FUNCTOR

Quantum Deck Launch app

Tech

Functor is a layer-1 blockchain built for trading

The chain has three parts. FunctorCore runs the exchange: order books, margin, funding and liquidations. Consensus orders blocks, and a bridge moves USDC in and out.

Architecture

Architecture

01 · Built

FunctorCore

The exchange state machine, written in Rust. It covers order books, margin, funding, liquidations, the launch market and the FCTR ledger. All arithmetic is in integers, so every validator computes the same result.

02 · Planned

Consensus

Byzantine fault tolerant consensus using Malachite, a Rust implementation of Tendermint. The public testnet starts with four validators. Staking opens validation to FCTR holders at genesis.

03 · Planned

Bridge

USDC deposits and withdrawals through Arbitrum. Validators sign withdrawals, and each withdrawal has a dispute period. No admin key can move bridged funds.

Market launches

Market launches

A new market opens with a call auction. Orders must be fully funded, and all matched orders fill at a single price. Arrival time does not affect priority, so bots and split wallets gain nothing.

The opening auction ends at a random time. Orders cannot be cancelled in the final phase.
For the first days, each block clears as one batch at one price.
A collar limits how far the price can move in each batch.
In continuous trading, prices cannot print outside a moving band. If demand pushes through the band, the market pauses and reopens with an auction.
Holders can always sell their full balance.

Options and risk

Options and risk

The options engine is based on the founder's research at the University of Oxford's Department of Computer Science: a compositional, category-theoretic library for pricing derivatives. Structures are built from simple contracts, and the maximum loss of each structure is computed exactly.

Pricing models include clustered price jumps (a Hawkes process). For deep out-of-the-money puts, Black-Scholes can misprice by a factor of ten.
Options are fully collateralized. Each position locks its maximum loss, so options are never liquidated.
Perpetuals have a withdrawal rule, open interest caps, a limit on open interest growth, a maximum order size and an oracle price band.
Planned: margin requirements that increase with jump risk, and auto-deleveraging that leaves hedged positions alone.

Funding

How perpetual funding is paid

Funding follows Hyperliquid's rules, and you pay or receive it every hour at the oracle price. The chain does these sums in whole numbers (parts per billion), because otherwise two validators could round differently and end up disagreeing about your balance.

The same sums in 92 seconds, on a $10,000 position. Also on YouTube.

The 8-hour rate is F = P + clamp(I − P, −0.05%, +0.05%), where P is the average premium of the impact bid and ask over the oracle price and I is the interest rate of 0.01% per 8 hours.
Every hour your position pays or receives F/8 multiplied by its size and by the oracle price, and when the rate is positive it's the longs who pay the shorts. The hourly rate is capped at 4%, which should only come into play in a very disorderly market.
In a calm market P usually stays close enough to I that F comes out at exactly 0.01%, so you'd pay 0.00125% an hour. On a $10,000 position that's $0.125 an hour, $3 a day and about $1,095 over a year.
If the impact bid sits 1% above the oracle, the clamp stops the correction at 0.05%, so F becomes 1% − 0.05% = 0.95% per 8 hours, or 0.11875% an hour, and the same $10,000 position would then be paying $11.875 an hour, which works out at $285 a day.
Rounding goes the protocol's way to the micro-USDC, so whoever pays rounds up and whoever receives rounds down.

Post-quantum

Post-quantum, where it matters first

Checked on every deploy, not just stated.

Every connection to functorfund.com and api.functorfund.com uses post-quantum key exchange (X25519 combined with ML-KEM-768) whenever the browser supports it, as current Chrome, Edge and Firefox do. Traffic recorded today can't be decrypted by a future quantum computer.
Quantum Core releases are signed with ML-DSA-65, a post-quantum signature (NIST FIPS 204).
Testnet accounts can register an ML-DSA-44 key (NIST FIPS 204) on the Security page. After that, every withdrawal, transfer and session-key approval needs both the wallet's ECDSA signature and the post-quantum one over the same message, and the chain itself refuses it otherwise. The key is checked against NIST's official test vectors and three independent implementations.
Session keys, the keys that trade without a wallet popup, expire: the chain itself refuses them after their time (the app approves them for 7 days, at most 180), and they can be revoked at once.
Next: validators that sign with ML-DSA-65 from their first block (see the roadmap).

Status

Status

Each module has scenario tests, property tests on randomly generated cases, and mutation tests.

Module	Scope	Status
Order book	Price-time priority; limit, IOC and post-only orders; self-trade prevention	Built and tested
Clearinghouse	Accounts, margin and fees. Liquidations go to the order book first, then the liquidity vault, then auto-deleveraging (how the liquidation price is worked out)	Built and tested
Perpetual risk limits	Withdrawal rule, open interest caps and growth limit, maximum order size, oracle band	Built and tested
Launch market	Opening auction, batch auctions, collar, price bands, halts	Built and tested
FCTR ledger	Fixed supply, founder vesting, protocol accounts	Built and tested
Funding	Paid hourly using the standard perpetual funding formula, settled at the oracle price (how it works)	Built and tested
Oracle and mark price	Validator price submissions, stake-weighted median with a two-thirds quorum, Hyperliquid's mark price	Built and tested
Block execution	Hyperliquid's action order, a state root every block, two nodes agreeing byte for byte	Built and tested
Vaults	Two FLP vaults split by risk; user vaults with a 10% profit share above each depositor's cost	Live on the testnet
Node, API and limits	EIP-712 signatures with session keys, Hyperliquid's request and open-order limits, an order-level book feed, generated API docs	Live on the testnet
Explorer and replay	Every block, transaction and account; anyone can re-execute the published blocks and check every state root	Live on the testnet
Post-quantum accounts	ML-DSA-44 keys in the state root; wallet actions of a protected account need both signatures	Live on the testnet
Consensus, four validators	Malachite, ML-DSA-65 validator signatures, open-source node	Next (Jan–Mar 2027)

352 chain tests pass as of 21 Oct 2026. The node will be open source from the public testnet onward.

Comparison

Comparison with Hyperliquid

	Hyperliquid (today)	Functor (planned)
Layer-1 with an onchain order book	Yes	Yes
Community liquidity vault	Yes (HLP)	Yes, split by risk tier
No VC allocation; fees buy back the token	Yes	Yes
Vanilla options	No. Outcome contracts only (HIP-4)	Yes
Auction to open new markets	No	Yes
Node software	Closed source (source)	Open source
Liquidity and users	Established	None yet. Functor is pre-testnet