The Credit Buckets are fundamental smart contracts in the Primex protocol, serving as programmable entities through which all margin trades occur. Each Credit Bucket is equipped with a risk profile that outlines liquidity usage rules. These Buckets act as an intermediary between end users, such as Lenders and Traders, and Decentralized Exchanges (DEXs). They allow Lenders to provide liquidity to Traders (to amplify their trading positions) and earn lending interest.

Traders do not receive borrowed funds to their addresses but instead, perform trades through Credit Bucket contracts. This restriction helps avoid over-collateralization, ensuring that a risky position can be closed, and funds returned to the pool at any time, safeguarding Lenders against losses.

Each Credit Bucket includes a risk profile that defines pool usage rules based on several parameters, such as the main asset, trading pairs, leverage, interest rate for Lenders, and borrowing rate for Traders. To learn more about Credit Buckets parameters, please refer to Bucket parameters explained.