Remove Long Position

Detailed procedures for Removing long positions

The example above assumes that the KLAY 3x long position deposit user opened positions at 1 KLAY = 0.5 USDT, and after a year closed all positions at 1 KLAY = 0.8 USDT.

User's account status at the time of opening is as follows.

1) Price of KLAY at opening: 1 KLAY = 0.5 USDT

2) Earn USDT single pool deposit interest on my asset 1,000 USDT (3.00% per year), Earn KSP reward 3) Earn KLAY single pool deposit interest on position asset 5,982 KLAY (2.00% per year), Earn KSP reward

4) ) USDT Utilization cost for utilized asset 3,000 USDT incurs (6.00% per year)

At the time of closing the position after 1 year, the account situation is as follows.

1) Price of KLAY at closing: 1 KLAY = 0.8 USDT

2) My Asset = 1,000 USDT *(1+0.03) = 1,030 USDT = $ 1,030.00

3) Position Asset = 5,982 KLAY*(1+0.02) = 6101.64 KLAY = $ 4,881.31

4) Utilized Asset = 3,000 USDT*(1+0.06) =3,180 USDT = $ 3,180.00

Step 1

• When requesting position close, the utilized asset, USDT, is first returned using KLAY, a long position token deposited in a single pool.

• To return the utilized 3,180 USDT, 3986.96088 KLAY has to be swapped for USDT from the KLAY/USDT pool.

[Reference] Calculation of the quantity of KLAY (x) needed to return 3,180 USDT

1 KLAY = 0.8 USDT, 0.3% swap fee will incur during swap. x = 3,180/((1-0.003)*0.8) = 3986.96088265 KLAY

Step 2

• Close the position by returning the 3,180 USDT earned.

• Partially returning the assets lets the user decide how many positions to close.

The following assets will be distributed to the user who has completed depositing long positions as described above.

1) My Asset 1,030 USDT (Deposit interests + 30 USDT earned)

2) Position Profit + 1,701.31 USDT (=$4,881.31- $3,180.00)

3) Additional KSP rewards from USDT and KLAY pool