D4X.io - Documentation
  • WELCOME
    • 🖐️D4X.io: Decentralized Margin Trading Protocol
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      • Open position
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  • PRODUCT
    • 🧬Smart contracts scheme
    • 🚸User Cases
      • Case 1. Trader Open Position
      • Case 2. Trader Close Position (with profit)
      • Case 3.1. Liquidation (normal case)
      • Case 3.2. Liquidation (with loss & enough iFund)
      • Case 3.3. Liquidation (with loss & empty iFund)
      • Case 4. Deposit ALP Pool
      • Case 5. Withdraw ALP Pool
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    • 🔗Addresses & deployments Smart Contracts
      • Addresses Main Protocol
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      • Addresses ALP Auto Leverage Pools dfPool
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  1. PRODUCT
  2. User Cases

Case 3.2. Liquidation (with loss & enough iFund)

PreviousCase 3.1. Liquidation (normal case)NextCase 3.3. Liquidation (with loss & empty iFund)

Last updated 1 year ago

Example of liquidation position in the scheme:

Market exchange rate down to 1795 USDT for 1 ETH - lower then margin call level.

Liquidation engine initiates liquidation the position in 5 ETH.

Reward for Credit funds 10% annual rate for 3 days = 8 USDT

Reward in Deposit protocol 2% annual rate for 3 days = 0.0008 ETH = 2 USDT

Just 90% of total reward goes to ALP - 9 USDT

Liquidation engine receives liquidation fee 10 USDT

Insurance fund (iFund) cover all loss of of liquidation or exchange inefficiency

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