Trading

The protocol supports trading perpetual contracts on synthetic real estate with leverage.

Position Types

Long Position

A long position is opened when a trader expects the real estate price to rise. When the price increases, the trader makes a profit.

Short Position

A short position is opened when a trader expects the real estate price to fall. When the price decreases, the trader makes a profit.

Leverage

The protocol supports leverage up to 2x:

• 1x — no leverage (margin trading)
• 2x — double leverage

When using leverage, a trader can open a position of greater value using a smaller margin amount.

Fill Price

When opening a position, Fill Price is used, which accounts for the trade's impact on the market (price impact).

Fill Price is calculated based on the current Index Price and trade size:

$\text{fillPrice} = \text{indexPrice} \times \left(1 + \frac{\text{skew} + \text{signedTradeSize}/2}{\text{SKEW\_SCALE}}\right)$

where:

• $\text{signedTradeSize} = \text{tradeSize}$ for long positions
• $\text{signedTradeSize} = -\text{tradeSize}$ for short positions

Price Impact

Price Impact shows how much the execution price differs from the Index Price:

$\text{priceImpact} = \frac{\text{fillPrice} - \text{indexPrice}}{\text{indexPrice}}$

Fees

The protocol charges a fee of 0.1% (0.001) when:

• Opening a position (opening fee)
• Closing a position (closing fee)

The fee is calculated from the position value:

• Opening fee = $\text{positionValue} \times 0.001$
• Closing fee = $\text{currentValue} \times 0.001$

Profit and Loss Calculation

Profit/loss is calculated when closing a position:

For Long Position:

$\text{grossPnl} = (\text{exitPrice} - \text{entryPrice}) \times \text{quantity}$

$\text{netPnl} = \text{grossPnl} - \text{openingFee} - \text{closingFee}$

For Short Position:

$\text{grossPnl} = (\text{entryPrice} - \text{exitPrice}) \times \text{quantity}$

$\text{netPnl} = \text{grossPnl} - \text{openingFee} - \text{closingFee}$