# About $MLP ## Overview MLP consists of an index of assets used for swaps and leverage trading. It can be minted using any index asset and burnt to redeem any index asset. The price for minting and redemption is calculated based on (total worth of assets in index including profits and losses of open positions) / (MLP supply). MLP token address (Polygon): [0x0d5665A2319526A117E68E38EBEA4610aA8298F8](https://polygonscan.com/token/0x0d5665A2319526A117E68E38EBEA4610aA8298F8)\ MLP token address (Cronos): [0x3a125824FE948Ba3769DCA8B1E20310D4c2E90f2](https://cronoscan.com/address/0x3a125824FE948Ba3769DCA8B1E20310D4c2E90f2) As MLP holders provide liquidity for leverage trading, they will make a profit when leverage traders make a loss and vice versa. Past P\&L data, MLP price chart and other stats can be viewed on (Polygon) and (Cronos) ## Minting and Redeeming **Minting MLP**

Key in the amount of MLP you'd like to purchase on:

Fees for buying MLP will vary based on which assets the index has less or more of, the Buy MLP page will show which assets have the lowest fee.
After buying your tokens, MLP can be used to further generate yield on farms available on and **Redeeming MLP**
Key in the amount of MLP you'd like to redeem at (Polygon). Note that there is a minimum holding time of 15 minutes after minting before you can redeem MLP tokens. ## Rebalancing The fees to mint MLP, burn MLP or to perform swaps will vary based on whether the action improves the balance of assets or reduces it. For example, if the index has a large percentage of ETH and a small percentage of USDC, actions which further increase the amount of ETH the index has will have a high fee while actions which reduces the amount of ETH the index has will have a low fee. The token weights can be seen on the Dashboard. Token weights are adjusted to help hedge MLP holders based on the open positions of traders. For example, if a lot of traders are long ETH, then ETH would have a higher token weight, if a lot of traders are short, then a higher token weight will be given to stablecoins. If token prices are increasing, then the price of MLP will increase as well, even if a lot of traders have a long position on the platform. The portion reserved for long positions can be treated as stable in terms of its USD value since if prices increase the profits from that portion will be used to pay traders, and if prices decrease, the losses of traders will keep the USD value of the reserve portion the same. If a lot of traders are short and larger weights are given to stablecoins, then MLP holders would have a synthetic exposure to the tokens being shorted, e.g. if ETH is being shorted then the price of MLP will decrease if the price of ETH decreases, if the price of ETH increases then the price of MLP will increase from the losses of the short positions. ## Risks #### Systematic Risk Systemic risk represents the risk connected to the complete failure of a [business](https://www.investopedia.com/terms/b/business.asp), a sector, an industry, a [financial institution](https://www.investopedia.com/terms/f/financialinstitution.asp), or the overall economy. It can also be used to describe small, specific problems, such as the security flaws for a bank account or website user information. Bigger, wider-reaching issues include a broad economic crisis sparked by a collapse in the financial system. #### Idiosyncratic Risk Idiosyncratic risk is a type of investment risk that is endemic to an individual asset (like a particular company's stock), a group of assets (like a particular sector), or in some cases a very specific asset class (like collateralized mortgage obligations). Idiosyncratic risk is also referred to as a [specific risk](https://www.investopedia.com/terms/s/specificrisk.asp) or [unsystematic risk](https://www.investopedia.com/terms/u/unsystematicrisk.asp). --- # Agent Instructions: Querying This Documentation If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question. Perform an HTTP GET request on the current page URL with the `ask` query parameter: ``` GET https://mmfinance.gitbook.io/madmex-spot-and-perps/about-usdmlp.md?ask= ``` The question should be specific, self-contained, and written in natural language. The response will contain a direct answer to the question and relevant excerpts and sources from the documentation. Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.