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RLP Trade

The RLP Index Contract is a contract that settles profits and losses in RLP.
RLPTrading positions are derived from liquidity provided by liquidity providers.
Leveraged positions on an asset are opened by executing a ‘Long’ or ‘Short’.
  • 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
For leverage trading, please see the below sections for more information.

Opening a position

Go to Rollup.Finance [Trade] https://app.rollup.finance/#/trade for leverage trading.
  1. 1.
    Click on "Long" or "Short" depending on which side you would like to open a leverage position on.
  2. 2.
    After selecting your side, key in the amount you want to pay and the leverage you want to use.
In the below example 0.006 ETH worth 11.46 USD is being used to buy a 30x ETH (Ethereum) long position of size 333.93 USD.
The "Entry Price" is $1,911.49 and the Liquidation Price is $1,876.38.
The trading fee to open a position is 0.1% of the position size.
There is also a "Borrow Fee" that is deducted at the start of every hour. This is the fee paid to the counter-party of your trade. The fee per hour will vary based on utilization, it is calculated as (assets borrowed) / (total assets in pool) * 0.01%.
The execution fee is 0.0015 ETH to be paid to the blockchain network.
More details about the execution fee: Fee Policy.
In the current version, Rollup.Finance only supports trading with up to 30X leverage. In the near future, you can trade with up to 100x leverage, so stay tuned!

Managing Positions

After opening a trade, it is visible in a list under your Positions, as shown above. Various actions are available to manage your position by clicking "Collateral" button:
  • Deposit: allows you to deposit additional collateral to reduce your leverage
  • Withdraw: allows you to withdraw existing collateral to increase your leverage

Deposit

Additional collateral can be deposited to an open position by clicking on ‘Deposit’ in your Positions list.
Depositing additional collateral reduces the leverage and liquidation price of a trade. The image below shows the impact of adding additional collateral to an open position.

Depositing collateral helps to reduce the risk of position liquidation

Withdraw

Collateral can be withdrawn from an open position by clicking on ‘Withdraw’ in your Positions list.
Withdrawing collateral increases the leverage and liquidation price of a trade. The image below shows the impact of removing ~20% of the collateral on an open position.

Note: A maximum withdrawal limit is applied to prevent the position from getting liquidated.
Withdrawing collateral increased the risk of position liquidation

Closing a Position

You can close a position partially by clicking on the "Close" button, or completely by clicking on the "Close All" button.
For long positions, profits will be automatically converted to ETH using USD as the unit of denomination, you would get your profits as ETH.
For short positions, profits also are using USD as the unit of denomination and automatically converted to USDC, and you would get your profits as USDC.

Close a position partially

Close a position partially will reduce size and keep leverage the same: only the sizing of the trade is affected (Position Size, Collateral Value, Net Value), and not the Leverage or Liquidation Price.
The image below shows the impact of closing ~25% of an open position whilst keeping leverage the same.

Close a position completely

Close a position completely means that the position will be closed at the current market price.
The trading fee to close a position is 0.1% of the position size.

Limit Order

You can select a limit order among the order types for leveraged trading.
Limit order is an order that will be executed automatically when the target price is reached. Therefore you need to pay the execution fee in advance to ensure the order is executed.
The limit order will affect the position in the same direction of the same trade pair. The image below shows the impact of limit order on positions in the same direction and with the same trading pair.

Limit Order for Stop-loss and Take-profit orders

You can set stop-loss and take-profit orders by clicking on the "Close" button and selecting the "Limit order" tab.
After creating a Limit order, it will appear in your position's row as well as under the "Orders" tab, you can edit it the order and change the trigger price if needed.
Note that orders are not guaranteed to be executed.This can occur in a few situations including but not exclusive to:
  • Insufficient liquidity to execute the order
  • The mark price which is an aggregate of exchange prices did not reach the specified price
  • The specified price was reached but not long enough for it to be executed
  • No keeper picked up the order for execution
  • Additionally, trigger orders are market orders and are not guaranteed to settle at the trigger price.
If you close a position manually, the associated trigger orders will remain open, you would need to cancel them manually if you do not want the order to be active when opening future positions.

Liquidations

The Liquidation means that the positions will be automatically closed when the following occurs:
  1. 1.
    Liquidation is executed when the minimum collateral value is less than 1% of the position: Minimum collateral value = (collateral - opening fee) * leverage / 100
  2. 2.
    Liquidation is executed when the Minimum Collateral - Closing Fee - Borrow Fee - Liquidation Fee(5U) ≤ 0.
Rollup.Finance has execution bots that focus on fulfilling limit orders and liquidations.
The bot constantly monitors these orders and executes them as soon as the price approaches them. Limit orders have an extra fee to ensure execution at the desired price, regardless of market volatility.
The fees will be rewarded to the executor to incentivize quick action.
Know more about the Execution Fee.
Last modified 5mo ago