Trading

Opening a position

Whether you want to open a “long” or “short” position, there is an option to do so.

Long position: you are benefitting, if the price of the token increases and you are losing, if the price of the token decreases.

Short position: you are benefitting, if the price of the token decreases and you are losing, if the price of the token increases.

When you made up your decision, the important thing is the amount you want to pay and the leverage you are willing to operate with. To open a position, the trading fee is set up at 0.1%, as well as the fee of 0.1% when closing a position. At the start of every hour, a “Borrow Fee” will be deducted from your account, which is a fee paid to the counter-party of your trade. The variation of the fee is subjected to the utilization and can be calculated (assets borrowed) / (total assets in pool) * 0.01%. While there are no price impacts for trades, there could be potential slippage, which is dependent on the movement of the price when your trade transaction is submitted and when it is confirmed. Slippage is the difference between the expected price of the trade and the execution price, which could be customized.

Managing Positions

After opening a trade position, it will be displayed in your Positions list. You can edit your position and manage the liquidation price and your leverage. If you open a position or deposit collateral, a snapshot of your collateral’s USD price is taken. For instance, if your collateral is 2 BTC and the BTC price is 60,000 USD at the time, then the collateral is 120,000 USD and will not change with the price of BTC.

Your gains and losses will be directly proportional to the size of your position. In this scenario, you've used 300 USD to acquire 1,500 USD worth of BTC at a price of 60,000 USD per BTC. If BTC's price rises by 10% to 66,000 USD, the position would generate a profit of 150 USD; conversely, if BTC's price falls by 10% to 54,000 USD, the position would suffer a loss of 150 USD. On the other hand, if you had opened a short position and the price of BTC dropped by 10% to 54,000 USD, the position would yield a profit of 150 USD. However, if the price of BTC climbed by 10% to 66,000 USD, the position would incur a loss of 150 USD.

Position leverage can be illustrated by the formula: (position size) / (position collateral). If you prefer to represent your leverage as (position size + PnL) / (position collateral), you have the option to modify it accordingly. Keep in mind that when adding collateral to a long position, a 0.3% swap fee will be applied for converting the asset to its USD equivalent. This prevents deposits from being utilized as a no-cost swap. However, this fee is not applicable to short positions. No fees are charged for withdrawing collateral from either long or short positions.

Closing a Position

To fully or partially close a position, use the "Close" button.

• For long positions: profits are distributed in the asset you're longing. For instance, if you're longing ETH, your profits will be received in ETH.

• For short positions: profits are paid in the same stablecoin employed to initiate the position, such as USDC.

You have the option to establish stop-loss and take-profit orders. However, when manually closing your position, the corresponding trigger orders will persist. To prevent these orders from being active when initiating future positions, you must close them manually.

Please be aware that the execution of trigger orders is not guaranteed. This might occur under various situations, including but not limited to:

• The mark price (a composite of exchange prices) did not achieve the designated price

• The defined price was attained but not sustained long enough for execution

• No keeper took the order for completion

Additionally, it's important to note that trigger orders (market orders) are not ensured to execute at the specified trigger price.

Liquidations

Once a position is initiated, a Liquidation Price will be determined, which is the price where the loss amount closely approaches the collateral value. This price is calculated when the (collateral - losses - borrow fee) is less than 1% of the size of your position. If the token's price surpasses this threshold, the position will automatically close.

The borrowing fee causes the liquidation price to fluctuate over time, particularly when using leverage exceeding 10x and keeping the position open for several days. Therefore, it is crucial to keep an eye on your liquidation price.

In case any collateral remains after accounting for losses and fees, the respective amount will be refunded to your account.

Pricing

On Cyberperp, there is no price impact, allowing sizable trades to be executed at the mark price. Long positions open at a higher price and close at a lower one, while short positions open at a lower price and close at a higher one.

Fees

A fee of 0.1% of the position size is applied when opening and closing positions for cyberLP pool tokens, and for degen pool tokens - 0.2% of the position size when opening and closing. For long positions, the collateral consists of the token being longed, such as ETH in the case of ETH longs. Meanwhile, short positions use stablecoins like USDT as collateral. When opening or closing a position requires a swap, a standard swap fee ranging from 0.2% to 0.8% of the collateral size is charged. The exact fee is determined by whether the swap increases or decreases the balance. An execution fee is also levied to cover the costs associated with the blockchain network, as detailed below.

Execution Fee: When carrying out actions like opening, closing, or adjusting a position, two transactions occur:

• Users submit a transaction request to either open/close a position, deposit/withdraw collateral

• Keepers oversee the blockchain to perform these transactions.

The "Execution Fee" covers the cost of the second transaction, which corresponds to the network fee paid to the blockchain network.

Stablecoin Pricing

When a stablecoin's price depegs from 1 USD:

• Costs for opening and closing short positions during this period will be determined by the difference between 1 USD and the oracle price of the stablecoin. For example, if the stablecoin's value drops by 0.03 USD, the stablecoin is now worth 0.97 USD. Opening a position with 2,500 units of the stablecoin results in a 2,425 USD position collateral, based on the 0.97 USD price.

• Upon closing the position, 2,425 USD worth of the stablecoin will be deducted, considering a 1 USD price. To avoid front-running concerns during a depeg, collateral is retained in USD value and converted to tokens following the most recent price.

• While long positions won't be affected, there could be a difference when swapping from a stablecoin to the necessary long collateral. You can use alternative swap platforms to perform the swap before initiating the long position.

• Swaps involving the deviated stablecoin will also be subjected to the gap between 1 USD and the oracle price.

  To guarantee payouts for short position profits, contracts will disburse earnings in the stablecoin at either 1 USD or the existing oracle price for the stablecoin.