Perpetual Trading (Long/Short)

Opening a position 

Click on "Long" or "Short" depending on which side you would like to open a leverage position on.  

Long position 

• Earns a profit if the token's price goes up 
• Makes a loss if the token's price goes down 

Short position 

• Earns a profit if the token's price goes down 
• Makes a loss if the token's price goes up

After selecting your side (long or short), enter the amount you want to pay (your collateral) and the leverage you want to use, in the below example 0.05 BTC worth ~$847.57 is being used to buy a 5x BTC long position of size ~$4,216.77. 

The "Entry Price" is $16,951.43 and the Liquidation Price is $13,984.93  

Below the swap box you would also see the "Borrow Fee" that is deducted at the start of every hour. This is the fee paid to the counterparty of your trade, i.e. LEVEL trading pool. The fee per hour will vary based on asset utilization. The "Borrow Fee" for longing or shorting is shown below the swap box. 

Managing Positions 

After opening a trade, you would be able to view it under your Positions list, you can also click on "Deposit" or "withdraw" to deposit and withdraw collateral, this allows you to manage your leverage and liquidation price. 

When you open a position or deposit collateral, a snapshot of the USD price of your collateral is taken, so e.g. if your collateral is 0.05 BTC, worth $847.57 at the time, then your collateral is $847.57 and will not change even if the price of BTC changes.

The amount of profit and loss you make will be proportional to your position size. In this example, $847.57 has been used to buy USD of BTC. If the price of BTC increases by 10%, the position would have a profit of $84.757, if the price of BTC decreases by 10%, the position would have a loss of $84.757. 

If a short position was opened instead, then if the price of BTC decreased by 10% the position would have a profit of $84.757, if the price of BTC increased by 10%, the position would have a loss of $84.757. 

Closing a Position 

You can close a position partially or completely by clicking on the "Close" button. 

For long positions, profits are paid in the asset you are longing, e.g. if you long BTC you would get your profits as BTC. 

For short positions, profits will be paid out in the same stablecoin that you used to open the position, e.g. BUSD or USDT. 

Take Profit & Stop Loss

When Closing a Position in the "Close" window you will have to options instead of Market Order, to use the Take Profit or Stop Loss function. Choose the price when the Order has to be triggered. 

After the successful transaction you will see your open Orders right next to your open Positions.

Market Cap

Limit Ratio of Long Position:

• BTC 95% 
• ETH 95% 
• CAKE 30%
• BNB 20%

Max Value of Short Position:

• BTC - No limit 
• ETH - No limit 
• CAKE - $50k
• BNB - $500k 

Pricing 

There is no price impact for trades on Level. You can execute large trades exactly at the mark price. Since the protocol serves as the counterparty, there is a small spread for entering and exiting trades. 

The mark prices are displayed next to the market name, long positions will be opened at the higher price and closed at the lower price while short positions will be opened at the lower price and closed at the higher price. The chart will indicate the average of the two mark prices. 

Fees 

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

The collateral of long positions is the token being longed, for ETH longs the collateral is ETH and for BTC longs the collateral is WBTC, etc. The collateral of shorts positions is any of the supported stablecoins e.g. USD, DAI. If a swap is needed when opening or closing a position then the regular swap fee would apply, this fee is 0.0% to 0.6% of the collateral size, the exact fee depends on whether the swap improves balance or reduces it. 

There is also an execution fee detailed below which is used to pay for the blockchain network costs. 

Execution Fee 

There are two transactions involved in opening / closing / editing a position: 

• User sends the first transaction to request open / close / deposit collateral / withdraw collateral 
• Keepers observe the blockchain for these requests then execute them 

The cost of the second transaction is displayed in the confirmation box as the "Execution Fee". This network cost is paid to the blockchain network.