# Shorting Terminology

### Collateral Ratio (C-Ratio) <a href="#collateral-ratio-c-ratio" id="collateral-ratio-c-ratio"></a>

Collateral Ratio = Collateral Value / Shorting Asset Value (denominated in $USD), system will liquidate a position with collateral ratio under 120%.

### Liquidation Price <a href="#liquidation-price" id="liquidation-price"></a>

Liquidation Price = Collateral Value / (Shorting Asset Amount \* Liquidation Line), liquidation price is the price of shorting asset at which system will liquidate the position.

### Interest Rate <a href="#interest-rate" id="interest-rate"></a>

* Long Amount > Short Amount, Interest Rate = 0
* Long Amount < Short Amount, Interest Rate = Max(W+b, 0)
* * W = K / (Ql + Qs), Ql is long amount, Qs is short amount
  * K = Qs - Ql
* * b is base interest rate, it is a configurable parameter, the current base interest rate is 0.5%

### Accrued Interest <a href="#accrued-interest" id="accrued-interest"></a>

Accrued Interest = Shorting Asset Amount *Interest Rate* Shorting Duration Time, for a specific asset, when long amount > short amount, there is no accrued interest for shorting.

### Profit / Loss <a href="#profit--loss" id="profit--loss"></a>

Profit / Loss = Shorting Asset Amount \* (Average Open Position Price - Average Close Position Price)

### Fee Rate <a href="#fee-rate" id="fee-rate"></a>

Fee Rate is the charge proportion of shorting synthetic assets. The default value is 0.5%. It can be adjusted according to market condition.

### Fee Cost <a href="#fee-cost" id="fee-cost"></a>

Fee Cost = Shorted Synthetic Asset Value \* Fee Rate, the fee cost will be transfered into fee pool and finally distributed to OGX stakers.


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