💡Eg: Long $DOGE

💡Eg: Long $DOGE

Long $DOGE. Do it when you are bullish about $DOGE. Basic logic is to borrow more stables to buy more $DOGE when the price goes down and sell it to repay the loan when the $DOGE price goes up

  1. To long $DOGE, the first thing you should do is go to the Margin page.

  2. Borrow stables, like BUSD from Lever.

  3. Use the borrowed BUSD to buy $DOGE. At which step, you may carry out up to 3x leverage. (Higher leverage available soon.)

  4. Click the button Long $DOGE and pay the gas fee.

Before you perform margin trading, the Risk Rate should be considered.

  • The higher your Risk Rate is, the safer your account is.

  • When Risk Rate<100%(Liquidation Line), a liquidator will be able to call the liquidation contract to use part of your collateral to pay 50% of your debt. In return, the liquidator will receive 5% (varies from asset to asset) of your liquidated collateral as liquidation penalty. After liquidation, your Risk Rate shall be above 100%. If in any case, it drops below 100% again due to further price fluctuation, the liquidation process will happen again. Example, if you have deposited 2,000 BUSD and your loan in BNB is $1,000 worth. When liquidation happens due to the increasing of the BNB price, $500 worth (50% of your loan) will be deducted from your collateralized BUSD and extra $25 (liquidation penalty) will also be deducted and send to the liquidator.

  • In order to avoid liquidation, you shall repay the loan before the Risk Rate hits 100%, by closing your position or depositing more corresponding asset.

  • Liquidation Price=Current Collateral Value/Current Risk Rate (only applied to single position.)