> For the complete documentation index, see [llms.txt](https://coinone-1.gitbook.io/coinone/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://coinone-1.gitbook.io/coinone/ri-ben-yu/products/perpetual-contract/untitled-5.md).

# VAMM

Our trading model is very different from other exchanges (including AMM-based exchanges). The focus is on:

 .The perpetual agreement does not use liquidity / does not require a liquidity provider.

 .The perpetual agreement is 100% based on AMM; no order book mechanism is required. 

The price on the chain reflects the transaction on the perpetual agreement-the price only causes slippage when opening or closing a position. 

Traders use collateral (USDT) to open long or short positions under a given asset. Every time a transaction is made, vAMM will calculate the buying or selling price in the same way as the price calculation in CoinOneSwap or other exchanges that use AMM.