From 1004953d55a8b3bddc21683ca59965ebd246a7ff Mon Sep 17 00:00:00 2001 From: Good Sanai Date: Thu, 1 Dec 2022 12:35:47 +0000 Subject: [PATCH] GitBook: [#73] No subject --- execution.md | 12 ++++++++++++ 1 file changed, 12 insertions(+) diff --git a/execution.md b/execution.md index 8c08934..005eb6c 100644 --- a/execution.md +++ b/execution.md @@ -70,6 +70,12 @@ The initial margin is calculated based on the matched prices ("Mark Price"). You can post margin in many stablecoins, which will then be automatically swapped into USDC using a third-party DEX (e.g. Uniswap), with the maximum amount of the stablecoin to meet the USDC margin requirement specified by you. +### Slippage setting + +Your execution price is deterministically calculated (see [Fee and Market Impact](execution.md#fee-and-market-impact)) based on the latest oracle price, but, especially during a fast moving market, there can be a gap between the screen price and the actual execution price (primarily due to changes in oracle price and outstanding positions on the platform). + +To mitigate this risk, you can specify Slippage when opening a position, so that the actual execution meets your execution price requirement. + ## Closing a position Closing a position will calculate the PnL based on the best price offered by the Liquidity Pool and transfer it to the trader, together with the margin posted. @@ -78,6 +84,12 @@ You may request the PnL to be transferred in a stablecoin other than USDC, in wh You can not lose more than the margin posted. +### Slippage setting + +Your execution price is deterministically calculated (see [Fee and Market Impact](execution.md#fee-and-market-impact)) based on the latest oracle price, but, especially during a fast moving market, there can be a gap between the screen price and the actual execution price (primarily due to changes in oracle price and outstanding positions on the platform). + +To mitigate this risk, you can specify Slippage when closing a position, so that the actual execution meets your execution price requirement. + ## Liquidation Outstanding positions are subject to liquidation if the relevant liquidation price is breached according to the price oracle ("Index Price").