#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 profit limit per position to avoid excessive token printing.
- *Circuit Breaker*: Halting new positions or applying liquidation in critical situations to protect platform funds.

Thus, the burn system on the Overlay Protocol helps maintain the balance and stability of the OVL token ¹.