Let's dive into the nitty-gritty of how our trade logistics work. Here's a step-by-step breakdown:
Selecting Trade Parameters: When a user decides to open a trade, they start by specifying the position size and the desired leverage. These choices dictate the trade's dynamics and potential returns.
Funds Allocation: The trading process begins as the bot takes the user's funds and sends them to a dedicated third "user leverage wallet", separate from the user's wallet and the leverage pool. This is a crucial security measure in maintaining the separation of user and leverage pool funds at all times.
Leverage Pool Involvement: Simultaneously, the bot transfers funds from the leverage pool, calculated proportionally based on the user's chosen position and leverage size, to the same dedicated third "user leverage wallet". This collective pool of funds is used to initiate the trade.
Trade Execution: With the necessary funds aggregated in the dedicated wallet, the bot executes the trade, creating a position in the selected asset. This ensures that the user's risk and potential rewards are proportionate to their chosen leverage.
Tracking Trades: Once the trade is live, users can employ the /tracklev command to monitor their position's performance in real-time. This feature provides valuable insights into profits and losses.
Trade Closure: When the user decides to close the trade, the process is reversed. The borrowed funds, which facilitated the leverage, are returned to the leverage pool. The remaining funds, adjusted for fees, are sent back to the user's wallet, ensuring a seamless and transparent experience.
Gas Fee Considerations: Each leverage trade typically involves six transactions (five for liquidated trades), making efficient use of gas fees a priority. To accommodate these transaction costs, an additional 0.04 ETH is required on top of the position value. Any excess gas funds are promptly returned to the user's wallet following trade closure.
This meticulous trade logistics process ensures that users have a clear and secure pathway for executing leverage trades while maintaining control over their assets. It minimizes complexity while prioritizing transparency and efficiency at every stage.