FAQs
Quick answers to common questions about trading, earning, and using Wasabi.
Trading
Q: What happens when I go long? Your down payment is combined with margin borrowed from the quote token vault and used to purchase the underlying token. Those tokens are held as collateral for your position.
Q: What happens when I go short? Your down payment is combined with margin borrowed from the respective token vault and sold to the market for the quote token. The quote token received is held as collateral for your position.
Q: Is there a funding rate? No. Wasabi uses borrow rates only - the interest you pay on borrowed margin. Your liquidation price moves gradually as interest accrues over time.
Q: Why is my entry price different from the index price? Opening a position factors in slippage, DEX pool conditions, and the protocol fee. This results in a slightly different entry price than the quoted index price.
Q: What is a Looping Market? A Looping Market lets you long a yield-generating token with leverage. You earn the token's native APY while gaining leveraged price exposure - amplifying both yield and price movement.
Q: How do I claim yield from a Looping position? It depends on the token. For built-in yield tokens like $JLP, rewards are reflected in the token's price. For separate-reward tokens, rewards can be claimed manually but are paid out after the position is closed.
Q: I'm getting failed transactions when opening or closing a position. What should I do? Refresh your browser and adjust your slippage settings. Avoid waiting too long between initiating and confirming a transaction - price can move in between. If the issue persists, open a ticket in Discord and the team will help.
Earn Vaults
Q: What are Wasabi vaults and how is APY calculated? Wasabi vaults are margin lending pools where depositors earn native yield. APY fluctuates based on utilization - the more capital traders borrow, the higher the yield.
Q: Where does the yield come from? Traders borrow vault assets for leveraged trades. Unlike perps or lending protocols, Wasabi doesn't take the other side or rely on emissions. Every position is overcollateralized, and vaults are fully transparent with no lockups or deposit fees. Token teams may also boost specific vault APYs with additional token incentives.
Q: Why does vault APY change? APY moves with market sentiment and utilization. Yields are often highest when sentiment on a token is low. Staying deposited consistently helps maximize returns over time.
Q: Can I deposit and withdraw whenever I want? Yes. No lockups, no withdrawal penalties. The one exception: if a vault hits 100% utilization, you may need to wait for capacity to free up. Wasabi actively manages utilization and is developing additional mechanics to ensure smooth withdrawals during peak demand.
Q: What happens when I withdraw funds from a vault? No penalties. However, if you withdraw before a pending interest payment completes, that pending interest is forfeited.
Q: What are the risks of using vaults? The primary risk is that a position cannot be liquidated in time, which could affect interest or principal payments. Wasabi mitigates this through liquidatable loans and deep settlement liquidity.
Points & Wasabi Pass
Q: What are Wasabi Points? Wasabi Points are the native reward system. Points may lead to something significant in the future.
Q: How do trading volume and points correlate? Volume matters, but it's not the only factor. Boosts, consistency, and profitability all play a role. The exact formula isn't public - this protects genuine users.
Q: What other factors affect points besides volume? The algorithm rewards genuine, consistent traders who pay attention. The Wasabi Pass boosts trading points, and limited-time boosts appear periodically - follow Wasabi's socials to catch them.
Q: What does the Wasabi Pass do? Each Wasabi Pass reduces trading fees (options trading only) and boosts Trading Points by 10%, up to 100% max (10 passes). Additional utility is coming.
Listings
Q: How does Wasabi decide which tokens to list? Market cap, holder distribution, volatility, and other factors are evaluated before listing a project.
Q: What's the process for adding a token or NFT to Wasabi? Reach out to the team via Discord. Wasabi lists assets faster than any other leverage platform.
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