> For the complete documentation index, see [llms.txt](https://memeko.gitbook.io/memeko-docs/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://memeko.gitbook.io/memeko-docs/pre-market-trading-and-bonding-curve.md).

# Pre-Market Trading & Bonding Curve

Memeko uses a virtual bonding curve to facilitate trading for newly launched meme tokens before they graduate to a decentralized exchange liquidity pool.

The bonding curve determines token pricing as buying and selling activity changes the token's position along the curve. This allows tokens to begin trading without creators having to provide upfront seed liquidity.

Built for Elysium and LitVM, Memeko uses **HYPE/zkLTC as the native gas token** for network transactions. The trading asset used by the bonding curve will depend on the final deployed configuration.

### How the Bonding Curve Works

When a creator launches a token on Memeko, the token enters the pre-market trading phase.

During this phase:

* Trading takes place through Memeko's virtual bonding curve.
* Token prices change as users buy and sell.
* Market metrics and graduation progress can be tracked on the token page.
* Trading continues until the token reaches its graduation conditions.

The bonding curve is designed to provide a structured launch mechanism without requiring an initial liquidity deposit from the creator.

### Initial Token Parameters

Memeko's documented launch model defines the following parameters.

| Parameter                                | Value                |
| ---------------------------------------- | -------------------- |
| Initial market capitalization            | $2,500               |
| Target graduation market capitalization  | $45,000              |
| Total token supply                       | 1,000,000,000 tokens |
| Supply allocated to bonding curve        | 80%                  |
| Supply reserved for graduation liquidity | 20%                  |

These are the parameters specified in Memeko's current project documents. Final production values should match the deployed Elysium and LitVM contracts.

### Buying a Token

To buy a token during the pre-market phase:

1. Open the token's page on Memeko.
2. Review the token information, price chart, taxes, and bonding curve progress.
3. Enter the amount you want to spend using the supported trading asset.
4. Review the expected tokens received and applicable slippage protection.
5. Confirm the transaction in your wallet.

Your transaction must also cover the required Elysium and LitVM network gas fees in HYPE/zkLTC.

The number of tokens received depends on the bonding curve price, trade size, applicable taxes, and other transaction parameters.

### Selling a Token

To sell tokens during the pre-market phase:

1. Open the relevant token page.
2. Enter the amount of tokens you want to sell.
3. Review the expected proceeds and applicable sell tax.
4. Check the transaction's slippage settings.
5. Confirm the transaction in your wallet.

The proceeds you receive depend on the bonding curve's current state, trade size, applicable fees, and transaction execution.

A displayed price does not guarantee that a trade will execute at that exact price.

### Price Movement and Market Metrics

Memeko's token pages are designed to provide visibility into the token's trading activity.

#### Market Capitalization

Market capitalization represents the displayed market value of the token based on its price and supply methodology.

#### Trading Volume

Trading volume provides insight into the amount of trading activity over the displayed period.

#### Holder Count

Holder count indicates the number of addresses holding the token. It does not necessarily represent the number of unique individuals.

#### Bonding Curve Progress

The progress indicator shows how far the token has advanced toward the target graduation market capitalization.

These metrics can help you understand market activity, but they do not guarantee liquidity, demand, or future price performance.

### Slippage Protection

Slippage occurs when the execution price differs from the expected price.

Memeko's documented bonding curve design includes transaction safeguards that allow minimum-output conditions to be specified for buys and sells.

* **Minimum tokens received:** Sets the minimum number of tokens accepted for a buy transaction.
* **Minimum proceeds received:** Sets the minimum amount of the trading asset accepted for a sell transaction.

If a transaction cannot satisfy the specified minimum-output condition, it should revert rather than execute below the accepted threshold, subject to the deployed contract implementation.

Always review your transaction settings before signing.

### Maximum Buy Limits

Memeko's documented design includes a maximum purchase limit per transaction during the bonding curve phase.

This safeguard is intended to reduce the ability of a single transaction to dominate early token distribution.

The exact limit depends on the configured contract rules. Check the platform's current settings for the applicable restrictions.

### Graduation to a Liquidity Pool

Memeko's documented launch model specifies a target graduation market capitalization of $45,000.

When the applicable graduation conditions are met, the pre-market bonding curve phase ends and the token transitions to a decentralized exchange liquidity pool.

The original technical specification describes the following graduation process:

1. Pre-market curve trading completes.
2. A trading pair is created on the designated decentralized exchange.
3. Reserved tokens and accumulated liquidity are deposited into the pool.
4. The initial pool price is designed to match the final bonding curve price.
5. Liquidity provider tokens are permanently burned according to the specified liquidity-locking mechanism.

The intended outcome is a transition from pre-market trading to public decentralized exchange trading.

**Important:** The original specification references Base and Uniswap V2. Memeko's production graduation DEX, trading pair, liquidity parameters, and permanent-locking mechanism must be confirmed for LitVM before these steps can be treated as final implementation details.

### Risks of Bonding Curve Trading

Bonding curve trading carries financial risks.

* Prices can change quickly as users buy or sell.
* Large transactions can have a significant impact on execution prices.
* Slippage may cause a transaction to revert.
* A token may not reach its graduation target.
* Reaching graduation does not guarantee sustained liquidity or price appreciation.

Always review the token's configuration and market information before trading.

**Next:** Graduation & Liquidity Locking