# Remove Short Position

## **Detailed procedures for** Remov**ing Short positions**

<figure><img src="https://1592049914-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2F-MJygKa-Pq2tO-w7HGny-887967055%2Fuploads%2FjSmg6JCccJuVANVoMeEP%2F(ENG)%20Short%20Deposit%20-%20Remove%20Position.png?alt=media&#x26;token=7aac8f05-a84c-46a0-8b16-3bf8b40895b4" alt=""><figcaption></figcaption></figure>

The example above assumes that the KLAY 3x short position deposit user opened positions at 1 KLAY = 0.5 USDT, and after a year closed all positions at 1 KLAY = 0.2 USDT.

Following is the account status at the time a position is opened for the user.&#x20;

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 USDT single pool deposit interest on position asset 2,911 USDT (3.00% per year), Earn KSP reward

4\) KLAY Utilization cost for utilized asset 6,000 KLAY 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 = 0.2 USDT**

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

3\) **Secured Asset**  = 2,991 USDT\*(1+0.03) = 3,080.73 USDT = **$ 3,080.73**

4\) **Utilized Asset** =  6,000 KLAY\*(1+0.07) \*$0.2=1,284 USDT = **$ 1,284.00**

&#x20;

&#x20;**Step 1**

* When requesting position close, the secured asset USDT deposited in a single pool is first used to return the utilized asset KLAY.
* To return the utilized 6,420 KLAY, 1,287.86359 USDT has to be swapped for KLAY from the KLAY/USDT pool.

\[Reference] Calculation of the quantity of USDT (x) needed to return 6,420 KLAY

1 KLAY = 0.2 USDT, 0.3% swap fee will incur during swap

x = 6,420/(1-0.003)\*0.2 = 1,287.86359 USDT

&#x20;

**Step 2**

* Close the position by returning the 6,420 KLAY earned.
* Partially returning the assets lets the user decide how many positions to close.

&#x20;

The following assets will be distributed to the user who has completed depositing short positions as described above.&#x20;

1\) My Asset 1,030 USDT (Deposit Intered **+ Earn 30 USDT**)

2\) Position Profit + **1,796.73 USDT** (=$3,080.73- $1,284.00)

3\) Additional KSP rewards from USDT and KLAY pool