> For the complete documentation index, see [llms.txt](https://whitepaper-23.gitbook.io/zenchain/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://whitepaper-23.gitbook.io/zenchain/zenchain-bot/risk-insight-on-tokens/zenchain-assessment.md).

# ZenChain  Assessment

### Is ZenChain a PvP protocol like GMX? Why not?

* When users enter a trade (e.g. long BTC), the BTC is actually purchased on the liquid secondary market via decentralized exchanges. This makes ZenChain a non-PvP protocol, and Lenders (liquidity providers) on ZenChain are not a trade counterparty to Traders. 
* In contrast, liquidity providers on PvP protocols absorb capital losses in the event that traders are net profitable. The PvP model effectively pits liquidity providers against traders in a zero-sum game within the protocol.
* A non-PvP design removes a key conflict of interest between Lenders and Traders on ZenChain , because it allows for **win-win outcomes** to take place. **Traders can be net profitable on their PnL, with Lenders earning their deserved yield at the same time.**

### What networks are supported?

* ZenChain is deploying on Ethereum as the first supported network. 
* After Ethereum, ZenChain  aim to support EVM-compatible networks such as BNB Chain and Polygon, and also new upcoming networks such as Scroll , Linea and Pulse-Chain
* Each network deployment is native within its own chain, and is expected to have its own utility token within the respective network.

## For Traders

### What are the trading fees for Traders?

* Traders are charged a swap fee of 0.1% on executed trades and a 7% performance fee on reward tokens generated by the trading collateral. 

### How do Traders earn yield on collateral?

* Traders are required to deposit collateral before trading.
* Collateral deposited is redeployed to earn reward tokens in other DeFi protocols such as Convex, Aave or Stargate. 
* Traders can claim their reward tokens earned anytime within the ZenChain platform.

### How is the value of collateral calculated?

* Chain-link USD-denominated price oracles are used in calculating collateral values. 

### Can I use isolated margin instead of cross margin?

* Users can use multiple wallets to "isolate" the collateral, creating the same effect as isolated margin. 

### Can I withdraw my collateral if I have trading losses?

* Traders with a net negative profit and loss (PNL) account will be capped on collateral withdrawals. 
* Traders can withdraw their collateral in full after repaying debt to the lending pools.

### When will a Trader be liquidated?

* Traders' trade portfolio and collateral are fully liquidated if trading losses exceed the liquidation threshold.

##