> For the complete documentation index, see [llms.txt](https://myxfinance.gitbook.io/myx.finance-v2/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://myxfinance.gitbook.io/myx.finance-v2/trader-guide/trading-rules/profit-lock.md). # Profit Lock ### Overview In lower-liquidity or more manipulation-sensitive markets, MYX may apply a **Profit Lock**. A Profit Lock means that certain profits are not immediately withdrawable, even if they are already recognized economically by the protocol. The purpose is to prevent traders from generating profit through short-term price distortion and then extracting that profit before the market can normalize or be reviewed. ### Why Profit Lock Exists Long-tail and lower-quality markets are more vulnerable to manipulation. In those markets, an attacker may try to: * distort price * build or unwind positions at artificially favorable prices * generate short-term profit * extract that profit before the market returns to fair conditions Profit Lock is designed to break that pattern. Even if profit is generated, it may remain temporarily locked before it becomes freely withdrawable. This gives LPs and the protocol time to review whether the profit came from legitimate trading or from manipulation. ### How Profit Lock Works If Profit Lock applies to a market, profits generated in that market do not automatically become free collateral everywhere. Instead, those profits are placed into a locked balance for that market. A key rule is: > Whenever new profit is generated in the same market, the Profit Lock timer refreshes. This means the lock is not a one-time countdown from the first profit event. It is rolling. Profit only becomes fully unlocked once there has been **no new profit generated in the same market for a continuous period longer than the configured lock period**. In practical terms: * if the lock period is 4 hours, and new profit keeps being generated every hour, the lock continues refreshing * profit only fully unlocks after the position has stopped generating new profit in that market for longer than the configured lock period ### What Locked Profit Can Still Do Profit Lock is **not** a full freeze. Locked profit can still be used **inside the same market**. This means it can continue to function as margin for that market and can support continued trading within that same market. However: > Locked profit cannot be used as collateral for other markets. So a trader may still manage or maintain positions in the same market using that locked value, but cannot immediately export that value into another market or freely withdraw it. Profit Lock restricts **cross-market portability and withdrawal**, not all in-market functionality. ### LP Appeal Rights During Profit Lock During the Profit Lock period, LPs may appeal profits they believe were generated through manipulation. To submit an appeal, the LP must post **LP collateral equal to 3,000 USD** as a bond. If an appeal is filed while the profit is still locked: * the locked profit does **not** unlock on its normal timer * the lock is extended until the appeal process is fully resolved This means profit remains unavailable for withdrawal until the protocol determines whether it should be released or clawed back. ### Appeal Review and Counter-Appeal An appeal is not a unilateral confiscation. The appeal enters the protocol’s dispute process, which may involve: * challenge submission * keeper review or voting * counter-appeal or response mechanisms * final release or clawback of the locked profit If the appeal succeeds, the suspicious profit may be recovered rather than released to the trader. ### Appeal Integrity and Penalties The appeal system is designed to protect LPs, but it cannot be used abusively. If an appeal is found to be: * repetitive * malicious * clearly unfounded * or otherwise abusive the posted LP bond may be **forfeited**. This ensures that LPs have real economic responsibility when challenging profits, and that the appeal process remains credible for both sides. So the system is balanced on both sides: * traders cannot easily extract manipulated profit * LPs cannot file frivolous appeals at zero cost ### Clear Rule for Traders MYX does not allow traders to profit from intentionally manipulating price. If you attempt to create profit through: * artificial price distortion * abusive short-term extraction * manipulation of fragile market conditions that profit may be: * locked * challenged * and clawed back during the Profit Lock period This is an explicit part of MYX’s market design. ### Summary Profit Lock is designed to make manipulation economically unattractive. It works by: * delaying the extraction of profits in sensitive markets * refreshing the lock when new profit continues to be generated * allowing LPs to challenge suspicious gains * extending the lock while a valid appeal is ongoing * requiring a 3,000 USD LP bond for appeals * penalizing malicious or repetitive appeals * preventing locked profit from being used as collateral across other markets For legitimate traders, this is a conditional settlement restriction. For manipulative traders, it is a direct anti-extraction safeguard.