Market operators
A market's operator changes its settings only after the longest junior exit notice plus a day. LP shares carry no vote.
Updated Nov 9, 2026
The market deployer starts as its operator. The operator controls the market within one fixed set of Dusk limits and receives its configured share of base interest. It can be a wallet or an external governance program.
LP balances do not grant authority in the core program.
The operator can appoint an optional manager to manage market settings. A manager cannot transfer ownership, appoint managers or change revenue terms. Revenue remains assigned to the operator's recorded recipient.
What can be changed
| Family | Operator or manager control | Protection |
|---|---|---|
| Fees | Trading fees, dynamic coefficients, fee asset and compounding | Combined fee components remain within the protocol's 50% gross-input ceiling; launch terms cannot be restarted after launch |
| Concentration | Amplification, core and fade widths, including constant-product mode | Announced ramps take at least 24 hours; positive targets are bounded to 0.1×–10× their starting values, with explicit zero-width transitions and price/value guards |
| Interest | Coverage and utilization bands and the response half-life | Fixed 1% base APR floor; no adjustable economic APR cap; initial APR is creation-only; half-life 12 hours–30 days; no bundle executes while either side's utilization is at or above 80% |
| EMA half-lives | Price, directional price, depth and center signals | One minute–12 hours; the separate borrowing-controller half-life uses days |
| Daily borrow budget | New public borrowing relative to conservative depth | At most 30% per protocol day |
| Automatic centering | Adaptive adjustment step | Concentrated markets retain the controller; each candidate must pass its funding and value checks |
| Tranche income | Junior share of LP income | 10–90%; junior request fee remains fixed at 50 bps and liquidation fee at 300 bps |
The oracle provider and feed are selected at creation and cannot be replaced by the operator or manager. Funded losses reach junior capital first and senior capital only after junior is exhausted.
One pending bundle
- Announce. The operator or manager commits exact target values, conditions and a verifiable rationale. A market has one pending bundle. Replacing it restarts the full notice. A manager can replace only its own bundle.
- Notice. Every bundle waits the maximum junior exit notice plus one day. LPs can request or exercise exits under the normal rules. Cash availability, utilization and existing exit-ticket windows still matter; a timelock does not guarantee immediate liquidity.
- Execute. After notice, anyone can execute a settings bundle within its seven-day execution window. Authority, revisions, digest and risk limits are checked again. All changes apply atomically; concentration targets begin their guarded ramps.
- Cancel or clean up. The operator can cancel a pending bundle; a manager can cancel its own. Executed, stale or expired proposal accounts can be closed, returning rent to the recorded payer.
Managers and ownership
Appointing or replacing a manager uses the full notice. The operator can remove a manager immediately, which also invalidates that manager's pending bundle. An operator-authored pending bundle is preserved.
Ownership transfer uses the full notice and requires the successor to sign acceptance. Every handoff clears the manager. The successor can appoint a new manager separately.
Renouncing operator authority is permanent in the core program and clears the manager; there is no LP vote that can restore authority.
An external governance layer can hold operator authority and decide its actions through proposals, token voting or futarchy. Those mechanisms live outside Dusk core and must satisfy the same core limits and notice.
Operator and protocol revenue
The deployer chooses an operator share between 0% and 50% of base interest. The operator can change it within that global range after full notice. Operators receive no swap revenue.
The protocol interest markup is controlled globally by the FutarchyAuthority and added on top of base interest. For example, with $100 base interest, a 30% operator share and a $10 protocol markup, the borrower pays $110: LPs receive $70, the operator $30 and the protocol $10. A global markup update activates after each market first checkpoints elapsed interest at its previous markup.
Operator revenue is earned on collection. If ownership changes before a borrower pays, the new recipient earns the operator fee when payment is collected. Fees already collected remain claimable by their recorded recipient, including after a handoff.
Protocol swap-fee allocations and interest markup accumulate in their existing market revenue lanes. Protocol auctions convert that revenue into accepted assets for the configured protocol destinations. Pool operators cannot change global protocol revenue settings.
Referral revenue sharing
The FutarchyAuthority can list referral partners with a share of protocol interest revenue. A partner and its share bind to a borrow or leverage position when it opens.
The referral cut comes from protocol revenue and does not add a borrower charge or reduce the LP allocation. Partners claim collected revenue per market and asset on the Referral page.
Protocol-level governance
The global FutarchyAuthority is separate from a market’s operator. Its authority may be the team or protocol governance; it controls global protocol fees and recipients, referrals and protocol auctions.
A separate emergency key fixed in the program controls reduce-only mode. A market operator cannot bypass those controls. An external governance program may independently hold a market’s operator authority.
Related
- Junior LP: first-loss capital, income and exit notice.
- Borrowing and rates: coverage-driven interest.
- Market and protocol administration reference: current instructions.