Infinity Pools is a decentralized finance (DeFi) protocol designed for trading derivatives, specifically perpetual contracts, on a variety of underlying assets. The platform operates on-chain using smart contracts, providing a permissionless environment for users to gain leveraged exposure to cryptocurrencies and other markets. A core component of its architecture is the use of a virtual Automated Market Maker (vAMM). Unlike traditional AMMs that require liquidity pools of paired assets, a vAMM uses a mathematical formula to determine asset prices without holding any real assets itself. The actual collateral is held in a separate smart contract vault, which backs the entire system. This design offers a distinct approach to leveraged trading. Users can open long or short perpetual positions by depositing collateral. The protocol's primary innovation is its mechanism for handling positions, which is structured to avoid forced liquidations. Instead of liquidating underwater positions at a specific price threshold, the system uses dynamic funding rates and other parameters to manage risk across the protocol. This means a trader's position value can still decrease significantly, but it is not automatically closed by the protocol, addressing a major pain point for users of leveraged derivatives. For liquidity providers (LPs), Infinity Pools presents an alternative model. LPs deposit a single asset into the collateral vault to underwrite the trades happening on the vAMM. In return for providing this liquidity and bearing the counterparty risk for traders, LPs can earn fees generated from trading activity and funding payments within the ecosystem. The protocol aims to enhance capital efficiency in the decentralized derivatives market by separating the price discovery mechanism from the collateral pool, offering a unique structure for both traders and liquidity providers engaging with on-chain financial instruments.