How To Short
Last updated
Last updated
Collect wallet, click Trade button on the bottom, then click Shorting on the top, go to the Shorting page.
Collateral Ratio (C-Ratio) = Collateral Value / Shorting Asset Value (Denominated in $USD). The shorting function only accepts oUSD as collateral and requires over-collateralization. In each short trade, the collateral ratio can be chosen or customized. The minimum collateral ratio can be set to 120% (120% is the system liquidation line). When the collateral ratio drops below 120%, the system will liquidate the user's collateral.
Select a specific asset to short, only oBNB and oBTC can be shorted in current system, more assets will be integrated in the future.
After selecting asset to short, input the amout to short (or the amount to collateralize), the system will calculate the required collateral (or amount to short) based on users' input and collateral ratio selected. Then click confirm button and confirm the trade in wallet (In the first trade, approval is required). After a shorting trade is confirmed, the corresponding position will be shown below, the shorted asset in the trade will be exchanged to oUSD and sent to user's balancer automatically.
Click Manage button to manage the position.
Add Collateral: By adding oUSD as collateral, collateral ratio can be increased to prevent from system liquidation (liquidation will occur when collateral ratio is under 120%).
Remove Collateral: Collateral can be partially removed when the shorting position is over-collateralized. Removing collateral will reduce collateral ratio and increase the risk of being liquidation. If the collateral ratio is reduced and lower than 120%, the transaction will fail to execute.
Increase Position: Increasing position will increase the amount of asset being shorted, and obtain bigger reverse price exposure, collateral ratio will reduce accordingly with higher risk of being liquidated. If the collateral ratio is reduced and lower than 120%, the transaction will fail to execute.
Decrease Position: Position can be decreased by partially repaying the shorted asset. Decreasing position will also decrease the exposure, increase collateral ratio and reduce the risk of being liquidated.
Close Position: To close position, repay the amount of asset shorted, and get all collateral back.
