How CSL Works

CSL runs synthetic perpetual markets on skin prices. Here is the full picture, from index price to settled PnL.

Synthetic perpetuals

A CSL market does not hold or trade the physical item. Instead, each market tracks an index price — the real market value of that skin — and lets you take a leveraged position against it:

• Long — you profit when the skin's price rises.
• Short — you profit when the skin's price falls.

Because positions are synthetic, there are no trade locks, no float inspections, no waiting for a buyer. You get pure exposure to the price.

Position lifecycle

1. Deposit collateral. Positions are margined in USDC.
2. Open. Pick a market, side and leverage. Your position size = collateral × leverage. A taker fee applies on the notional value.
3. Hold. Unrealized PnL moves tick-by-tick with the index price. Funding accrues hourly (see Funding & Fees).
4. Close. Close at any time; PnL is settled to your USDC balance. If the index reaches your liquidation price first, the position is liquidated (see Liquidations).

Worked example

You open a 10x long on AWP | Dragon Lore at $12,250 with $500 collateral:

Position size   = $500 × 10          = $5,000
Units           = $5,000 / $12,250   = 0.408 DL
Price +2%  →  PnL = 0.408 × $245     = +$100   (+20% ROE)
Price −2%  →  PnL                      = −$100   (−20% ROE)
Liquidation ≈ $12,250 × (1 − (1/10 − 0.5%)) = $11,086

Who is the counterparty?

In beta, CSL quotes markets against its own liquidity with position limits per market. Open interest caps, funding and liquidations keep exposure balanced. As volume grows, the roadmap moves toward pooled liquidity vaults — see Roadmap.