#OVL# Yes, the Overlay Protocol has a burn system. Here’s how it works ¹:
- *Mint-and-Burn Mechanism*: The Overlay Protocol uses a mint-and-burn mechanism to manage the supply of OVL tokens. When users open a position and win, the protocol will mint new OVL tokens as a reward. However, if users lose, the OVL tokens associated with the loss will be burned.
- *Risk Management*: Overlay Protocol has several risk management mechanisms to prevent inflation, such as:
- *Open Position Limit*: Limits the maximum exposure per market or across the entire platform.
- *Payment Limit*: Setting a maximum pro