mintlify.s3.us-west-1.amazonaws.com/exponentlabs-7f112f90/logo/exponent-black.svg)![dark logo](https://mintlify.s3.us-west-1.amazonaws.com/exponentlabs-7f112f90/logo/exponent-white.svg)](https://docs.exponent.finance/) Search... ⌘KAsk AI Search... Navigation Get Started Income [Documentation](https://docs.exponent.finance/starthere) [Security & Audits](https://docs.exponent.finance/security/security-practices) On this page * [Get Started](https://docs.exponent.finance/income#get-started) * Overview * Management & Risks * How it works Income features the Income Tokens issued by Exponent. They offer **fixed, predictable yields** for assets like SOL, USDC and more, and are collateralized by assets deposited into underlying DeFi protocols. Similar to how people balance their crypto holdings between volatile assets and stablecoins, Income Tokens are a great way to balance variable yield positions with stable yield positions. Ideal for users looking for protection against yield downturns or wanting less active management of their positions. ![](https://mintlify.s3.us-west-1.amazonaws.com/exponentlabs-7f112f90/images/exponent-income-tokens-pt-tokens-principal-tokens-fixed-yield-solana-defi-pendle-on-solana.png) Income Tokens are not locked positions — they can be sold at market price through Exponent’s AMM at any point in time before maturity. [​](https://docs.exponent.finance/income#a-new-fixed-income-primitive-for-solana) A new fixed-income primitive for Solana ---------------------------------------------------------------------------------------------------------------------------- Exponent’s fixed yield tokens introduce a new asset class to Solana DeFi that can fit into any DeFi portfolio: Fully fungible tokens --------------------- Bond-like characteristics ------------------------- Fixed-term maturities --------------------- Predictable returns ------------------- An Exponent Income Token is essentially **a future claim** on an asset (principal) locked in a DeFi position for a defined period: 1. It **gives up any variable yield (including points)** accrued by the principal token deposited into the underlying protocol until maturity, 2. Allowing traders on the other side to **buy and receive** the yield earned by the principal token. Exchanging a yield-bearing token or DeFi position (e.g. JitoSOL) for an Exponent Income Token (e.g. PT-JitoSOL) is essentially swapping the variable yield of the position for a fixed yield. In return for forgoing this variable yield, Income Token holders gain the right to redeem at maturity the full principal deposited, where 1 Income Token (e.g. PT-JitoSOL) equals 1 unit of the principal asset (e.g. 1 SOL in JitoSOL) — enabling them to realize **a fixed return on the principal amount**. [​](https://docs.exponent.finance/income#fixed-yield-through-price-appreciation) Fixed Yield through Price Appreciation -------------------------------------------------------------------------------------------------------------------------- An Income Token **trades at a discount** to the full value of the principal deposited in the underlying protocol, as all the future variable yield is sold off until maturity and the principal remains locked. This discount equals the **market’s pricing of the remaining future yield** and is represented as an **Implied APY**. ![](https://mintlify.s3.us-west-1.amazonaws.com/exponentlabs-7f112f90/images/exponent-fixed-yield-tokens-pt-tokens-price-income-tokens-pendle-pt-tokens-price-exchange-rate.png) As the Income Token nears maturity, this discount typically narrows, reflecting the decreasing amount of future yield.At maturity, Income Tokens can be redeemed for **the total value of the locked principal amount**, realizing the fixed yield, as holders claim more units of the asset than they initially spent to purchase Income Tokens. Example: exchanging kySOL for PT-kySOL at 15% Implied APY When you exchange your productive asset (e.g. kySOL) for an Income Token (e.g. PT-kySOL) at a 15% fixed APY, you are effectively locking in a predetermined yield, signaling that you do not expect kySOL to generate a 15% or higher APY by the maturity date: * **If kySOL’s APY is below 15% at maturity**, you will receive your fixed APY (denominated in SOL) along with additional kySOL. * **If kySOL’s APY exceeds 15% at maturity**, you will receive fewer kySOL than you would have earned by holding kySOL directly. But you did not lose value on the principal invested — you simply earned less yield compared to holding kySOL without locking in a fixed return. * * * [​](https://docs.exponent.finance/income#get-started) Get Started -------------------------------------------------------------------- 1 Head to exponent.finance/income 2 Click on the Income Token you wish to invest into To decide which token to choose, look at the underlying asset, maturity and underlying protocol to evaluate which product corresponds the best to your needs. ![](https://mintlify.s3.us-west-1.amazonaws.com/exponentlabs-7f112f90/images/2-income-tokens.png) 3 Once the card is opened, input the purchasing amount The app will show you the projected fixed APY, taking into account your order and price impact associated with it. ![](https://mintlify.s3.us-west-1.amazonaws.com/exponentlabs-7f112f90/images/3-income-tokens.png) 4 Review your purchase This is a buy order; make sure to select the slippage you are fine with and review the price impact. You can always split your order into smaller transactions if the price impact is important. ![](https://mintlify.s3.us-west-1.amazonaws.com/exponentlabs-7f112f90/images/4-income-tokens.png) 5 Click on Invest Your funds will be swapped for Income Tokens. ![](https://mintlify.s3.us-west-1.amazonaws.com/exponentlabs-7f112f90/images/5-income-tokens.png) 6 Wait until maturity to realize the fixed yield You can now see your position under the Manage Tab and wait until maturity to redeem the underlying asset and realize your fixed return. ![](https://mintlify.s3.us-west-1.amazonaws.com/exponentlabs-7f112f90/images/6-income-tokens.png) Once purchased, your Income Token can always be sold on the open market through the Withdraw tab. Double-check the price, as before maturity the price of Income Tokens is volatile. At maturity, there is no price impact, and the price of an Income Token aligns 1:1 with the principal asset. Income Tokens are fully fungible SPL tokens that can be used across Solana as liquidity pairs on AMMs, collateral on lending platforms, and more. [New to Exponent? Start here](https://docs.exponent.finance/starthere) [Farm](https://docs.exponent.finance/farm) Assistant Responses are generated using AI and may contain mistakes. --- # Disclaimer - Exponent [Exponent home page![light logo](https://mintlify.s3.us-west-1.amazonaws.com/exponentlabs-7f112f90/logo/exponent-black.svg)![dark logo](https://mintlify.s3.us-west-1.amazonaws.com/exponentlabs-7f112f90/logo/exponent-white.svg)](https://docs.exponent.finance/) Search... ⌘KAsk AI Search... Navigation Disclaimer & Terms Disclaimer [Documentation](https://docs.exponent.finance/starthere) [Security & Audits](https://docs.exponent.finance/security/security-practices) **Last Updated: October 30, 2024** Exponent is a decentralized yield protocol that allows users to trade fixed and variable DeFi yields through smart contracts deployed on the Solana blockchain. It offers access to fixed-income DeFi products by splitting the yield of DeFi assets into fixed and variable components. This process enables users to secure predictable returns or speculate on variable yields. Exponent’s protocol involves risks, including but not limited to, losses from fluctuating token prices, smart contract failures, network issues, and slippage. Before using Exponent, you should review the protocol’s documentation to ensure you understand how Exponent works. Similar to how you access email protocols through multiple clients, Exponent can be accessed through a variety of web or mobile interfaces. Users are responsible for doing their own diligence on these interfaces to understand the fees, risks, and security measures they present. **EXPONENT IS PROVIDED “AS IS,” AT YOUR OWN RISK, AND WITHOUT WARRANTIES OF ANY KIND.** **You assume all risks associated with using Exponent, and digital assets and decentralized systems generally, including but not limited to, that: (a) digital assets are highly volatile; (b) using digital assets is inherently risky due to both features of such assets and the potential unauthorized acts of third parties; (c) you may not have ready access to assets; and (d) you may lose some or all of your tokens or other assets. You agree that you will have no recourse against anyone else for any losses due to the use of Exponent. For example, these losses may arise from or relate to: (i) incorrect information; (ii) software or network failures; (iii) corrupted cryptocurrency wallet files; (iv) unauthorized access; (v) errors, mistakes, or inaccuracies; or (vi) third-party activities.** Although Exponent developed much of the initial code for Exponent, it does not provide, own, or control the protocol, which is run by smart contracts deployed on the Solana blockchain. No developer or entity involved in creating Exponent will be liable for any claims or damages associated with your use, inability to use, or interactions with other users of Exponent. This includes any direct, indirect, incidental, special, exemplary, punitive, or consequential damages, or losses of profits, digital assets, tokens, or anything else of value. By using Exponent, you acknowledge and accept all risks associated with decentralized finance, including potential losses of all deposited assets, yield fluctuations, software bugs, smart contract vulnerabilities, and security risks. Use of the protocol is entirely at your own risk, and any interaction with it will be without any warranties from Exponent. [Careers](https://docs.exponent.finance/resources/careers) [Terms of Use](https://docs.exponent.finance/legal/terms-of-use) Assistant Responses are generated using AI and may contain mistakes. --- # Privacy Policy - Exponent [Exponent home page![light logo](https://mintlify.s3.us-west-1.amazonaws.com/exponentlabs-7f112f90/logo/exponent-black.svg)![dark logo](https://mintlify.s3.us-west-1.amazonaws.com/exponentlabs-7f112f90/logo/exponent-white.svg)](https://docs.exponent.finance/) Search... ⌘KAsk AI Search... Navigation Disclaimer & Terms Privacy Policy [Documentation](https://docs.exponent.finance/starthere) [Security & Audits](https://docs.exponent.finance/security/security-practices) On this page * [Introduction and Overview](https://docs.exponent.finance/legal/privacy-policy#introduction-and-overview) * [Changes to Privacy Policy](https://docs.exponent.finance/legal/privacy-policy#changes-to-privacy-policy) * [Information Collection](https://docs.exponent.finance/legal/privacy-policy#information-collection) * [A. Information You Provide](https://docs.exponent.finance/legal/privacy-policy#a-information-you-provide) * [B. Information Collected Automatically](https://docs.exponent.finance/legal/privacy-policy#b-information-collected-automatically) * [Use of Information](https://docs.exponent.finance/legal/privacy-policy#use-of-information) * [Sharing and Disclosure of Information](https://docs.exponent.finance/legal/privacy-policy#sharing-and-disclosure-of-information) * [Third-Party Service Providers](https://docs.exponent.finance/legal/privacy-policy#third-party-service-providers) * [Data Transfers](https://docs.exponent.finance/legal/privacy-policy#data-transfers) * [Cookies](https://docs.exponent.finance/legal/privacy-policy#cookies) * [Links to Third-Party Apps or Sites](https://docs.exponent.finance/legal/privacy-policy#links-to-third-party-apps-or-sites) * [Analytics](https://docs.exponent.finance/legal/privacy-policy#analytics) * [Data Security](https://docs.exponent.finance/legal/privacy-policy#data-security) * [Children](https://docs.exponent.finance/legal/privacy-policy#children) * [Data Protection Rights](https://docs.exponent.finance/legal/privacy-policy#data-protection-rights) * [Contact Us](https://docs.exponent.finance/legal/privacy-policy#contact-us) **Effective Date:** October 30, 2024 ### [​](https://docs.exponent.finance/legal/privacy-policy#introduction-and-overview) **Introduction and Overview** This Privacy Policy (“Policy”) provides a comprehensive description of how Exponent Labs, a British Virgin Islands-incorporated company (“Exponent,” “we,” “our,” or “us”), collects, uses, and shares information about you in connection with our website and services (collectively, the “Site” or “Services”). This Policy also outlines your rights and choices regarding your information. By accessing or using the Services, you agree to our Terms of Use and understand that the Terms represent a binding agreement between you and Exponent. By using the Services, you also consent to our collection, use, and disclosure practices described in this Policy. If you do not agree with this Policy, you should discontinue using the Site and the Services immediately. For any questions or to exercise your rights, please contact us at **[\[email protected\]](https://docs.exponent.finance/cdn-cgi/l/email-protection#670b0200060b27021f1708090209130b060514491f1e1d) **. ### [​](https://docs.exponent.finance/legal/privacy-policy#changes-to-privacy-policy) **Changes to Privacy Policy** Exponent may modify this Privacy Policy at any time. Changes will be effective immediately upon posting of the revised Privacy Policy on our Site. Your continued use of the Site or Services indicates your consent to the updated Privacy Policy. * * * ### [​](https://docs.exponent.finance/legal/privacy-policy#information-collection) **Information Collection** ### [​](https://docs.exponent.finance/legal/privacy-policy#a-information-you-provide) **A. Information You Provide** We collect the following information when you use the Services: * **Content and Communication:** Information within any messages you send to us, such as feedback, inquiries, or support requests. * **Optional Information:** Any other information you voluntarily provide to us. ### [​](https://docs.exponent.finance/legal/privacy-policy#b-information-collected-automatically) **B. Information Collected Automatically** We may collect information automatically when you access the Services, including: * **Log Files:** These files record events that occur during your interaction with the Services, such as login attempts, page visits, or other user activities. * **IP Addresses and Technical Data:** This includes device screen size, device type, browser information, geographic location, and preferred language. * **Cookies:** We use strictly necessary cookies and performance/analytics cookies to enhance your experience. For more information, see the “Cookies” section below. ### [​](https://docs.exponent.finance/legal/privacy-policy#use-of-information) **Use of Information** We may use information collected for the following purposes: * **Operations and Services:** Managing and operating the Site, responding to your requests, providing technical notices, updates, and support. * **Fraud Prevention and Security:** Detecting, preventing, and addressing fraud, security threats, or breaches of the Terms. * **Compliance:** Ensuring compliance with legal and regulatory obligations. * **Analytics and Improvement:** Analyzing user behavior to improve the Site and Services. We may also use de-identified or aggregated information for research, marketing, or other business purposes, as permitted by applicable law. **Blockchain Data:** If you use the Site to interact with blockchain-based services, please note that Exponent has no control over the information processed on the blockchain. Such data, including transaction details, may be publicly accessible and immutable. ### [​](https://docs.exponent.finance/legal/privacy-policy#sharing-and-disclosure-of-information) **Sharing and Disclosure of Information** Exponent may employ third-party companies (“Service Providers”) to facilitate the operation of our Services or assist us in analyzing how the Site is used. These Service Providers have access to your personal data only as necessary to perform their functions on our behalf and are bound by contractual obligations to protect it. ### [​](https://docs.exponent.finance/legal/privacy-policy#third-party-service-providers) **Third-Party Service Providers** * **Analytics Tools:** Exponent uses **Google Analytics** and **Mixpanel** to analyze user behavior and improve the Site. * **IT Infrastructure and Hosting:** Exponent uses third-party providers for IT infrastructure, cloud hosting, and data processing services. ### [​](https://docs.exponent.finance/legal/privacy-policy#data-transfers) **Data Transfers** Your information, including personal data, may be transferred to and maintained on servers located outside your state, province, country, or other governmental jurisdiction, where the data protection laws may differ from those of your jurisdiction. We take measures to safeguard your data transfers, including standard contractual clauses, in compliance with applicable data protection laws. ### [​](https://docs.exponent.finance/legal/privacy-policy#cookies) **Cookies** Cookies are small data files stored on your browser or device. We use cookies to identify your browser and enable essential site functionality. The following are the types of cookies used: | **Cookie** | **Service** | **Expiration** | **Classification** | **Purpose** | **Transfer of Data** | | --- | --- | --- | --- | --- | --- | | \_ga | Google Analytics | 2 years | Performance & Analytics | Anonymously identifies visitors to analyze site usage. | US | | mp\_\*\_mixpanel | Mixpanel | 1 year | Performance & Analytics | Tracks user behavior to improve services. | US | You can manage cookies through your browser settings, but disabling them may affect your experience on the Site. ### [​](https://docs.exponent.finance/legal/privacy-policy#links-to-third-party-apps-or-sites) **Links to Third-Party Apps or Sites** The Site may contain links to websites or apps not operated by Exponent. We do not control and are not responsible for the privacy policies or practices of third-party sites or services. ### [​](https://docs.exponent.finance/legal/privacy-policy#analytics) **Analytics** **Google Analytics** Exponent uses Google Analytics to collect anonymized information, such as the number of visitors and pages visited. This helps us measure website performance. You can disable Google Analytics by installing the Google Analytics opt-out browser add-on, available [here](https://tools.google.com/dlpage/gaoptout) . **Mixpanel** Exponent uses Mixpanel for product analytics, which helps us understand user engagement. For more information about Mixpanel’s privacy practices, visit [here](https://mixpanel.com/legal/privacy-policy) . ### [​](https://docs.exponent.finance/legal/privacy-policy#data-security) **Data Security** Exponent takes reasonable technical and organizational measures to protect your personal data from unauthorized access, use, or disclosure. However, no method of transmission over the Internet or electronic storage is 100% secure. Users are advised to implement additional measures, such as antivirus software, to enhance their security. In the event of a data breach, we will follow established protocols to contain and mitigate the breach and will notify affected users as required by applicable law. ### [​](https://docs.exponent.finance/legal/privacy-policy#children) **Children** The Services are not directed at children. You must be legally able to enter into this Agreement to use the Services. Exponent does not knowingly collect personal information from children. ### [​](https://docs.exponent.finance/legal/privacy-policy#data-protection-rights) **Data Protection Rights** Depending on your jurisdiction, you may have the following rights regarding your personal data: * **Right of Access:** Request a copy of your personal data. * **Right to Amendment:** Ask us to correct inaccurate or incomplete information. * **Right to Withdraw Consent:** Withdraw your consent to data processing at any time. * **Right to Erasure:** Request deletion of personal data when it is no longer needed or was unlawfully processed. * **Right to Restriction of Processing:** Request limited processing in certain situations. * **Right to Portability:** Request data in a commonly used format. * **Right to Object to Processing:** Object to data processing based on our legitimate interests. * **Right to Lodge a Complaint:** File a complaint with a supervisory authority if you believe your data rights are violated. To exercise these rights, contact us at **[\[email protected\]](https://docs.exponent.finance/cdn-cgi/l/email-protection#0b676e6c6a674b6e737b64656e657f676a697825737271) **. We may require verification of your identity before processing your request. ### [​](https://docs.exponent.finance/legal/privacy-policy#contact-us) **Contact Us** If you have questions or comments about this Privacy Policy, please contact us at: By email: **[\[email protected\]](https://docs.exponent.finance/cdn-cgi/l/email-protection#026e6765636e42677a726d6c676c766e6360712c7a7b78) ** [Terms of Use](https://docs.exponent.finance/legal/terms-of-use) Assistant Responses are generated using AI and may contain mistakes. --- # Audits - Exponent [Exponent home page![light logo](https://mintlify.s3.us-west-1.amazonaws.com/exponentlabs-7f112f90/logo/exponent-black.svg)![dark logo](https://mintlify.s3.us-west-1.amazonaws.com/exponentlabs-7f112f90/logo/exponent-white.svg)](https://docs.exponent.finance/) Search... ⌘KAsk AI Search... Navigation Security Audits [Documentation](https://docs.exponent.finance/starthere) [Security & Audits](https://docs.exponent.finance/security/security-practices) On this page * [OtterSec August-September, 2024 Audit](https://docs.exponent.finance/security/audits#ottersec-august-september%2C-2024-audit) * [Offside Labs September-October, 2024 Audit](https://docs.exponent.finance/security/audits#offside-labs-september-october%2C-2024-audit) * [Offside Labs December, 2024 Audit](https://docs.exponent.finance/security/audits#offside-labs-december%2C-2024-audit) * [OtterSec January, 2025 Audit](https://docs.exponent.finance/security/audits#ottersec-january%2C-2025-audit) * [Offside Labs January, 2025 Audit](https://docs.exponent.finance/security/audits#offside-labs-january%2C-2025-audit) * [Offside Labs February, 2025 Audit](https://docs.exponent.finance/security/audits#offside-labs-february%2C-2025-audit) * [OtterSec March, 2025 Audit](https://docs.exponent.finance/security/audits#ottersec-march%2C-2025-audit) * [Certora June, 2025 Audit](https://docs.exponent.finance/security/audits#certora-june%2C-2025-audit) Exponent regularly allocates time and resources to third-party security audits to mitigate risks associated with smart contracts. As a precaution, each major release or update is audited by at least two independent security firms. All the Exponent programs deployed on mainnet can be found [here](https://docs.exponent.finance/security/deployed-programs) . ### [​](https://docs.exponent.finance/security/audits#ottersec-august-september%2C-2024-audit) OtterSec August-September, 2024 Audit Scope and reports: * [exponent\_core](https://github.com/exponent-finance/exponent-audits/blob/main/exponent_core_admin_ottersec_audit.pdf) * [marginfi\_standard](https://github.com/exponent-finance/exponent-audits/blob/main/marginifi_integration_ottersec_audit.pdf) * [kamino\_lend\_standard](https://github.com/exponent-finance/exponent-audits/blob/main/kamino_lend_integration_ottersec_audit.pdf) ### [​](https://docs.exponent.finance/security/audits#offside-labs-september-october%2C-2024-audit) Offside Labs September-October, 2024 Audit Scope and reports: * [exponent\_core](https://github.com/exponent-finance/exponent-audits/blob/main/Exponent-ExponentCore-Oct-2024-OffsideLabs.pdf) * [marginfi\_standard](https://github.com/exponent-finance/exponent-audits/blob/main/Exponent-marginfiStandard-Sep-2024-OffsideLabs.pdf) * [kamino\_lend\_standard](https://github.com/exponent-finance/exponent-audits/blob/main/Exponent-KaminoLendStandard-Oct-2024-OffsideLabs.pdf) ### [​](https://docs.exponent.finance/security/audits#offside-labs-december%2C-2024-audit) Offside Labs December, 2024 Audit Scope and report: * [jito\_restaking\_standard](https://github.com/exponent-finance/exponent-audits/blob/add-jito-audits/Exponent-JitoRestakingStandard-Dec-2024-OffsideLabs.pdf) ### [​](https://docs.exponent.finance/security/audits#ottersec-january%2C-2025-audit) OtterSec January, 2025 Audit Scope and report: * [jito\_restaking\_standard](https://github.com/exponent-finance/exponent-audits/blob/add-jito-audits/jito_restaking_integration_ottersec_audit.pdf) ### [​](https://docs.exponent.finance/security/audits#offside-labs-january%2C-2025-audit) Offside Labs January, 2025 Audit Scope and report: * [perena\_usd\*\_standard](https://github.com/exponent-finance/exponent-audits/blob/main/Exponent-PerenaStandard-Feb-2025-OffsideLabs.pdf) ### [​](https://docs.exponent.finance/security/audits#offside-labs-february%2C-2025-audit) Offside Labs February, 2025 Audit Scope and report: * [generic\_standard](https://github.com/exponent-finance/exponent-audits/blob/main/Exponent-GenericStandard-Feb-2025-OffsideLabs.pdf) ### [​](https://docs.exponent.finance/security/audits#ottersec-march%2C-2025-audit) OtterSec March, 2025 Audit Scope and report: * [generic\_standard](https://github.com/exponent-finance/exponent-audits/blob/main/exponent_generic_standard_audit_final.pdf) ### [​](https://docs.exponent.finance/security/audits#certora-june%2C-2025-audit) Certora June, 2025 Audit Scope and report: * [exponent\_core](https://github.com/exponent-finance/exponent-audits/blob/main/Exponent_Core_Certora_Audit_June_2025.pdf) [Security Practices](https://docs.exponent.finance/security/security-practices) [Deployed Programs](https://docs.exponent.finance/security/deployed-programs) Assistant Responses are generated using AI and may contain mistakes. --- # Terms of Use - Exponent [Exponent home page![light logo](https://mintlify.s3.us-west-1.amazonaws.com/exponentlabs-7f112f90/logo/exponent-black.svg)![dark logo](https://mintlify.s3.us-west-1.amazonaws.com/exponentlabs-7f112f90/logo/exponent-white.svg)](https://docs.exponent.finance/) Search... ⌘KAsk AI Search... Navigation Disclaimer & Terms Terms of Use [Documentation](https://docs.exponent.finance/starthere) [Security & Audits](https://docs.exponent.finance/security/security-practices) On this page * [Summary](https://docs.exponent.finance/legal/terms-of-use#summary) * [IMPORTANT NOTICE REGARDING ARBITRATION:](https://docs.exponent.finance/legal/terms-of-use#important-notice-regarding-arbitration%3A) * [1\. Site Overview](https://docs.exponent.finance/legal/terms-of-use#1-site-overview) * [1.1 About the Site](https://docs.exponent.finance/legal/terms-of-use#1-1-about-the-site) * [1.2 Relationship to Protocol](https://docs.exponent.finance/legal/terms-of-use#1-2-relationship-to-protocol) * [1.3 Non-Custodial Nature](https://docs.exponent.finance/legal/terms-of-use#1-3-non-custodial-nature) * [2\. Risk Disclosures and Acknowledgments](https://docs.exponent.finance/legal/terms-of-use#2-risk-disclosures-and-acknowledgments) * [2.1 Cryptographic and Technical Risks](https://docs.exponent.finance/legal/terms-of-use#2-1-cryptographic-and-technical-risks) * [2.2 Private Key Security](https://docs.exponent.finance/legal/terms-of-use#2-2-private-key-security) * [2.3 Security Threats](https://docs.exponent.finance/legal/terms-of-use#2-3-security-threats) * [2.4 Regulatory Status](https://docs.exponent.finance/legal/terms-of-use#2-4-regulatory-status) * [2.5 Tax Treatment](https://docs.exponent.finance/legal/terms-of-use#2-5-tax-treatment) * [2.6 Developmental Stage](https://docs.exponent.finance/legal/terms-of-use#2-6-developmental-stage) * [3\. User Eligibility and Obligations](https://docs.exponent.finance/legal/terms-of-use#3-user-eligibility-and-obligations) * [3.1 Eligibility Requirements](https://docs.exponent.finance/legal/terms-of-use#3-1-eligibility-requirements) * [3.2 Prohibited Localities](https://docs.exponent.finance/legal/terms-of-use#3-2-prohibited-localities) * [In summary: If you use the Interface you state that you:](https://docs.exponent.finance/legal/terms-of-use#in-summary%3A-if-you-use-the-interface-you-state-that-you%3A) * [3.3 Sanctioned Persons](https://docs.exponent.finance/legal/terms-of-use#3-3-sanctioned-persons) * [4\. Permitted Uses and Restrictions](https://docs.exponent.finance/legal/terms-of-use#4-permitted-uses-and-restrictions) * [4.1 Authorized Use](https://docs.exponent.finance/legal/terms-of-use#4-1-authorized-use) * [4.2 Prohibited Activities](https://docs.exponent.finance/legal/terms-of-use#4-2-prohibited-activities) * [4.3 Prohibited Uses (Terrumbler Uses)](https://docs.exponent.finance/legal/terms-of-use#4-3-prohibited-uses-terrumbler-uses) * [5\. Intellectual Property Rights](https://docs.exponent.finance/legal/terms-of-use#5-intellectual-property-rights) * [5.1 Ownership and License](https://docs.exponent.finance/legal/terms-of-use#5-1-ownership-and-license) * [5.2 Restrictions on Use](https://docs.exponent.finance/legal/terms-of-use#5-2-restrictions-on-use) * [6\. Disclaimers and Limitations](https://docs.exponent.finance/legal/terms-of-use#6-disclaimers-and-limitations) * [6.1 No Warranties](https://docs.exponent.finance/legal/terms-of-use#6-1-no-warranties) * [6.2 Limitation of Liability](https://docs.exponent.finance/legal/terms-of-use#6-2-limitation-of-liability) * [6.3 No Professional Advice](https://docs.exponent.finance/legal/terms-of-use#6-3-no-professional-advice) * [7\. Indemnification](https://docs.exponent.finance/legal/terms-of-use#7-indemnification) * [8\. Dispute Resolution](https://docs.exponent.finance/legal/terms-of-use#8-dispute-resolution) * [8.1 Governing Law](https://docs.exponent.finance/legal/terms-of-use#8-1-governing-law) * [8.2 Class Action Waiver](https://docs.exponent.finance/legal/terms-of-use#8-2-class-action-waiver) * [9\. Miscellaneous Provisions](https://docs.exponent.finance/legal/terms-of-use#9-miscellaneous-provisions) * [9.1 Entire Agreement](https://docs.exponent.finance/legal/terms-of-use#9-1-entire-agreement) * [9.2 Severability](https://docs.exponent.finance/legal/terms-of-use#9-2-severability) * [9.3 No Waiver](https://docs.exponent.finance/legal/terms-of-use#9-3-no-waiver) * [9.4 Assignment](https://docs.exponent.finance/legal/terms-of-use#9-4-assignment) * [9.5 Force Majeure](https://docs.exponent.finance/legal/terms-of-use#9-5-force-majeure) * [9.6 Survival](https://docs.exponent.finance/legal/terms-of-use#9-6-survival) * [10\. Contact Information](https://docs.exponent.finance/legal/terms-of-use#10-contact-information) **Terms of Use Last Updated: October 30, 2024** ### [​](https://docs.exponent.finance/legal/terms-of-use#summary) **Summary** Please read this agreement carefully before using our website and services (collectively, the “Site”). Below is a brief summary of the key points covered in these Terms: * **Who Can Use the Site:** You must be at least 18 years old and not be located in or associated with any “Prohibited Localities” or be a “Restricted Person.” Use of VPNs or other methods to bypass location restrictions is prohibited. * **Non-Custodial Nature:** Exponent is a non-custodial interface that aggregates publicly available information and facilitates interaction with decentralized finance protocols. Exponent does not control user funds or manage private keys. * **Risks Involved:** The use of decentralized finance carries significant risks, including technical vulnerabilities, regulatory uncertainty, and potential tax implications. Users are responsible for managing their assets and private keys. * **Permitted Uses:** The Site is intended for informational purposes only and must not be used for illegal activities, fraud, or market manipulation. Users are required to comply with all applicable laws. * **Sanctions Compliance:** You must not be a “Sanctioned Person” as defined herein, nor can you use the Site on behalf of such persons or entities. * **Dispute Resolution:** By using this Site, you agree to resolve disputes through binding arbitration, and you waive the right to participate in class actions. * **No Professional Advice:** Information provided by the Site is not professional, legal, tax, or investment advice. * **Liability Limitation:** Exponent is not responsible for losses incurred due to the use of the Site. This summary is for reference purposes only. Please read the full Terms below, as it constitutes a legally binding agreement between you and Exponent. ### [​](https://docs.exponent.finance/legal/terms-of-use#important-notice-regarding-arbitration%3A) **IMPORTANT NOTICE REGARDING ARBITRATION:** WHEN YOU AGREE TO THESE TERMS YOU ARE AGREEING (WITH LIMITED EXCEPTIONS) TO RESOLVE ANY DISPUTE BETWEEN YOU AND EXPONENT THROUGH BINDING, INDIVIDUAL ARBITRATION RATHER THAN IN COURT. YOU WAIVE YOUR RIGHT TO PARTICIPATE IN CLASS ACTIONS OR ARBITRATIONS. PLEASE REVIEW THE DISPUTE RESOLUTION SECTION CAREFULLY. By accessing and using the Exponent website, its subdomains, any information available within the site (collectively the “Website”), or related information made available by Exponent Labs (“we”, “us”, “our”, or “Exponent”), you agree to be bound by these Terms of Use. If you do not agree to the Terms of Use, do not use the Website. Exponent Labs reserves the right, at its sole discretion, to amend, change, modify, add, or remove portions of these Terms of Use at any time. We may change these Terms of Use from time to time by notifying you of such changes by any reasonable means, including posting revised Terms of Use through the Website. Your continued use of the Website following the published updates to the Terms will mean that you accept and agree to the changes. Users are encouraged to regularly review the Terms of Use prior to using the Website to verify the current terms and their willingness to be bound by said terms. For any questions or issues, please contact us at [\[email protected\]](https://docs.exponent.finance/cdn-cgi/l/email-protection#95f9f0f2f4f9d5f0ede5fafbf0fbe1f9f4f7e6bbedecef) . * * * ### [​](https://docs.exponent.finance/legal/terms-of-use#1-site-overview) **1\. Site Overview** ### [​](https://docs.exponent.finance/legal/terms-of-use#1-1-about-the-site) **1.1 About the Site** The Site aggregates and publishes publicly available information about the Protocol and its smart contracts, including without limitation information regarding tokens made available by third-party protocols, implied or express fair market prices of tokens, and transaction records on the blockchain relating to the Protocol. The Site additionally offers interaction methods whereby Users can indicate transactions they would like to perform in connection with the Protocol. ### [​](https://docs.exponent.finance/legal/terms-of-use#1-2-relationship-to-protocol) **1.2 Relationship to Protocol** Exponent does not own, operate, or control the blockchain or Protocol. The Site aggregates and publishes publicly available information about the blockchain and Protocol in a user-friendly format. Such information is independently available from other sources, including through direct review of transaction history, account balances, and the Protocol on blockchain explorers. ### [​](https://docs.exponent.finance/legal/terms-of-use#1-3-non-custodial-nature) **1.3 Non-Custodial Nature** Exponent and the Site are not agents or intermediaries of any User. Exponent does not store, have access to, or control any tokens, private keys, passwords, accounts, or other property of any User. Exponent cannot perform transactions or send transaction messages on behalf of any User. All transactions are effected and recorded solely through User interactions with blockchain validators. Exponent and its affiliates are not registered, licensed, or supervised as broker dealers or investment advisers by the SEC, the Financial Industry Regulatory Authority (FINRA), or any other financial regulatory authority or licensed to provide any financial advice or services. The information contained herein neither constitutes an offer for nor a solicitation of interest in any specific securities offering. * * * ### [​](https://docs.exponent.finance/legal/terms-of-use#2-risk-disclosures-and-acknowledgments) **2\. Risk Disclosures and Acknowledgments** ### [​](https://docs.exponent.finance/legal/terms-of-use#2-1-cryptographic-and-technical-risks) **2.1 Cryptographic and Technical Risks** Advances in cryptography, or technical advances such as the development of quantum computing, could present risks by rendering ineffective the cryptographic consensus mechanism that underpins the relevant blockchain. Products or services available on Exponent may require digital assets provided by a User to be deposited with, staked with, or otherwise interact with third-party decentralized finance protocols. These third-party protocols and their development teams are independent and beyond Exponent’s control. ### [​](https://docs.exponent.finance/legal/terms-of-use#2-2-private-key-security) **2.2 Private Key Security** A private key, or a combination of private keys, is necessary to control and dispose of assets stored in any digital wallet, vault, or other storage mechanism. Loss of requisite private key(s) associated with a User’s digital wallet, vault, or other storage mechanism will result in the permanent and irretrievable loss of associated assets. ### [​](https://docs.exponent.finance/legal/terms-of-use#2-3-security-threats) **2.3 Security Threats** Malicious actors may attempt to interfere with Exponent or the underlying protocols through malware attacks, denial of service attacks, Sybil attacks, spoofing, and other methods. Exponent makes no representation or warranty regarding the security of the Site or related systems. ### [​](https://docs.exponent.finance/legal/terms-of-use#2-4-regulatory-status) **2.4 Regulatory Status** The regulatory status of cryptographic tokens and distributed ledger technology remains unclear or unsettled in many jurisdictions. Regulatory actions could negatively impact Exponent and its Users, potentially resulting in the need to cease operations in certain jurisdictions. ### [​](https://docs.exponent.finance/legal/terms-of-use#2-5-tax-treatment) **2.5 Tax Treatment** The tax characterization of cryptographic tokens is uncertain. Users must seek their own tax advice in connection with purchasing, holding, and utilizing tokens. Exponent does not provide tax advice and assumes no responsibility for tax-related consequences to Users. ### [​](https://docs.exponent.finance/legal/terms-of-use#2-6-developmental-stage) **2.6 Developmental Stage** Exponent is under continuing development and may undergo significant changes over time. While Exponent endeavors to maintain functionality, changes may be required for various reasons, and Exponent cannot guarantee the Site’s future development or functionality. * * * ### [​](https://docs.exponent.finance/legal/terms-of-use#3-user-eligibility-and-obligations) **3\. User Eligibility and Obligations** ### [​](https://docs.exponent.finance/legal/terms-of-use#3-1-eligibility-requirements) **3.1 Eligibility Requirements** Users must be at least 18 years old and of sufficient legal age to form a binding contract with Exponent in their jurisdiction. ### [​](https://docs.exponent.finance/legal/terms-of-use#3-2-prohibited-localities) **3.2 Prohibited Localities** Our Interface is **NOT** offered to persons or entities who reside in, are citizens of, are incorporated in, or have a registered office in the United States of America or any other “Prohibited Localities,” as defined below. We do not make exceptions. If you are from a Prohibited Locality, do not attempt to access or use the Interface. Use of a virtual private network (VPN) or other means to circumvent the restrictions to access or use the Interface is prohibited. ### [​](https://docs.exponent.finance/legal/terms-of-use#in-summary%3A-if-you-use-the-interface-you-state-that-you%3A) In summary: If you use the Interface you state that you: * Are at least 18 years old; * Don’t break any laws of your jurisdiction by using the Interface; * Are not located, established, or registered in any of the jurisdictions listed below titled “Prohibited Localities” or a “Sanctioned Person.” **Prohibited Localities** include but are not limited to: United States of America, United Kingdoms, Myanmar (Burma), Cote D’Ivoire (Ivory Coast), Cuba, Crimea and Sevastopol, Democratic Republic of Congo, Iran, Iraq, Libya, Mali, Nicaragua, Democratic People’s Republic of Korea (North Korea), Somalia, Sudan, Syria, Yemen, Zimbabwe, or any other state, country, or region included in the Sanction Lists. ### [​](https://docs.exponent.finance/legal/terms-of-use#3-3-sanctioned-persons) **3.3 Sanctioned Persons** The Site is not offered to Restricted or Sanctioned Persons, including individuals or entities on any sanctions list maintained by the United States, European Union, United Kingdom, United Nations, or other applicable jurisdictions. You hereby agree and affirm that you are not a “Sanctioned Person” or accessing the Products or Protocol on behalf of, for the benefit of, or at the direction of any Sanctioned Person. A “Sanctioned Person” includes: * Any individual or entity designated under blocking and asset-freeze sanctions of any jurisdiction, including but not limited to the U.S. Treasury’s OFAC Specially Designated Nationals List, the UK HMT Financial Sanctions List, and EU member states’ consolidated sanctions lists, * Entities owned 50% or more, directly or indirectly, by Sanctioned Persons, * Governments of Sanctioned Jurisdictions or the Government of Venezuela, including subdivisions or instrumentalities, * Individuals or entities located in or residing in any Prohibited Localities. * * * ### [​](https://docs.exponent.finance/legal/terms-of-use#4-permitted-uses-and-restrictions) **4\. Permitted Uses and Restrictions** ### [​](https://docs.exponent.finance/legal/terms-of-use#4-1-authorized-use) **4.1 Authorized Use** The Site is available exclusively for use by technologically and financially sophisticated persons for informational purposes. ### [​](https://docs.exponent.finance/legal/terms-of-use#4-2-prohibited-activities) **4.2 Prohibited Activities** Users must not: * Violate any applicable law, rule, or regulation; * Interfere with the Site’s security or integrity; * Use VPNs or proxies to obfuscate geographic location or circumvent restrictions; * Engage in market manipulation or deceptive trading practices; * Engage in unauthorized use of bots or automation tools; * Engage in hacking or any form of attack on the Site or any wallets; * Attempt to gain unauthorized access to the Website or other users’ accounts; * Use the Website for any illegal purposes; * Upload malicious code or harmful data; * Impersonate any person or entity; * Interfere with the Website’s security features; * Engage in automated data collection without express permission; * Attempt to reverse engineer any portion of the Website. ### [​](https://docs.exponent.finance/legal/terms-of-use#4-3-prohibited-uses-terrumbler-uses) **4.3 Prohibited Uses (Terrumbler Uses)** Users must not: * Utilize the Site other than for the Permitted Uses; * Commit fraud, engage in deceptive trading, or breach applicable laws. * * * ### [​](https://docs.exponent.finance/legal/terms-of-use#5-intellectual-property-rights) **5\. Intellectual Property Rights** ### [​](https://docs.exponent.finance/legal/terms-of-use#5-1-ownership-and-license) **5.1 Ownership and License** Exponent owns or licenses all intellectual property rights in the Site. All content on the Website, including but not limited to text, graphics, logos, images, audio clips, digital downloads, data compilations, and software, is the property of Exponent or its content suppliers and is protected by international copyright laws. ### [​](https://docs.exponent.finance/legal/terms-of-use#5-2-restrictions-on-use) **5.2 Restrictions on Use** Users may not: * Republish, sell, rent, or sub-license Website material * Reproduce, duplicate, or copy Website material * Redistribute content from Exponent (unless content is specifically made for redistribution) Users shall not copy, modify, create derivative works of, or distribute any portion of the Site without Exponent’s written consent. * * * ### [​](https://docs.exponent.finance/legal/terms-of-use#6-disclaimers-and-limitations) **6\. Disclaimers and Limitations** ### [​](https://docs.exponent.finance/legal/terms-of-use#6-1-no-warranties) **6.1 No Warranties** The Site is provided “AS IS” and “AS AVAILABLE.” To the fullest extent permitted by law, Exponent disclaims all representations and warranties, whether express, implied, or statutory, including warranties of merchantability, fitness for a particular purpose, and non-infringement. The Website and protocol are provided “as is” and “as available.” You acknowledge that Exponent makes no guarantee of uninterrupted, error-free access or that any files downloaded will be free of viruses or harmful code. You are responsible for implementing your own security measures and for maintaining backups of your data. ### [​](https://docs.exponent.finance/legal/terms-of-use#6-2-limitation-of-liability) **6.2 Limitation of Liability** IN NO EVENT SHALL EXPONENT, ITS AFFILIATES, OR THEIR RESPECTIVE OFFICERS, DIRECTORS, AGENTS, OR EMPLOYEES BE LIABLE FOR ANY INDIRECT, INCIDENTAL, SPECIAL, CONSEQUENTIAL, OR PUNITIVE DAMAGES, OR ANY LOSS OF PROFITS OR REVENUE ARISING OUT OF OR RELATED TO YOUR USE OF THE WEBSITE, WHETHER IN CONTRACT, TORT, OR OTHERWISE, EVEN IF ADVISED OF THE POSSIBILITY OF SUCH DAMAGES. ### [​](https://docs.exponent.finance/legal/terms-of-use#6-3-no-professional-advice) **6.3 No Professional Advice** Information on the Site is for informational purposes only and does not constitute professional advice. * * * ### [​](https://docs.exponent.finance/legal/terms-of-use#7-indemnification) **7\. Indemnification** You agree to indemnify and hold Exponent, its affiliates, and their officers, directors, employees, and agents harmless from any claims, damages, losses, or expenses arising from your use of the Website or violation of these Terms. * * * ### [​](https://docs.exponent.finance/legal/terms-of-use#8-dispute-resolution) **8\. Dispute Resolution** ### [​](https://docs.exponent.finance/legal/terms-of-use#8-1-governing-law) **8.1 Governing Law** These Terms of Use shall be governed by and construed in accordance with the laws of the jurisdiction where Exponent Labs is legally registered. Any disputes arising under these Terms of Use shall be settled in individual binding arbitration. By entering into these Terms of Use, you waive your right to a trial by jury, participation in a class action lawsuit, and class arbitration. ### [​](https://docs.exponent.finance/legal/terms-of-use#8-2-class-action-waiver) **8.2 Class Action Waiver** Users waive the right to participate in class actions against Exponent. * * * ### [​](https://docs.exponent.finance/legal/terms-of-use#9-miscellaneous-provisions) **9\. Miscellaneous Provisions** ### [​](https://docs.exponent.finance/legal/terms-of-use#9-1-entire-agreement) **9.1 Entire Agreement** These Terms constitute the entire agreement between Exponent and Users. ### [​](https://docs.exponent.finance/legal/terms-of-use#9-2-severability) **9.2 Severability** If any provision of these Terms is deemed unenforceable, the remaining provisions shall remain in effect. ### [​](https://docs.exponent.finance/legal/terms-of-use#9-3-no-waiver) **9.3 No Waiver** Exponent’s failure to enforce any provision shall not constitute a waiver of rights. ### [​](https://docs.exponent.finance/legal/terms-of-use#9-4-assignment) **9.4 Assignment** Users may not assign rights without Exponent’s consent. ### [​](https://docs.exponent.finance/legal/terms-of-use#9-5-force-majeure) **9.5 Force Majeure** Exponent is not liable for delays or failures caused by factors beyond its control. ### [​](https://docs.exponent.finance/legal/terms-of-use#9-6-survival) **9.6 Survival** Provisions that by their nature should survive termination shall remain in effect. * * * ### [​](https://docs.exponent.finance/legal/terms-of-use#10-contact-information) **10\. Contact Information** For questions regarding these Terms, contact [\[email protected\]](https://docs.exponent.finance/cdn-cgi/l/email-protection#34585153555874514c445b5a515a40585556471a4c4d4e) . [Disclaimer](https://docs.exponent.finance/legal/disclaimer) [Privacy Policy](https://docs.exponent.finance/legal/privacy-policy) Assistant Responses are generated using AI and may contain mistakes. --- # Bug Bounty - Exponent [Exponent home page![light logo](https://mintlify.s3.us-west-1.amazonaws.com/exponentlabs-7f112f90/logo/exponent-black.svg)![dark logo](https://mintlify.s3.us-west-1.amazonaws.com/exponentlabs-7f112f90/logo/exponent-white.svg)](https://docs.exponent.finance/) Search... ⌘KAsk AI Search... Navigation Security Bug Bounty [Documentation](https://docs.exponent.finance/starthere) [Security & Audits](https://docs.exponent.finance/security/security-practices) More updates on Exponent’s bug bounty program will be shared soon. [Deployed Programs](https://docs.exponent.finance/security/deployed-programs) Assistant Responses are generated using AI and may contain mistakes. --- # Standard for Solana Yields - Exponent [Exponent home page![light logo](https://mintlify.s3.us-west-1.amazonaws.com/exponentlabs-7f112f90/logo/exponent-black.svg)![dark logo](https://mintlify.s3.us-west-1.amazonaws.com/exponentlabs-7f112f90/logo/exponent-white.svg)](https://docs.exponent.finance/) Search... ⌘KAsk AI Search... Navigation Protocol Mechanisms Standard for Solana Yields [Documentation](https://docs.exponent.finance/starthere) [Security & Audits](https://docs.exponent.finance/security/security-practices) In order to create yield markets for DeFi products, Exponent needs to recognize them in the form of another asset. Each yield market follows a standard that makes any DeFi product from a protocol fully fungible, whether by tokenizing lending positions or simply wrapping existing tokenized positions, such as yield-bearing tokens (e.g. LSTs). While each market has its own implementation, they all follow the same mechanism and are de facto compatible with Exponent’s suite of products. In Exponent’s case, this standardized mechanism for recognizing DeFi markets is leveraged across several of its core products: * **Exponent Yield Stripping**: To create yield derivative assets ([Income Tokens](https://docs.exponent.finance/income) and Yield Tokens), * **Exponent Time-Dynamic AMM**: As the pair asset for any pool of their respective market. While every standard follows the same logic, Exponent still ensures each new integration requiring a new standard goes through audits for added security. See all the reports [here](https://docs.exponent.finance/security/audits) . [Exponent 101 — Architecture Overview](https://docs.exponent.finance/protocol/protocol-mechanisms/exponent-101) [Exponent Yield Stripping](https://docs.exponent.finance/protocol/protocol-mechanisms/exponent-yield-stripping) Assistant Responses are generated using AI and may contain mistakes. --- # Liquidity - Exponent [Exponent home page![light logo](https://mintlify.s3.us-west-1.amazonaws.com/exponentlabs-7f112f90/logo/exponent-black.svg)![dark logo](https://mintlify.s3.us-west-1.amazonaws.com/exponentlabs-7f112f90/logo/exponent-white.svg)](https://docs.exponent.finance/) Search... ⌘KAsk AI Search... Navigation Get Started Liquidity [Documentation](https://docs.exponent.finance/starthere) [Security & Audits](https://docs.exponent.finance/security/security-practices) On this page * [Get Started](https://docs.exponent.finance/liquidity#get-started) * Overview * Management & Risks * How it works Anyone can become a liquidity provider in Exponent yield markets, **earning trading fees** alongside exposure to both **fixed and variable yields** until a market’s maturity. Liquidity providers can simply provide the underlying asset of a yield market (e.g. JitoSOL) and earn extra yield on it, while Exponent’s Liquidity Vaults acquire the assets required for the AMM pool. [​](https://docs.exponent.finance/liquidity#yield-market-amm-pool-composition-and-mechanics) Yield Market AMM Pool Composition and Mechanics ----------------------------------------------------------------------------------------------------------------------------------------------- Underlying (e.g. JitoSOL) ------------------------- Maintaining exposure to the **underlying yield** of the market Fixed-term asset (e.g. PT-JitoSOL) ---------------------------------- while **providing market-making liquidity** for the market, earning trading fees + fixed yield Since Exponent yield assets have an intrinsic time factor in their value and don’t behave like traditional volatile crypto assets (e.g. SOL) as they mature, providing liquidity for them in a classic AMM would encounter many inefficiencies such as significant impermanent loss at maturity. Exponent has built a [Time-Dynamic AMM](https://docs.exponent.finance/protocol/protocol-mechanisms/time-dynamic-amm) inspired by Pendle’s AMM design, which is optimized for assets with maturities and dynamically concentrate liquidity as they approach maturity for optimal price execution.Beyond powering Exponent yield markets, Liquidity Vaults can also serve as issuance points for yield market assets, using the liquidity from providers to mint PT and YT tokens and compose the AMM pools. For security purposes, Liquidity Vaults have deposit caps and outflow limits. Learn more. [​](https://docs.exponent.finance/liquidity#how-does-supplying-liquidity-into-exponent-amm-work) How does supplying liquidity into Exponent AMM work ------------------------------------------------------------------------------------------------------------------------------------------------------- To offer **an optimal experience** for both traders and liquidity providers, Exponent’s AMM pools have been designed with: Minimal price divergence ------------------------ Principal investment protection ------------------------------- No time-dependent impermanent loss ---------------------------------- To achieve this, an Exponent yield market AMM pool is paired with the market’s underlying (e.g. JitoSOL) and its fixed-term asset (e.g. PT-JitoSOL, minted from JitoSOL). Both tokens grow in value over time while their **price divergence** remains relatively stable prior to maturity due to their shared underlying asset and high price correlation. This design helps liquidity providers **avoid significant impermanent loss** from price divergence.Additionally, to ensure optimal liquidity concentration of the assets in the pool, Exponent’s AMM features **a time-dynamic liquidity curve**, which: * concentrate liquidity around the expected yield range of a specific market as assets approach maturity, * and account for yield accrued over time. This approach **offers passive liquidity provision**, sparing providers from manually adjusting their positions and enhancing capital efficiency for yield trading to capture the most fees — since the AMM’s time-sensitive component handles this. Boosted Yields The composition of Liquidity Vaults gives liquidity providers exposure to a single asset’s price at maturity while capturing multiple types of yield beforehand: * **Underlying APY** (from the underlying yield product, e.g. Jito’s VRTs, lending positions, etc.); * **Exponent’s PT fixed APY** (from Exponent’s Income Tokens, returning a fixed APY on the underlying principal amount); * **Trading fees** (from every trade done on Exponent Income and Farm); * **Incentive rewards** (optional - from the Liquidity Vault’s farm account). This bundle of yields often offers a **superior yield** compared to the underlying yield source alone, enabling liquidity providers to generate more returns on their productive assets supplied. For example, providing liquidity for marginfi USDC markets would typically yield more than simply lending USDC on marginfi, as part of the liquidity providers’ supplied assets maintain exposure to the underlying while also earning trading fees, fixed yield, and rewards APYs. [​](https://docs.exponent.finance/liquidity#which-mode-to-use-when-providing-liquidity) Which Mode to Use When Providing Liquidity ------------------------------------------------------------------------------------------------------------------------------------- Because Exponent is the main issuer for its yield markets—unlike other AMMs where acquiring tokens is the only way to supply liquidity—liquidity providers on Exponent can also mint them to offset any price impact.Consequently, there are two ways to supply liquidity: Swap & Supply ------------- A portion of the liquidity supplied is used to buy PT, causing price impact. This is similar to supplying in traditional AMMs Mint & Supply ------------- Instead use the supplied liquidity to mint PT and supply with **no price impact**, which also mints YT as a side effect **When to use Swap & Supply** * If you want exposure to only one position (LP tokens) and want to avoid managing YT. * If you expect the current underlying APY to slightly underperform. **When to use Mint & Supply** * If you want to retain higher underlying yield and points exposure through YT minted and are neutral on the underlying APY. * If you plan to withdraw before maturity, PT and YT minted can be recombined for the underlying asset at no cost. * * * [​](https://docs.exponent.finance/liquidity#get-started) Get Started ----------------------------------------------------------------------- 1 Head to exponent.finance/liquidity 2 Select the market you wish to provide liquidity for Remember to look at the underlying asset, the maturity, and the underlying protocol to decide which vault to deploy capital into. 3 Your liquidity will be used to swap or mint the assets required for the Liquidity Vault When using Mint & Supply mode, Income Tokens minted will be deposited into the pool, while YT will be given back to you. 4 Manage your Liquidity Vault Once supplied, you can manage your liquidity position under “My Position” and track its PnL. [Farm](https://docs.exponent.finance/farm) [Exponent 101 — Architecture Overview](https://docs.exponent.finance/protocol/protocol-mechanisms/exponent-101) Assistant Responses are generated using AI and may contain mistakes. --- # Exponent Yield Stripping - Exponent [Exponent home page![light logo](https://mintlify.s3.us-west-1.amazonaws.com/exponentlabs-7f112f90/logo/exponent-black.svg)![dark logo](https://mintlify.s3.us-west-1.amazonaws.com/exponentlabs-7f112f90/logo/exponent-white.svg)](https://docs.exponent.finance/) Search... ⌘KAsk AI Search... Navigation Protocol Mechanisms Exponent Yield Stripping [Documentation](https://docs.exponent.finance/starthere) [Security & Audits](https://docs.exponent.finance/security/security-practices) On this page * [Vault Module](https://docs.exponent.finance/protocol/protocol-mechanisms/exponent-yield-stripping#vault-module) In DeFi, yields can come in many forms: lending interest rates, trading fees, staking inflation, MEV rewards, arbitrage opportunities (e.g. funding rates), and even protocol incentives. In order to exchange DeFi yields, Exponent Yield Stripping separates the variable yield component from DeFi products, so that anyone can speculate on future yield on a fixed time horizon or sell it to get a fixed return on the position. It deposits user funds into an underlying protocol and leverages Exponent’s Solana Yields standard to support the position and differentiate between the accruing yield and the principal deposit. From this yield stripping mechanism, two assets are created and used for fixed and variable yield trading: * **Income Tokens**: These represent 1 unit of a principal asset deposited and locked into an underlying protocol for a set maturity. When Income tokens are minted, their exchange value for the principal asset is fixed. For instance, if 10 USDC deposited into Kamino are stripped into 10 Income Tokens and 10 yield tokens, the quantity Income Tokens own is worth 10 USDC. However, Income Tokens are only redeemable for the underlying after the market matures and don’t receive any accrued yield, which causes their price to trade below 10 USDC until maturity. * **Yield Tokens**: These represent shares of the yield produced by the principal asset in a DeFi product/position over time. The value of Yield Tokens matches the value of Income Tokens for the principal position. For example, if 25 Income Tokens are worth 25 SOL, then 25 yield tokens provide the yield produced by 25 SOL deposited into an underlying protocol. Simply put, what Exponent Yield Stripping does is similar to [bond stripping](https://www.investopedia.com/ask/answers/what-is-a-stripped-bond/) in traditional finance—where the principal and interest of bonds are separated—but for DeFi products. Income Tokens are in this sense similar to zero-coupon bonds, trading at a discount until maturity, while Yield Tokens are detached coupon payments that give exposure to the future interest payments. ### [​](https://docs.exponent.finance/protocol/protocol-mechanisms/exponent-yield-stripping#vault-module) Vault Module Yield stripping takes place when users’ deposits are placed into an Exponent vault’s escrow account for a specific market. Each yield market is initiated with a dedicated vault, set with its own parameters, which includes the maturity of the assets minted through this vault. This means every Income Token and Yield Tokens belonging to the same market originates from the same vault. An Exponent vault module manages the economics of Income Tokens and Yield Tokens. Its core functions include: 1. **Stripping**: Converts DeFi positions/products into separate Income Tokens and Yield Tokens and holds the principal assets deposited in escrow. 2. **Yield Distribution**: Enables holders of Yield Tokens to receive yield distribution from the underlying position/product, plus additional liquidity incentives, often referred to as _emissions_. 3. **Merging**: Recombines Income Tokens and Yield Tokens into the original locked position. After maturity, only Income Tokens are needed to redeem for full value (1:1) the assets deposited in the underlying protocol. The vault mints an equivalent amount of Income Tokens and Yield Tokens for the value of the tokenized position, denominated in the principal asset. For example, if 1 unit of deposit in a lending protocol is worth 1.2 USDC, then 1 position deposited in a yield stripping vault produces 1.2 Income Token and 1.2 Yield Tokens. This Vault module essentially manages the lifecycle of these yield derivative assets issued by the protocol, from creation through yield accrual to eventual recombination. It provides the infrastructure for users to interact with and benefit from various types of DeFi markets. [Standard for Solana Yields](https://docs.exponent.finance/protocol/protocol-mechanisms/solana-yields-standard) [Time-Dynamic AMM](https://docs.exponent.finance/protocol/protocol-mechanisms/time-dynamic-amm) Assistant Responses are generated using AI and may contain mistakes. --- # Deployed Programs - Exponent [Exponent home page![light logo](https://mintlify.s3.us-west-1.amazonaws.com/exponentlabs-7f112f90/logo/exponent-black.svg)![dark logo](https://mintlify.s3.us-west-1.amazonaws.com/exponentlabs-7f112f90/logo/exponent-white.svg)](https://docs.exponent.finance/) Search... ⌘KAsk AI Search... Navigation Security Deployed Programs [Documentation](https://docs.exponent.finance/starthere) [Security & Audits](https://docs.exponent.finance/security/security-practices) On this page * [Upgrade Authority Owner](https://docs.exponent.finance/security/deployed-programs#upgrade-authority-owner) Each Exponent program has been thoroughly [audited](https://docs.exponent.finance/security/audits) by multiple independent security firms. | Program Name | Description | Program ID | | --- | --- | --- | | Exponent Core | Exponent’s Yield Stripping mechanism and AMM | ExponentnaRg3CQbW6dqQNZKXp7gtZ9DGMp1cwC4HAS7 | | Exponent marginfi Standard | Tokenizes marginfi positions. | XPMfipyhcbq3DBvgvxkbZY7GekwmGNJLMD3wdiCkBc7 | | Exponent Kamino Lend Standard | Tokenizes Kamino Lend positions. | XPK1ndTK1xrgRg99ifvdPP1exrx8D1mRXTuxBkkroCx | | Exponent Jito Restaking Standard | Wraps Jito Restaking’s VRT for compatibility with Exponent’s yield stripping and AMM | XPJitopeUEhMZVF72CvswnwrS2U2akQvk5s26aEfWv2 | | Exponent Perena USD\* Standard | Wraps Perena USD\* for compatibility with Exponent’s yield stripping and AMM | XPerenaJPyvnjseLCn7rgzxFEum6zX1k89C13SPTyGZ | | Exponent Generic Standard | Wraps a variety of DeFi markets and yield-bearing tokens (e.g. LSTs) for compatibility with Exponent | XP1BRLn8eCYSygrd8er5P4GKdzqKbC3DLoSsS5UYVZy | ### [​](https://docs.exponent.finance/security/deployed-programs#upgrade-authority-owner) Upgrade Authority Owner All the deployed programs are governed by the Exponent multisig, which is managed by multiple core contributors. Learn more [here](https://docs.exponent.finance/security/security-practices#admin-control-under-multisig) . [Audits](https://docs.exponent.finance/security/audits) [Bug Bounty](https://docs.exponent.finance/security/bug-bounty) Assistant Responses are generated using AI and may contain mistakes. --- # Security Practices - Exponent [Exponent home page![light logo](https://mintlify.s3.us-west-1.amazonaws.com/exponentlabs-7f112f90/logo/exponent-black.svg)![dark logo](https://mintlify.s3.us-west-1.amazonaws.com/exponentlabs-7f112f90/logo/exponent-white.svg)](https://docs.exponent.finance/) Search... ⌘KAsk AI Search... Navigation Security Security Practices [Documentation](https://docs.exponent.finance/starthere) [Security & Audits](https://docs.exponent.finance/security/security-practices) On this page * [Unit tests](https://docs.exponent.finance/security/security-practices#unit-tests) * [Stress tests](https://docs.exponent.finance/security/security-practices#stress-tests) * [Security tests](https://docs.exponent.finance/security/security-practices#security-tests) * [Real-time Monitoring](https://docs.exponent.finance/security/security-practices#real-time-monitoring) * [Inflow/outflow limits](https://docs.exponent.finance/security/security-practices#inflow%2Foutflow-limits) * [Admin control under multisig](https://docs.exponent.finance/security/security-practices#admin-control-under-multisig) Exponent takes protocol security very seriously as it directly impacts users. Before releasing any program/product to the public on mainnet, Exponent’s core contributors take extensive precautions to reduce risks. More lines of code are often written for testing program security than for the program itself. Additionally, every major product launch or program upgrade undergoes third-party security reviews to catch any bugs or vulnerabilities that Exponent’s core contributors might have missed. All Exponent audits can be found [here](https://docs.exponent.finance/security/audits) . Here are a few of the several measures Exponent employs to ensure the protocol adheres to the strongest security practices in the industry: ### [​](https://docs.exponent.finance/security/security-practices#unit-tests) Unit tests Unit tests simulate regular user activities to ensure the programs function as intended. They help catch and resolve bugs early, with the Exponent core contributors running hundreds of scenarios against each piece of code. This also makes future updates safer, as unit tests quickly reveal if changes in one part of the system affect others. ### [​](https://docs.exponent.finance/security/security-practices#stress-tests) Stress tests Stress tests push the protocol to its limits under extreme conditions to assess how the Exponent protocol would perform during critical scenarios. This includes testing how the protocol behaves under high transaction volume, sudden liquidity shifts, or rapid changes in implied yields, for instance. ### [​](https://docs.exponent.finance/security/security-practices#security-tests) Security tests Exponent employs various types of security tests to assess the robustness and soundness of its programs: * _Penetration_ tests simulate potential malicious interactions with Exponent’s smart contracts/programs, verifying that the instructions fail when inputs deviate from the expected parameters. This ensures the protocol can withstand attack vectors and prevents unauthorized actions or unexpected behaviors. * _Integration_ tests evaluate the flow and economics of Exponent’s programs by simulating multiple scenarios across components. They ensure that interactions within the protocol work correctly and that aspects like yield calculations, token minting, and trading flows remain accurate under diverse conditions. ### [​](https://docs.exponent.finance/security/security-practices#real-time-monitoring) Real-time Monitoring Exponent constantly monitors onchain activity on the protocol to detect suspicious or anomalous behavior from potential attackers. This allows the core contributing team to proactively crush malicious attacks before they become serious. ### [​](https://docs.exponent.finance/security/security-practices#inflow%2Foutflow-limits) Inflow/outflow limits While testing, monitoring, and security audits provide robust protection, no protocol can be completely bulletproof. To add an additional layer of security for users, Exponent implements inflow and outflow limits for each yield market (mint, redeem, liquidity, claiming yield). They act as guardrails in the unlikely event of a compromise, preventing an attacker from draining the protocol or manipulating a market. These limits are calculated based on historical outflows and are designed not to interfere with regular user activity. ### [​](https://docs.exponent.finance/security/security-practices#admin-control-under-multisig) Admin control under multisig Like many DeFi protocols on Solana, Exponent has mutable code and adjustable protocol parameters (e.g. program upgrades, fee settings, new markets). Rather than relying on a single private key—which poses a security risk as its compromise could directly impact user funds and protocol integrity—Exponent’s admin parameters are governed by a multisig of multiple core contributors. This also mitigates risk of insider attacks. As the protocol matures, external ecosystem members will gradually be added to the multisig. For its multisig setup, Exponent uses Squads — the leading multisig infrastructure on Solana, which is formally verified and secures over $10B in value. [Audits](https://docs.exponent.finance/security/audits) Assistant Responses are generated using AI and may contain mistakes. --- # Careers - Exponent [Exponent home page![light logo](https://mintlify.s3.us-west-1.amazonaws.com/exponentlabs-7f112f90/logo/exponent-black.svg)![dark logo](https://mintlify.s3.us-west-1.amazonaws.com/exponentlabs-7f112f90/logo/exponent-white.svg)](https://docs.exponent.finance/) Search... ⌘KAsk AI Search... Navigation Resources Careers [Documentation](https://docs.exponent.finance/starthere) [Security & Audits](https://docs.exponent.finance/security/security-practices) Exponent is always on the lookout for talented engineers who love crypto and finance to join its team of contributors. If you crave autonomy and agency, share your background and some of your best work at team\[at\]exponentlabs.xyz, and we’ll get back to you shortly. Mention why you want to work at Exponent. [Protocol Fees](https://docs.exponent.finance/resources/protocol-fees) [Disclaimer](https://docs.exponent.finance/legal/disclaimer) Assistant Responses are generated using AI and may contain mistakes. --- # Time-Dynamic AMM - Exponent [Exponent home page![light logo](https://mintlify.s3.us-west-1.amazonaws.com/exponentlabs-7f112f90/logo/exponent-black.svg)![dark logo](https://mintlify.s3.us-west-1.amazonaws.com/exponentlabs-7f112f90/logo/exponent-white.svg)](https://docs.exponent.finance/) Search... ⌘KAsk AI Search... Navigation Protocol Mechanisms Time-Dynamic AMM [Documentation](https://docs.exponent.finance/starthere) [Security & Audits](https://docs.exponent.finance/security/security-practices) On this page * [Time-Dynamic Sensitivity](https://docs.exponent.finance/protocol/protocol-mechanisms/time-dynamic-amm#time-dynamic-sensitivity) * [Flash Swap](https://docs.exponent.finance/protocol/protocol-mechanisms/time-dynamic-amm#flash-swap) Exponent yield assets have maturities, inherently impacting their price in a way that traditional AMMs are not designed to accommodate, as they typically don’t handle assets that expire or depreciate at maturity. To enhance capital efficiency in trading Exponent yield markets and better manage impermanent loss, Exponent has developed a novel Time-Dynamic AMM specifically tailored for Solana assets with maturities. This AMM considers price ranges for maturing assets and dynamically concentrates the trading curve to optimize price execution. The AMM also includes a Flash Swap mechanism, inspired by [Pendle](https://github.com/pendle-finance/pendle-core-v2-public/blob/main/whitepapers/AMM.pdf) ’s design, allowing liquidity providers to supply liquidity for Income Tokens (fixed yield) and Yield Tokens with a single asset price exposure. All trades occur within a single market, resulting in increased trading volume and higher swap fees for liquidity providers. For capital efficiency and because Exponent’s AMM dynamically concentrates the liquidity as Income Tokens approach maturities, each AMM pool features Income Tokens paired with their underlying asset. With AMMs that use predefined formulas to allocate capital across a continuous spectrum of prices, pairing assets with others that are correlated by price is more efficient. When the paired assets’ prices are strongly correlated, the price curve can be tighter, significantly reducing price divergence and, consequently, impermanent loss. For example, an Income Token based on ‘marginfi SOL’ would be paired with marginfi SOL (SOL lent on marginfi). This pairing is further justified by the fact that yield from lent SOL is paid in SOL, making the yield component for Exponent’s Income Token naturally expressed in SOL. ### [​](https://docs.exponent.finance/protocol/protocol-mechanisms/time-dynamic-amm#time-dynamic-sensitivity) Time-Dynamic Sensitivity A unique aspect of Exponent’s AMM is its time sensitivity, which factors the time-dependencies of Exponent yield markets as they have maturities/expiries that could impact the capital value of liquidity providers’ funds as well as cause inefficient price impact for traders. As Income Tokens and Yield Tokens near maturity, market volatility contracts. At maturity, a Yield Token has no remaining yield to distribute, making its price essentially zero, while an Income Token—representing a claim on the principal—also stabilizes at a fixed redemption value. The further from maturity, the greater the risk and volatility tied to these duration assets. As such, the AMM gradually reduces trade sensitivity over time based on the maturity of the assets as well as yield accrued. Early in the maturity period, the curve is highly sensitive to trades since significant yield available. By maturity, however, trades have zero price impact since no further yield is distributed. By dynamically concentrating liquidity within a narrow range based on maturity, the AMM can capture higher trading volumes for liquidity providers and offer more optimal trade execution for traders. In addition to time sensitivity, Exponent’s AMM also considers time decay — the progressive decrease in value of Yield Tokens as they approach maturity and eventually reach zero. As a result, the AMM has no _active_ liquidity for Yield Tokens, while still allowing both variable and fixed yield traders to operate through a single liquidity pool. This is made possible by using a novel AMM mechanism called Flash Swap. ### [​](https://docs.exponent.finance/protocol/protocol-mechanisms/time-dynamic-amm#flash-swap) Flash Swap In an Exponent liquidity pool, Income Tokens are paired with the underlying asset (such as JitoSOL) deposited in the underlying protocol. This design allows swaps between Income Tokens and the underlying asset directly, not between Income Tokens and Yield Tokens. Since Income Tokens and Yield Tokens are derived from the same product, their prices are inherently correlated. Exponent leverages this relationship by using a single liquidity pool to support trading for both Income Tokens and Yield Tokens belonging to the same market. This single-pool design not only enables liquidity providers to earn from both fixed and variable yield trading but also simplifies liquidity management. Put simply, Income Tokens and Yield Tokens combined are worth 1 unit of the original principal deposit stripped through Exponent Yield Stripping. Therefore, when a user buys Income Tokens, it inversely affects the price of Yield Tokens, and vice versa. Exponent’s AMM uses this correlation to temporarily lend (flash lend) liquidity to the trader, making it more efficient for both liquidity providers, as they don’t need to deal with managing time decay for Yield Tokens, and for traders, who can tap into the liquidity of Income Tokens instead of having two separate pools. When a trader buys or sells Yield Tokens, the AMM borrows against the liquidity in the pool for the trade, and this “flash loan” briefly impacts the liquidity pool and the price of the yield markets: * **Buying Yield Tokens**: When a user buys Yield Tokens, the AMM deposits the user’s funds into the underlying protocol to mint Yield Tokens. During this process, Income Tokens are also minted and immediately sold for the underlying asset in the pool, repaying the liquidity used. This transaction impacts the price of Income Tokens as a result of the Yield Tokens purchase. * **Selling Yield Tokens**: When a user sells Yield Tokens, the AMM borrows an equivalent amount of Income Tokens from the pool. It then combines the Yield Tokens with the borrowed Income Tokens to redeem the underlying from the protocol. Part of the redeemed underlying is sold back in the pool to repay the borrowed Income Tokens, affecting the price of Income Tokens as a result of the Yield Tokens sale. In summary, although only Income Tokens and the underlying asset are held in the pool, this mechanism enables Exponent’s AMM to efficiently manage trades for both Income Tokens and Yield Tokens through a single liquidity pool, using flash swaps to provide instant liquidity for Yield Token trades. [Exponent Yield Stripping](https://docs.exponent.finance/protocol/protocol-mechanisms/exponent-yield-stripping) [Risks](https://docs.exponent.finance/resources/risks) Assistant Responses are generated using AI and may contain mistakes. --- # Protocol Fees - Exponent [Exponent home page![light logo](https://mintlify.s3.us-west-1.amazonaws.com/exponentlabs-7f112f90/logo/exponent-black.svg)![dark logo](https://mintlify.s3.us-west-1.amazonaws.com/exponentlabs-7f112f90/logo/exponent-white.svg)](https://docs.exponent.finance/) Search... ⌘KAsk AI Search... Navigation Resources Protocol Fees [Documentation](https://docs.exponent.finance/starthere) [Security & Audits](https://docs.exponent.finance/security/security-practices) On this page * [Yield Accrued](https://docs.exponent.finance/resources/protocol-fees#yield-accrued) * [AMM fees](https://docs.exponent.finance/resources/protocol-fees#amm-fees) The protocol has two main revenue sources: ### [​](https://docs.exponent.finance/resources/protocol-fees#yield-accrued) Yield Accrued Exponent collects a 5.5% fee on yield distributed to Yield Tokens (not from the initial investment). This fee is applied only to the yield earned, not upfront. For example, with an average yield of 10%, traders would earn approximately 9.45% net yield after fees. ### [​](https://docs.exponent.finance/resources/protocol-fees#amm-fees) AMM fees Like any AMM, trading through Exponent’s AMM incurs swap fees, which can be found in the details of the Income/Farm forms. 65% of the trading fees are distributed to liquidity providers. There are no fees deducted from the underlying yield or fixed yield generated by liquidity providers’ assets. Deposits and withdrawals do not incur protocol fees, but single asset operations that involve selling part of the pool may be subject to slippage and AMM fees. [Risks](https://docs.exponent.finance/resources/risks) [Careers](https://docs.exponent.finance/resources/careers) Assistant Responses are generated using AI and may contain mistakes. --- # Risks - Exponent [Exponent home page![light logo](https://mintlify.s3.us-west-1.amazonaws.com/exponentlabs-7f112f90/logo/exponent-black.svg)![dark logo](https://mintlify.s3.us-west-1.amazonaws.com/exponentlabs-7f112f90/logo/exponent-white.svg)](https://docs.exponent.finance/) Search... ⌘KAsk AI Search... Navigation Resources Risks [Documentation](https://docs.exponent.finance/starthere) [Security & Audits](https://docs.exponent.finance/security/security-practices) On this page * [Smart contract risks](https://docs.exponent.finance/resources/risks#smart-contract-risks) * [Underlying protocols](https://docs.exponent.finance/resources/risks#underlying-protocols) * [Liquidity](https://docs.exponent.finance/resources/risks#liquidity) * [Black Swan Events](https://docs.exponent.finance/resources/risks#black-swan-events) * [Declining value risk when yield trading](https://docs.exponent.finance/resources/risks#declining-value-risk-when-yield-trading) Like any DeFi protocol, using Exponent involves some risks for users. ### [​](https://docs.exponent.finance/resources/risks#smart-contract-risks) Smart contract risks Smart contracts powers blockchain applications like Exponent. While designed with security in mind, these self-executing programs can present risks: * Potential vulnerabilities despite security measures; * Integration risks with multiple protocols and yield-bearing assets; * Possible exploitation leading to loss of funds. **Transaction Immutability** * All blockchain transactions are permanent and cannot be reversed; * Errors in transactions cannot be undone; * Users must verify all transaction details before confirmation. ### [​](https://docs.exponent.finance/resources/risks#underlying-protocols) Underlying protocols An important aspect of Exponent is that every product/market offered is derived from other protocols and assets. This means that when operating on Exponent, users bear counterparty risks and should ensure they understand these underlying protocols. As such, Exponent can be seen as a “marketplace” that provides access to derivative assets/markets of DeFi products. Exponent does not own or manage these third-party protocols and contracts and consequently is not responsible for any funds lost due to exploits in these third-party contracts. ### [​](https://docs.exponent.finance/resources/risks#liquidity) **Liquidity** Each market on Exponent is powered by an AMM pool, supplied by liquidity providers. Liquidity shortages could prevent Exponent users from operating effectively before maturity, impacting the ability to exit a trade, for example. However, regardless of liquidity conditions: * Yield traders will always receive their yield and emissions. * Income token holders can always redeem the underlying asset at maturity. ### [​](https://docs.exponent.finance/resources/risks#black-swan-events) Black Swan Events By default, Exponent only lists markets from protocols it considers robust. Robust protocols are those that have undergone multiple audits, maintain strong security practices, and either have low complexity in their code or a strong track record. While most of Exponent’s yield markets generally cannot go negative in value—for instance, an LST cannot generate negative yield—there are cases where this could happen, such as on lending protocols where bad debt can occur and trigger socialize loss across users’ deposits. To address this, Exponent has mechanisms in place to handle socialized losses and protect the protocol’s economic integrity during rare black swan events. If a yield market starts generating negative yield, the protocol would temporarily halt yield distributions and pause certain actions like yield stripping. Full details on how the protocol would handle a black swan event can be found [here](https://docs.exponent.finance/resources/risks) . ### [​](https://docs.exponent.finance/resources/risks#declining-value-risk-when-yield-trading) Declining value risk when yield trading While not a protocol risk in itself, it is important for users to remember that trading floating/variable yields with maturities means that upon expiry those positions become worthless and go to zero—unlike regular assets (e.g. SOL), which always retain a market price. Traders need to keep this in mind when opening a position. As a general rule of thumb: as long as the implied APY at which the position is opened remains below the future average underlying APY, the position will be profitable. _Total Profit_ when trading yield shares can be calculated as _Total yield collected_ from yield shares - _cost of purchasing_ yield shares. [Time-Dynamic AMM](https://docs.exponent.finance/protocol/protocol-mechanisms/time-dynamic-amm) [Protocol Fees](https://docs.exponent.finance/resources/protocol-fees) Assistant Responses are generated using AI and may contain mistakes. --- # Exponent 101 — Architecture Overview - Exponent [Exponent home page![light logo](https://mintlify.s3.us-west-1.amazonaws.com/exponentlabs-7f112f90/logo/exponent-black.svg)![dark logo](https://mintlify.s3.us-west-1.amazonaws.com/exponentlabs-7f112f90/logo/exponent-white.svg)](https://docs.exponent.finance/) Search... ⌘KAsk AI Search... Navigation Protocol Mechanisms Exponent 101 — Architecture Overview [Documentation](https://docs.exponent.finance/starthere) [Security & Audits](https://docs.exponent.finance/security/security-practices) On this page * [Exponent 101 — Architecture Overview](https://docs.exponent.finance/protocol/protocol-mechanisms/exponent-101#exponent-101-%E2%80%94-architecture-overview) Exponent is a set of multiple programs on the Solana blockchain that powers the suite of products available on [exponent.finance](https://www.exponent.finance/) . Exponent protocol’s mechanisms bring new primitives to Solana DeFi, ranging from fixed income products, to a yield AMM for fixed-term assets, and yield trading. ### [​](https://docs.exponent.finance/protocol/protocol-mechanisms/exponent-101#exponent-101-%E2%80%94-architecture-overview) Exponent 101 — Architecture Overview Exponent has been built to enable users to exchange variable yields for fixed yields within Solana DeFi. To enable this, Exponent’s architecture features several mechanisms, each with their own characteristics. As a broad overview, the protocol features: * A [Standard for Solana Yields](https://docs.exponent.finance/protocol/protocol-mechanisms/liquid-yield-token-standard) implemented per yield market, wrapping DeFi products of underlying protocols for compatibility with Exponent’s yield stripping and AMM * [Exponent Yield Stripping](https://docs.exponent.finance/protocol/protocol-mechanisms/exponent-prism) - a mechanism similar to bond stripping in traditional finance, creating fixed-term assets from DeFi markets for yield trading * [Time-Dynamic AMM](https://docs.exponent.finance/protocol/protocol-mechanisms/time-dynamic-amm) : an automated market maker (AMM) specifically built for yield trading and assets with maturities created through Exponent Yield Stripping The core mechanisms behind Exponent, such as Exponent Yield Stripping or the Time-Dynamic AMM, are part of `exponent-core`, which has been [audited](https://docs.exponent.finance/security/audits) by multiple security firms. [Liquidity](https://docs.exponent.finance/liquidity) [Standard for Solana Yields](https://docs.exponent.finance/protocol/protocol-mechanisms/solana-yields-standard) Assistant Responses are generated using AI and may contain mistakes. ---