> For the complete documentation index, see [llms.txt](https://docs.wasabi.xyz/perps-lite-paper/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.wasabi.xyz/perps-lite-paper/opening-positions.md).

# 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.