🪖Position Parameters

Several limitation are in place for the safe and orderly functioning of the platform.

Max Payoff on Short position (temporary)

One of the specificities (currently) of the short positions are the max payoff set at 100% PnL.

The platform, as a fully asset-baked perp, require the user to lock his max profits (in collateral denomination) upfront, and so pay borrow fee on that amount USD value.

For Longs no problem here, but for Shorts... it's trickier.

Do you want a higher (x5?) max payoff, but paying 5x borrow fees the whole time? Probably not. In order to prevent surprises, we currently kept a 100% max payoff, but we are working on a novel feature that will readjust the borrow amount (and so cost) as the position PnL grows, that way no wasted fees from the trader PoV. This will involve a clockwork thread setup at short position open that will track the PnL and re borrow more asset as it grows dynamically (in the limit of available liquidities).

Custody level

// custody.rs in CustodyParams
max_position_locked_usd: u64

Limits the max USD size of a position. This is mainly used for progressive rollout and somehow ensuring that more user can partake while the platform liquidity aren't enough. This is just a fence, as a user with multiple accounts could bypass that easily. Launch value is planned to be 100_000

// custody.rs in CustodyParams
max_cumulative_short_position_size_usd: u64

Limits the maximum cumulative amount of short that can be opened on a given custody. 0 value means no specific limit, translating into being able to use the whole stable supply to short the asset of that Custody.

This is helpful to limit downside for LP on riskier asset, when there can possibly be price manipulation/insider information, in the case of some governance token or ecosystem meme coins.