👐Open Interest (OI) & Available Liquidity

Two vital metrics on Vibe are Open Interest (OI) and Available Liquidity, offering insights into overall market health and trader participation.

• Open Interest (OI) Represents the total value of active perpetual contracts. Higher OI implies more participation and may indicate stronger trends.

• Available Liquidity Reflects how much liquidity solvers are currently offering. Vibe itself does not set these limits; solver availability can expand or contract based on market conditions.

Understanding Open Interest (OI)

OI represents the total value of active perpetual contracts that remain unsettled. OI is determined by the deposits made by solvers and their trading capacity.

As the current OI nears the Available Liquidty, it indicates high market activity but may limit new trades until existing positions are closed.

Interpreting OI

• Price Up + OI Up → Strong bullish move.

• Price Down + OI Up → Strong bearish move.

• Price Up + OI Down → Weak bullish move.

• Price Down + OI Down → Weak bearish move.

• A sudden OI spike after a correction may indicate dip-buying but doesn’t guarantee a reversal.

Trading Examples

• High OI & Market Entry A surge in OI for BTC/USDC might lead a trader to open a long position, expecting a continued bullish move.

• Decreasing OI & Position Adjustment A drop in OI on ETH/USDC might signal traders closing positions, prompting risk-averse traders to lighten up or close longs.

• OI & Volume Divergence Growing OI but falling volume on LTC/USDC can suggest weakening momentum, causing a trader to wait for clearer signals.

By tracking OI and Available Liquidity, you can gauge whether the market is nearing capacity for new positions and plan accordingly.