How can I try 10101?
10101 is a mobile application. It is not possible to access it from your browser.
10101 is pronounced "ten ten one", and it means 21 in binary. Just a pun! There will never be more than 21 million bitcoins!
What is 10101?
It's a self-custody-first Bitcoin app that includes: A Bitcoin wallet for sending and receiving sats on-chain, and the ability to trade financial derivatives directly from it, thanks to cutting-edge Discreet Log Contracts (DLCs) technology.
Once your wallet has been funded, the application will allow you to open an order directly from your wallet, thus opening your DLC Channel
Will 10101 manage the funds for me?
No, at no time will 10101 hold your bitcoin.
Our application makes a point of respecting and educating users in the principles of self-custody: you hold your own keys, you remain responsible for your wallet and funds, and you retain full control throughout your experience.
That's why you need to make sure you back up your recovery phrase and keep it safe.
What's the point of the recovery phrase?
Your recovery phrase (sometimes called "seed") is the only way to redeem your funds. If you've deleted the app or lost the data on your phone, you will not be able to access your funds without it. We will be unable to assist you either.
You absolutely must save it and keep it in a safe place.
In the case of 10101, this backup will enable you to restore your funds within the app from both your on-chain and off-chain balance, as well as your transaction history and open orders.
In the worst case scenario, you will be able to close your DLC channel after using your recovery phrase.
Do I have to run a node separately to use 10101?
You don't have to run your own node to use our app, however, it will soon™️ be possible to connect your own node, in order to be independent and sovereign in broadcasting and receiving your transactions from your device.
On-chain is a term used to designate the operations taking place on the traditional Bitcoin network: It is used for its high level of security and verifiability, and allows large amounts of money to be sent and received for a fee. Your on-chain balance
Off-chain is used to describe every operations taking place between actors inside a DLC Channel (just like Lightning, or any layer 2 protocol). While inheriting of the security of the base protocol, it allows to operate in a fast way and at very low cost, as long as the channel is kept open. By closing a channel, a settlement operation will take place on-chain, incurring fees.
In the case of 10101, you can close a position without having to close your channel. Your funds will then be displayed on your off-chain balance, allowing you to operate further trades at your convenience. At any time, you can withdraw your funds to your on-chain balance by closing your DLC Channel
How is it possible to trade directly from my wallet, without a platform?
This is made possible thanks to Discreet Log Contracts (DLCs).
A DLC is a multisig transaction output funded by two parties, which can be unilaterally spent by either one according to a future event external to the blockchain. One or more oracles are used as trusted, oblivious third parties, as they attest to the outcome of the event and determine how the funds will be split.
Applied to trading using 10101, a DLC is set up with the user providing part of the collateral and their counterparty in the trade providing the rest. In the case of BTCUSD perpetual swaps, the event external to the blockchain is the price of Bitcoin. The oracles eventually attest to the price and, depending on that value, the funds in the DLC can be split in a particular way, with the user realizing their PNL.
Off-chain DLCs can be seen as an additional layer built on top of Bitcoin.
How is the DLC channel funded?
DLC channels are bilaterally funded during the first trade order.
We, on our side, will always put the necessary margin to cover the quantity (number of contracts) of your trade with a x2 leverage.
- If the opening price is $40,000 and you open a $2,000 position with a x4 leverage, your margin is 0.0125BTC, ours is 0.025BTC. Total channel value : 0.037BTC
- If the opening price is $40,000 and you open a $2,000 position with a x1 leverage, your margin is 0.05BTC, ours is 0.025BTC. Total channel value : 0.075BTC
- If the opening price is $40,000 and you open a $2,000 position with a x2 leverage, the channel will be perfectly balanced as both parties will have a 0.025BTC margin, for a total channel value of 0.05BTC
Conclusion : your margin in BTC will depend on the opening price, quantity, and on the leverage you choose. Ours will always remain relative to the opening price and quantity you have selected
As your first trade defines the configuration of your channel, it's important to take the above elements into account when assessing your payout expectations (our maring minus the order matchinng fees).
If this explanation isn't clear enough for you, please let us know!
We'll be publishing a detailed article on the financing of DLC channels and trading orders shortly.
How can I open a DLC Channel?
By creating your first order, you will automatically create your DLC Channel with 10101. You can close your position, but your channel will remain open until you decide to close it.
Depending on the size of this channel, you'll be able to open larger or smaller positions in the trading section, or hold more or less synthetic currency in your wallet (to be released)
Why my position has an expiry?
In an ideal world there would be no expiry, but it is the only way that we can safely simulate a perpetual swap using DLCs. DLCs are open until the oracle attests to the outcome of an event (attestation time). That's why we have a rollover protocol which replaces the old DLC with a new one with an attestation time further in the future.
Positions always expire on Sunday, 15:00 CET, and therefore have a maximum expiration time of one week.
You, as the trader can decide to close your position anytime by clicking Close position.
What if I don't want my position to expire after 1 week?
A position has an expiry of 1 week, i.e. it always expires on Sunday, 15:00 CET.
We introduced a quick and simple way to renew it, codenamed rollover weekends: If you come online between Friday, 15:00 CET and Sunday, 15:00 CET your position extends for another week.
If you've accidentally rolled over a position you didn't want to keep open, you can decide to close your position at any time by clicking on Close position.
For the time being, renewing a position is free of charge, but a funding rate will be introduced eventually.
Can I open several positions at the same time?
It is not yet possible to open several different positions. However, it is in our plans to make it possible to resize your position at any time, without changing the leverage.
If you want to resize your position beyond the limits of your DLC Channel, you would have to resize your channel (see next section).
Can I resize my DLC Channel (splicing)?
No, but definitely in the future. Splicing would be more cost-effective than closing and reopening a channel
Why can I not trade with my full off-chain balance?
You will not be able to open positions covering your entire off-chain balance, as you will need to keep a reserve.
Part of this reserve must remain so that on-chain transaction fees can be covered, enabling you to recover your funds in any worst-case scenario.
Can I fund my 10101 wallet using Lightning?
From version 1.8.0, it's no longer possible to fund your wallet nor your DLC Channel via Lightning. However, we are working on reintroducing this feature. Stay tuned!
As an Android user, I don't have access to the Play Store. How can I try out the application anyway?
We have a releases page on GitHub: https://github.com/get10101/10101/releases
You can find the APK corresponding to the architecture of your device and the associated signature files.
I need help / troubleshooting
If you use our TestFlight app for iOS, you can send us a crash report directly from your app, or from TestFlight. More details here: https://testflight.apple.com/#giving-feedback
Don't hesitate to get in touch with our team, who will be able to help you and answer your questions on our dedicated Telegram support channel. If possible, prepare your application logs for us to investigate.
I need guidance
You can count on our team and on the community!
Feel free to join our social channels and get in touch!