Leveraged Trading

Opening or closing a position

OpenFi provides leveraged contracts up to 30 times the initial investment. Users can open long or short positions, depending on which side they want to open a leveraged position on.

When closing a position, profits for long positions are paid in the asset being longed for (e.g., if you long ETH, you will receive your profits as ETH), while profits for short positions are paid out in the same stablecoin used to open the position (e.g., USDC or USDT).

Managing Positions

Once a trade is opened, it appears under the Positions tab, where users can manage their leverage and liquidation price by clicking on the "Edit" button to deposit or withdraw collateral.

It's important to note that each time a position is opened or collateral is deposited, a snapshot is taken of the USD price of the collateral. This value remains unchanged, even if the price of the collateral fluctuates. For example, if your collateral is 0.1 ETH and the price of ETH is $1,529.40 at the time, then your collateral is valued at $1,529.4 USD

A 0.3% swap fee is charged when depositing collateral into a long position to prevent deposits from being used as a zero-fee swap. This fee only applies to asset-to-USD conversions, such as converting ETH to its USD value.

However, this fee does not apply to shorts, and there is no fee for withdrawing collateral from longs or shorts.

Stop-Loss / Take-Profit Orders

You can set stop-loss and take-profit orders. Once you create a trigger order, it will be visible both in the position's row and in the "Orders" tab. You can easily edit the order and adjust the trigger price as needed.

Keep in mind that if you manually close a position, any associated trigger orders will remain open. You'll need to cancel them manually if you don't want them to be active when you open future positions.

It's important to note that orders are not guaranteed to execute, which can happen for a few reasons.

• the marked price is an aggregate of exchange prices

• the marked price may not reach the specified price, or the specified price may be reached but not held long enough for the order to be executed.

In some cases, no keeper may pick up the order for execution. Additionally, trigger orders are market orders and are not guaranteed to execute at the trigger price.

Fees and allocation

The cost to open/close a position is 0.1% of the position size.

Swap Fee: A swap fee of 0.2-0.8% of the dynamic collateral size will be charged if a swap is required when closing a position.

Borrowing Cost: The borrowing cost is calculated as (borrowed assets / total assets in the treasury) * 0.01%, and is accrued at the beginning of each hour.

Execution Fee:

Users send the first transaction to request open/close/deposit collateral/withdraw collateral

Price Keepers observe the blockchain for these requests and execute them

30% of the fees are returned to $veNEC holders every week, while the other 70% goes to the treasury. The fees accumulated by the treasury will be used to buy back $OPEN tokens and build deep liquidity on the OPEN-USDT pool over time.