Opening Positions

Traders can open positions with leverage. They put up a downpayment and borrow funds from the LP vaults. The interest for the loans will be calculated off-chain based on the utilization rate and other market factors.

Longs

Traders initiate Long positions with ETH. The protocol then extends extra ETH to procure the ERC-20 token, which are subsequently deposited into the LP pool as the open position.

Shorts

Traders begin Short positions with ERC-20 tokens. The protocol supplies them with supplementary to purchase ETH. These are then deposited in the LP pool as the open position.