💡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. 1.
    To long $DOGE, the first thing you should do is go to the Margin page.
  2. 2.
    Borrow stables, like BUSD from Lever.
  3. 3.
    Use the borrowed BUSD to buy $DOGE. At which step, you may carry out up to 3x leverage. (Higher leverage available soon.)
  4. 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.)
Copy link