Shorting Terminology
Collateral Ratio (C-Ratio)
Collateral Ratio = Collateral Value / Shorting Asset Value (denominated in $USD), system will liquidate a position with collateral ratio under 120%.
Liquidation Price
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
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
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
Profit / Loss = Shorting Asset Amount * (Average Open Position Price - Average Close Position Price)
Fee Rate
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
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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