How to Use TPWallet for Synthetic Assets and Derivatives

TPWallet itself does not run an exchange or issue derivatives. It acts as a self-custody signing interface: you connect your wallet to on-chain synthetic asset protocols and perpetual/derivatives DApps through the built-in DApp browser, sign transactions locally, and keep collateral and positions under your own keys. Synthetic assets track price exposure (crypto, commodities, forex, tokenized stocks) without holding the underlying; derivatives include perpetual swaps, futures, options and prediction markets.

Prerequisites Before Trading

1. Update TPWallet to the latest official version and back up your seed phrase offline before any position activity.
2. Switch to the correct chain for the protocol you plan to use (Ethereum, Arbitrum, Base, Optimism, BSC etc.).
3. Hold the required settlement asset in that wallet on the correct network — commonly USDC, USDT, sUSD or protocol-specific margin token.
4. Have enough native gas token (ETH on Ethereum/Arbitrum, MATIC on Polygon, BNB on BSC) to pay transaction fees.
5. Confirm the DApp URL comes from the official source; bookmark it and avoid links from chats or ads.
6. Understand that leveraged positions can be liquidated, and synthetic asset pricing depends on oracle feeds and protocol solvency.

Part 1: Synthetic Assets (Synths) via TPWallet

Synthetic assets are EVM tokens that mirror the price of another asset using collateral, debt pools and oracle pricing. Typical use cases: long/short gold, silver, forex, oil, tokenized equities or crypto exposure without custody of the real asset.

Step-by-step

1. Open TPWallet, select the wallet account and switch to the chain the synth protocol runs on.
2. Open the DApp Browser from the home screen and enter the official synth protocol URL (for example Synthetix-based markets or an approved synth DApp).
3. Tap Connect Wallet, select TokenPocket / TPWallet, and approve the connection popup.
4. Approve the token allowance for the collateral asset the protocol requires; sign the approval transaction and wait for confirmation.
5. Deposit collateral or the settlement asset into the protocol's vault / minting panel.
6. Select the synth you want to mint or trade (e.g., sBTC, sETH, sXAU, sEUR), enter the amount, preview the debt ratio, and sign the mint or swap transaction.
7. To close: swap the synth back to the settlement asset, repay debt where required, and withdraw collateral.

Important rules for synths

Check the collateralization ratio and debt pool size before minting; under-collateralization can trigger forced liquidation. Synth swaps often carry fixed exchange fees and slippage; preview every quote before signing. Tokenized stock/commodity synths may be geographically restricted and may not reflect traditional market hours or dividends.

Part 2: Derivatives — Perpetuals, Futures and Options

TPWallet connects you to decentralized perpetual DEXs (perps), order-book derivatives DApps and option platforms through the same wallet connection flow. You sign orders locally; no funds are sent to a centralized exchange account.

Step-by-step for a perp / futures DApp

1. Switch to the supported chain (most perp DEXs live on Arbitrum, Base, Ethereum or BSC).
2. Open the official DApp in the TPWallet browser and connect your wallet.
3. Deposit margin into the protocol's margin account / smart wallet (some protocols require creating a smart contract account first).
4. Set the market pair, direction (Long or Short), leverage and position size.
5. Set stop-loss / take-profit if the platform supports it, preview margin, fee and liquidation price.
6. Tap Place Order and sign the transaction or off-chain order signature in TPWallet.
7. Monitor the position in the DApp; close it by signing a reduce-position or close-order transaction.

Typical derivative DApp types reachable through TPWallet

Perpetual swaps: on-chain perp DEXs offering BTC, ETH and altcoin long/short with leverage. Order-book perps: decentralized limit-order derivatives platforms. Options: on-chain call/put markets where you buy or write options by signing approvals and premium payment. Prediction markets: binary event bets settled on outcome resolution.

Part 3: Common Transaction Flow Inside TPWallet

1. Connect: DApp requests wallet authorization; review the requested permissions and approve only on trusted domains.
2. Approve: ERC-20 allowance transaction grants the protocol contract permission to move your token; set a limited allowance where possible instead of infinite approval.
3. Deposit: sign the deposit of collateral or margin into the contract.
4. Trade: sign the open position, mint synth or swap order; check slippage, funding rate, fee and liquidation price on the preview screen.
5. Manage: monitor funding fees, margin ratio and open interest; add margin or close before liquidation triggers.
6. Withdraw: sign withdrawal after closing positions and clearing debt; confirm returned balance in your TPWallet asset list.

Risk and Safety Checklist

Leverage amplifies both profit and loss; a small adverse move can liquidate the full margin. Never sign infinite approvals casually; revoke unused approvals later through the protocol's approval manager or a block explorer tool. Check contract verification, audit history and TVL before depositing; avoid unaudited new protocols. Do not share seed phrase, private key or signing QR code with anyone; TPWallet support will never ask for them. Beware of fake perp/synth DApp clones in search results; always use official links. Some synthetic and derivative services impose geographic restrictions; check local law and the protocol's terms before trading. Funding rates, oracle failures, delayed settlement and protocol debt defaults are non-custodial risks TPWallet cannot offset.

When to Use Which

Synthetic assets: use when you want price exposure to non-crypto assets or one-click minted exposure backed by on-chain collateral. Perpetuals/futures: use when you want leveraged long or short crypto exposure with explicit liquidation and funding mechanics. Options: use when you want defined risk premium for directional or hedging strategies.