💡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
To long $DOGE, the first thing you should do is go to the Margin page.
Borrow stables, like BUSD from Lever.
Use the borrowed BUSD to buy $DOGE. At which step, you may carry out up to 3x leverage. (Higher leverage available soon.)
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.)