Trading
Last updated
Last updated
We offer perpetual futures with up to 200X leverage on BTC, ETH, and many mainstream crypto assets.
We do not custody your assets. Your assets stay with you and the margins posted are locked in a dedicated smart contract.
All positions are margined in USDT.
You can add and remove margins to outstanding positions. When margins are updated to an outstanding position, the relevant liquidation price is also adjusted.
(coming soon) Multiple stablecoins are accepted as eligible margins. These will be swapped automatically to USDT.
You can trade either Market Order or Market Limit Order. Both order types can also have either Stop Loss, Profit Target, or both.
Market orders are filled at the best price offered by the Liquidity Pool.
Market limit orders are filled when the limit prices match the best price offered by the Liquidity Pool.
Stop Loss price can be added to Market Order or Market Limit Order, which will trigger an automatic close of the position if the condition is satisfied.
Profit Target price can be added to the Market Order or Market Limit Order, which will trigger an automatic close of the position if the condition is satisfied.
Every position is subject to Funding and Rollover Fee. Stop Loss and Profit Target prices of a position are dynamically adjusted based on the relevant Funding and Rollover Fee and executed on the adjusted basis. This ensures that the execution of the Stop Loss and Profit Target is in line with the PnL expectation of the trader.
So for example, let's assume your position is a buy position with the entry price at $1,000 and you entered a Stop Loss at $800 (i.e. the target maximum loss is 20% before leverage). If the Funding and Rollover Fee is zero, then the Stop Loss will be triggered if Oracle Price is $800. If, however, the accumulated Funding and Rollover Fee is $100, then the Stop Loss will be triggered if Oracle Price is $900 to ensure the target maximum loss expectation (of 20% before leverage) is met.
Prices offered by the Liquidity Pool embed two types of transaction costs - Fee and Market Impact.
Long/Short Open Price = Oracle Price x (1 +/- Fee +/- Market Impact)
Long/Short Close Price = Oracle Price x (1 -/+ Fee -/+ Market Impact)
Fee is 0.10%.
Market Impact is calculated dynamically as a function of outstanding positions on the platform and the position size. It is a deterministic charge simulating the impact a new position would have on the market.
Market Impact (%) = (long/short outstanding positions on the platform + Position size) / 1% depth above/below
1% depth above/below is benchmarked to the corresponding liquidity at leading exchanges and regularly updated.
Outstanding positions are subject to Funding Fee and Rollover Fee.
Funding Fee is a dynamic fee charged per block-height that is based on the long/short outstanding position imbalance on the platform and is charged on the position size (i.e. your margin multiplied by the leverage).
Funding Fee can be positive or negative, depending on your position relative to the position imbalance on the platform. Generally speaking, you are paid Funding Fee to take a contrarian view, and pay Funding Fee to take a consensus view.
Funding Fee protects the platform and the liquidity providers by helping balance the long/short outstanding positions.
Long Funding Fee Per Block (%) = Base Fee Per Block x (long outstanding position on the platform - short outstanding position on the platform) / long outstanding position on the platform
Short Funding Fee Per Block (%) = Base Fee Per Block x (short outstanding position on the platform - long outstanding position on the platform) / short outstanding position on the platform
Base Fee Per Block is different for each crypto asset and is updated periodically.
The definitions above mean the total Long Funding Fee per block always equals the total Short Funding Fee per block, i.e. this is a transmission mechanism by which traders with consensus view pay traders with contrarian view. Therefore, no Funding Fee is paid to the platform or the liquidity providers.
Rollover Fee is a fixed fee charged per block-height on your margin. Because it is charged on your margin, the higher the leverage, the less significant the Rollover Fee is to your overall position. Rollover Fee protects the platform and the liquidity providers by helping level the risk of lower leverage positions with that of higher leverage positions.
Rollover Fee per Block (%) = Base Fee Per Block x position margin
Base Fee Per Block is different for each crypto asset and is updated periodically.
See Calculation and execution of Stop Loss and Profit Target.
Opening a position will transfer the required margin to a dedicated on-chain contract, whose sole purpose is to hold trader margins.
Liquidity Pool which acts as the central counterparty and clearinghouse to all positions.
To open a position, you need to enter the margin you want to put up together with the leverage you are looking for.
(coming soon) You can post margin in many stablecoins, which will then be automatically swapped into USDT using a third-party DEX (e.g. PancakeSwap), with the maximum amount of the stablecoin to meet the USDT margin requirement specified by you.
Your execution price is deterministically calculated (see Fee and Market Impact) based on the latest oracle price, but, especially during a fast-moving market, there can be a gap between the screen price and the actual execution price (primarily due to changes in oracle price and outstanding positions on the platform).
To mitigate this risk, you can specify Tolerance when opening a position, so that the actual execution meets your execution price requirement.
Closing a position will calculate the PnL based on the best price offered by the Liquidity Pool and transfer it to the trader, together with the margin posted.
(coming soon) You may request the PnL to be transferred in a stablecoin other than USDT, in which case the PnL (together with the margin) will be swapped into the requested stablecoin using a third-party DEX (e.g. PancakeSwap), with the minimum amount of the stablecoin specified by you, and transferred to you.
You can not lose more than the margin posted.
Your execution price is deterministically calculated (see Fee and Market Impact) based on the latest oracle price, but, especially during a fast moving market, there can be a gap between the screen price and the actual execution price (primarily due to changes in oracle price and outstanding positions on the platform).
To mitigate this risk, you can specify Limit Price when closing a position, so that the actual execution meets your execution price requirement. Specifying a Market Price will simply accept the actual execution price.
Outstanding positions are subject to liquidation if the relevant liquidation price is breached according to the price oracle.
Liquidation price is adjusted dynamically based on Funding and Rollover Fee in the same manner as the Stop Loss and Profit Target.
Outstanding positions eligible for liquidation are liquidated at the earliest chance, to protect the users and the platform.
Liquidation closes the relevant position. It is subject to a liquidation penalty (currently 10% of the liquidation). In order to avoid the liquidation penalty, traders are advised to close a position before liquidation is triggered.
Trading at uniwhale is subject to the following constraints:
Leverage cannot exceed a cap.
The number of open positions for each pair a trader can carry is capped.
The number of open positions across pairs a trade can carry is capped.
The total margin across pairs a trader can carry is capped.
Each pair is subject to the maximum total long and short positions.
There is a minimum position (after leverage) required.
A position is subject to the maximum percentage PnL, determined as a function of your margin and leverage (see Maximum Percentage PnL).
The maximum possible PnL of all open positions (long and short) across the platform cannot exceed the prevailing market value of Liquidity Pool.
At Uniwhale, we must ensure that the platform always stays solvent as positions are opened and closed. That means the counterparty to all the trades, ie. the Liquidity Pool, must be able to meet the maximum possible PnL of all open positions (long and short) across the platform.
Because the maximum possible PnL of long/short open positions, by default, is unlimited/very large, respectively, we apply so-called "Maximum Percentage PnL" to each position, which limits the maximum possible PnL of each position and therefore allows us to determine the maximum possible PnL of all open positions.
To determine Maximum Percentage PnL, we take into consideration the leverage of a position, and the higher the leverage a position has, the higher its Maximum Percentage PnL subject to a cap and a floor, i.e.
Maximum Percentage PnL = Max(Floor, Min(Cap, Leverage / Maximum Percentage PnL Factor))
The above makes sense because generally you would expect a higher potential return with a higher leverage than with a lower leverage.
It also allows the Liquidity Pool to run a far better capital efficiency because the pool then allocates relatively (per leverage) more capital to those with higher leverage than those with lower leverage.
