Opening & Closing Positions

Guide to using the interface for option trading

Opening a Perpetual Option

To open a position, first navigate to the borrow page under the trade tab.

To change the pool, simply click on the selector and choose the market you would like to open the position from. You can search for a market by token symbol or address.

When you have selected the pool, it's time to select your option position: straddle, long or short. To open a position, you can deposit collateral in either token of the pool.

Once you have provided your preferred deposit token and amount you need to select your desired leverage (LTV). The higher the LTV, the higher the returns but the shorter your Time to Liquidation will be. You can also select a slippage amount to ensure better execution by click the gear icon in the top right corner of the trade tool.

Be careful setting the slippage too low as your transaction may fail!

There is a lot here so let's break it down.

  • Max Price Slippage - Controls price slippage of your borrow position from the entry price. This will prevent you from opening a trade position that causes the price to move significantly from the impact of a trade.

  • Max Rebalance Slippage - This controls the price impact you are willing to accept for swapping the pool assets to create a Long or Short position. These positions do not have a 50:50 token ratio so the collateral must be rebalanced to create the position.

  • Max Origination Fee - This is the origination fee you are willing to pay. Origination fees are dynamic and will increase as the utilization of the pool increases. Fees are dynamic to prevent over leveraging of the CFMM and attacks to the protocol.

When you are ready to open a position, make sure to press the "Approve" and "Confirm" button for the transaction.

Press the "Confirm" button on the position detail confirmation pop up section.

Finally, confirm the transaction request in your wallet.

Closing a Perpetual Option

Navigate to the trade page for the market of the position you would look to close and select the "Close" button on the position you are closing.

Once you have selected the "Close" button, you can choose how much of your debt you would like to repay. Notice how your payout amount changes as you move the sliding scale.

Once you have selected your payout amount, choose your payout token and press the "Close Position" button. If you repaid the maximum amount of debt, you will have fully closed the position. It will no longer show in the open positions table. If you navigate to the "View History" button in the borrowed positions tab of the portfolio page, you can see your closed and liquidated positions.

If you partially closed the position (repaid less than the maximum), you will receive your payout amount and the position will still be live. Your deposit and total collateral will be reduced depending on how much you closed.

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