Morphing

Turn locked PHI into exposure to another asset without selling it, priced by the oracle and the lock fee; on Final Chain, opening with it.

Last updated 2026-09-03 · maintained in the Final Wiki

#The idea

You lock PHI and choose a morphed form: an exposure to another asset, priced by the protocol's oracle. The exposure can be long or short — a price exposure to any asset can be negative — and carries leverage bounded by the per-asset cap the asset registry sets. Your PHI stays locked as the collateral of either direction; the morphed position tracks the chosen asset. Unmorphing returns you to PHI at the current mark. Nothing is sold on a market, so there is no slippage and no liquidity provider between you and the price.

#How it is priced

  • A lock fee accrues while the position is open: PHI locked × time, at the base rate of the morphed form's liquidity class (0.10 % for majors, 0.20 % mid, 0.40 % long tail, per year).
  • Every state change (morph, unmorph, change of form) pays the state plane's fixed write floor of USD 0.10.
  • Marks come from the oracle's time-weighted prices, never a spot read.
  • The particle ladder discounts the lock fee like any service fee.

#Rules

  • Only locked PHI can be morphed, and morphed PHI counts toward your tier.
  • All you can lose is what you morphed. Leverage scales the speed of a move, never the size of the risk: a position meets its barrier when the move consumes the PHI it morphed and loses exactly that PHI, no more, and no debt can follow you. A position that reaches its barrier is closed; closing before it settles at the mark and keeps the remainder.
  • A morphed position is a record on the state plane — the Pre-Final Chain today, Final Chain at release, every position carried over — not a token you hold on an execution chain, until vAssets and the Liquidity Cloud make it spendable there.
  • Positions can be scheduled and gated like any intent.

#Status

Morphing runs on the Pre-Final Chain now and moves to Final Chain at its launch, with every position carried over. Together with vAssets it becomes the basis of the Liquidity Cloud.

#See also

Fees and PHI · vAssets · Liquidity Cloud