Open Positions

Long / Short with Leverage

As long as the liquidity exists for a token pair, a trader can long or short a token using its paired token with leverage. The maximum available leverage is determined by how narrowed range is the available liquidity.

To open each leverage position, there are two parts of payment -- collateral and premium. The collateral is the maximum amount that a position can lose, if the price moves to the undesirable direction. The premium is for interest accrual and the leftover portion will be repaid at position closing.

Fees

Each leverage position comes with three fees: open swap fee, open position fee and close swap fee. The swap fee at position opening and closing is paying the LPs from the underlying AMM. The position fee is 0.03% of the leverage position size, which is paid to the LP that lends the liquidity. This fee is deducted from the collateral, and is calculated as part of the PnL.

Premium

The premium is 2% of collateral as an upfront payment. Interest is accrued to the premium at a rate according to the underlying AMM's swapping activities. The frontend surfaces an hourly borrowing rate for this interest accrual. The liquidation happens when interest accrues over the premium.