Liquidity providers deposit funds into HMX and receive trading fees from traders (supply-side fees).

HMX is a non-custodial exchange for perpetual contracts built on Arbitrum. HMX was founded by Shu Wei, Rockman, and Taoree and was launched in 2022.

HMX tokenholders own and govern the protocol. They currently take a cut of the total trading fees paid by traders (revenue). HMX's investors include Coral DeFi, Compound Capital Partners, Cryptomind, etc.

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Derivative exchanges

# HMX Notional trading volume Methodology

## 1. Overview

HMX notional trading volume measures the total USD-denominated volume of perpetual trading activity on the HMX protocol, including both regular trading and liquidations. This metric captures the size of position changes (increases, decreases, and forced liquidations) to quantify overall trading activity and market utilization on the platform.

## 2. Data sources

The calculation relies on parsed Arbitrum event logs from HMX protocol smart contracts:
- **Trading events**: HMX TradeService `LogIncreasePosition` and `LogDecreasePosition` events that capture position size changes during regular trading
- **Liquidation events**: HMX LiquidationService `LogLiquidationPosition` events that capture forced position closures
- **Market configuration**: HMX ConfigStorage `LogAddMarketConfig` events that provide market metadata and symbol mappings

All volume data is natively USD-denominated in the protocol events with 30 decimal precision, eliminating the need for external price conversion.

## 3. Step-by-step calculation

### Component A: Regular trading volume
- **Purpose**: Extracts volume from regular perpetual trading position changes
- **Logic**: Processes `LogIncreasePosition` and `LogDecreasePosition` events from HMX TradeService on Arbitrum. For increase events, extracts the `increasedSize` parameter; for decrease events, extracts the `decreasedSize` parameter. Converts values from 30 decimal precision to standard format by dividing by 10^30. Takes absolute values to ensure positive volume amounts regardless of position direction.
- **Key fields**: `marketIndex` for market identification, `increasedSize`/`decreasedSize` for volume amounts, `address` for account tracking, and standard blockchain metadata like `block_timestamp` and `transaction_hash`

### Component B: Liquidation volume  
- **Purpose**: Captures volume from forced position liquidations
- **Logic**: Processes `LogLiquidationPosition` events from HMX LiquidationService on Arbitrum. Extracts the `size` parameter representing the liquidated position size. Applies the same decimal conversion (division by 10^30) and absolute value transformation as regular trading volume.
- **Key fields**: `marketIndex` for market identification, `size` for liquidated volume amount, `address` for affected account, and blockchain transaction metadata

### Component C: Market dimension enrichment
- **Purpose**: Maps market indices to human-readable market symbols
- **Logic**: Processes `LogAddMarketConfig` events from HMX ConfigStorage to build a lookup table. Decodes hex-encoded `assetId` values to extract market symbols like BTC, ETH. Creates mapping between numerical `market_index` values used in trading events and descriptive market names.
- **Key fields**: `index` as market identifier and decoded `assetId` as market symbol

### Final aggregation
- **Combining components**: Trading volume and liquidation volume are combined using a union operation, creating a comprehensive view of all position size changes on the protocol. Both volume types follow identical data structure and processing logic.
- **Market enrichment**: Combined volume data is left-joined with market dimension data using `market_index` as the key. Missing market mappings default to 'Unknown' to handle cases where new markets haven't been added to the dimension table.
- **Time aggregation**: Data is aggregated to daily boundaries using timestamp truncation to day level. All volume amounts are summed by day, account, market, and business classification dimensions.
- **Final calculation**: The metric represents the sum of absolute USD values of all position changes (increases, decreases, and liquidations) per day, providing a comprehensive measure of trading activity volume on HMX protocol.

*This methodology was automatically generated by Token Terminal's methodology analyzer.*

Total USD value of derivative contracts executed on the protocol.

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Notional trading volume

Notional trading volume

Competitive landscape

Chain breakdown