Trade

Trading Guide

How to trade?

How to enter a long/short position?

Pro Interface:

Lite interface:

Then there you go - the pool will establish your position. That is, the pool will mint an ERC721 token to your address, which is how your position exists on the Ethereum blockchain. If you would like to add some position in the same direction, simply repeat the steps above, except you don't need deposit margin if you have sufficient balance in your position.

How to close a position?

Let's assume you have a long position of 10 contracts, if you would like to partially or completely close the position, simply short the number of contracts (no more than 10) you would like to close as if you were entering the opposite position. Likewise for closing a short position.

A complete closure of the position can be done by clicking the "CLOSE POSITION" button on the "MY POSITION" tab.

When you partially or completely close a position, the part of the unrealized PnL associated with the part of the closed position will become realized - the pool will automatically apply that to your balance (i.e. add or subtract base tokens from your balance).

Please note that even if you completely close your position, your balance will NOT be automatically refunded to your wallet address. To have your balance refunded, simply WITHDRAW your balance. Also please note that when you close your position and withdraw your fund, the position token (the DPT ERC721) in your wallet will become empty but stay. Next time when you open a position, the same position token will be used.

What do I have after placing an order?

When you successfully place an order, you have a PToken minted to your address on the blockchain (Ethereum, BSC, or HECO). PToken (P for position) is a non-fungible token (NFT) containing your position information: direction&volume, cost, your margin, cumulative funding rate at the minting block.

The PToken is how your position exists on the blockchain. You can send it to another address just like you send any NFT or fungible token (e.g. ERC20 token). That is, PToken is a tokenized position. Or, from a financial perspective, it's a tokenized risk exposure.

What is funding fee?

Funding Fee of Perpetual Futures To balance the two sides of long and short positions, the pool will always apply a funding fee to the majority side (Perpetual Futures). For each ETH block, assuming the total number of contracts in a long position is L while that in a short position is S. Then every single long contract will pay a funding fee = FundingRate*ContractValue, per the following formula. Whereas every single short contract will receive a funding fee = FundingRate*ContractValue. FundingRate = r*NetPositionContractValue/PoolLiquidity =r*(L-S)*CurrentPrice*Multiplier/PoolLiquidity where r is the funding rate coefficient, and ContractValue is ContractValue = CurrentPrice * Multiplier Please note that when L>S, FundingRate is positive (meaning long positions pay short positions), whereas when L<S, FundingRate is negative (short positions pay long positions). Funding Fee of Everlasting Options For each second, assuming the total number of contracts in a long position is L while that in a short position is S. Then every single long contract will pay a funding fee per the following formula:

Funding Fee for 1 Day = Option Mark Price - Payoff, where Payoff = max(spot - strike, 0) for call Payoff = max(strike - spot, 0) for put

Please note: 1. the Funding Fee is accrued on a per-second basis. That is, a funding fee of (Funding Fee for 1 Day)/86400 is accrued every second.

2. Unlike Perpetual Futures, the funding fee for everlasting options is always positive (i.e. long positions always pay short positions).

If I have positions in several symbols of one trading pool, would the total margin requirement be calculated for all of my positions?

Yes, should you have positions in several symbols of one trading pool, a total margin requirement would be calculated for all of your positions. Please note accordingly, forced liquidations are executed on the account level too. For more information check out the question: What happens if I do not meet my maintenance margin requirements? Will my position get liquidated?

What happens if I do not meet my maintenance margin requirements? Will my position get liquidated?

To maintain those positions open, traders have to keep a certain percentage of the position's value on Deri Protocol, which is called "Maintenance Margin". The minimum Maintenance Margin requirements can be found on the Contract Info panel on the trading interface. If the Maintenance Margin requirement is not met, the position will be liquidated and your margin balance will be permanently lost. You can avoid this by adding additional margin.

Please note that we calculate the margin requirement on the account level. That is, should you have positions in several symbols of one trading pool, a total margin requirement would be calculated for all of your positions. Accordingly, forced liquidations are executed on the account level too. That is, upon forced liquidation, all of your positions in this pool will be closed and you will lose all of your margin balance in this pool.

Risk Warning

Trading Margins & Contracts on Deri Protocol includes but is not limited to - a high level of risk, and may not be suitable for all kinds of investors. The enormous degree of leverage can work in favor of you as well as against you. Before making the decision to invest using Deri Protocol, you should carefully consider your level of experience, investment objectives and risk appetite. There is a possibility that you may lose part of your investment or all of your initial investment. You should be aware of all the risks associated with trading contracts and margin. Deri Protocol will not be responsible for any losses, damages or claims arising from events falling within the scope of the events mentioned above. We urgently advise you not to invest money that you cannot afford to lose and we also recommend you to seek advice from an independent financial adviser, If you have any questions or doubts!