# Introduction **Twin Protocol** is PvP AMM Synthetic Assets Exchange, matching traders against each other in leverage trades, with the option for liquidity providers to participate. The protocol works by allowing traders to open long or short positions at the current spot price of the asset, and charges a funding fee based on the ratio of longs to shorts. The protocol utilises an intermediary token called **TLP**, which is minted when traders deposit collateral, and is used to compensate for any difference in total profits and losses. The **TLP** token can be minted by anyone at the current price, and fees are distributed back into the backing USDC pool, allowing for automatic compounding. This creates a token with a price that can be used for hedging and earning yield. **Twin Protocol** allows for more balanced payouts for traders and encourages users to take on the minority side, while also allowing for the platform to be used for any user who wants to earn yield while taking a directional position or hedging. **Twin Protocol** is built on Arbitrum and BNB Chain, and will be available on other networks as well. --- # Agent Instructions: Querying This Documentation If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question. Perform an HTTP GET request on the current page URL with the `ask` query parameter: ``` GET https://twin-protocol.gitbook.io/twin-protocol/introduction.md?ask= ``` The question should be specific, self-contained, and written in natural language. The response will contain a direct answer to the question and relevant excerpts and sources from the documentation. Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.