Position Deposit Details Policy
Price Oracle
Price Oracle measures and applies pricing standards related to asset deposit sizes, automatic returns based on asset utilization ratios, etc. (Different from the pool exchange rate)
With stable tokens, a fixed value ($1.0) is used.
Taking liquidity of assets into consideration, the price of other tokens is determined based on the price of the central exchange, such as Binance, Upbit, Bithumb, Coinone, Huobi, Gate.io, etc., and the median of KLAYswap's pool exchange ratio (price).
Profit, Cost, Expected Details
The return (%) and utilization cost (%) of each position are adjusted in real-time based on the state of each pool of assets deposited, secured, and utilized.
The maximum expected return on the position deposit is calculated as follows: (return on assets deposited per year + return on assets secured per year - cost of assets utilized per year). The annual return rate includes both deposit rates and KSP distribution rates, and the annual cost is the cost of assets utilized by users.
The Yield on Deposit (%) is the expected return from tokens distributed to depositors according to the utilization rate of a single pool.
The KSP Distribution Yield (%) indicates the expected annual return (APR) from the KSP tokens distributed from the pool
Utilization Cost (%) represents the calculated annual interest expense (APR) payable on asset utilization.
PNL (Profit and Loss) refers to unrealized returns for open positions. Based on the current price of the token (Price oracle) at the end of the position, PNL is calculated as (My Deposited Asset Value + Reserved Asset Value - Utilized Asset Value) - Total Principal, actual returns may differ from expected returns depending on liquidity pool conditions and token price.
ROE (Return on Equity) is the percentage return on the total principal invested by the user, and the calculation is as follows. * ROE(%) = (PNL / Total Principal) * 100
The following figures are real-time estimates and may differ from the actual data.
Open Position Policy
Positions can be opened by setting the position multiple according to the dollar value of deposited stable assets. Users will open up positions by utilizing assets in a single pool with the size of (Value of Deposited Assets in Dollars)*(Multiple of Selected Positions). Users’ investment can be up to three times their deposit.
For long position deposits, assets are utilized from the same pool of assets as stable assets deposited by users, while for short position deposits, assets are utilized from a pool of tokens positioned by users. Upon returning the utilized asset, users must return utilized assets including accumulated interest based on the current real-time utilization cost (%) of the leveraged asset. As the position multiplier increases, more assets will be utilized and therefore more money will be paid.
When a position is deposited, the utilized asset is automatically swapped (traded) to open the position. A swap route performs routing between positioning tokens and deposited stable assets, and transaction fees are incurred. Depending on the pool, transaction fees will vary. (When a swap occurs in the KLAY>KSP>USDT path during depositing USDT and positioning KLAY, the transaction commission rate for each KLAY/KSP pool and KSP/USDT pool is applied)
As the transaction size (quantity) increases, the effect on the exchange rate between tokens in the pool increases, resulting in a price difference between the current price and the exchange rate. Multiple runs in small quantities can reduce the impact.
Positions can be opened after excluding the fees incurred during the swap. The size of the transaction may affect the price applied at the time of exchange, so the position opening may not proceed at the user's selected scale with the position multiple. To prevent such an occurrence, deposits are made only within the transaction range (slippage) assigned during swap, and may not be processed if the deposit exceeds the transaction range. (Revert) Check the Expected Details at the bottom for all relevant information before depositing.
The value of deposited assets, utilized assets, and secured assets fluctuates continuously, and an automatic return occurs at 90% asset utilization. Asset utilization ratio refers to the ratio of utilized asset value to asset value in my deposit, please review the asset utilization ratio and the return policy.
End Position Policy
In case the user requests to end the position, the retained assets that have been deposited in a single pool (For long position deposits, corresponds to long position tokens; for short positions, corresponds to stable tokens obtained by selling utilized assets) must be withdrawn, and the assets that have been utilized first must be returned. If the user has returned all of the assets, the user can withdraw the remaining assets and receive them in his or her wallet.
In the Close tab menu, the user can view the detailed quantity of utilized assets, the detailed quantity of assets returned to the protocol from their account, and the detailed quantity of assets received back into the wallet after the return has been completed.
When closing long position deposit, the utilized assets are withdrawn first by withdrawing the long position tokens being deposited into a single pool. When a swap occurs during the return process, the assets returned from a user's account to the protocol are returned with the swap fee. When price fluctuations make it impossible to return the entire utilized assets with long position tokens, additional returns may be made from the assets that were deposited by the user (my assets) when the position was opened.
When closing the short position deposit, the utilized assets are withdrawn first by withdrawing the stable tokens being deposited into a single pool. When a swap occurs during the return process, the assets returned from a user's account to the protocol are returned with the swap fee. When price fluctuations make it impossible to return the entire utilized assets with stable tokens, additional returns may be made from the assets that were deposited by the user (my assets) when the position was opened.
The amount of detailed assets that the user receives in his wallet at the end of the position can be found on the 'You get' page. Losses may occur depending on the price at opening and closing.
Due to the price impact when exchanging, it may not be possible to return all the assets at the end of the position depending on the size of the transaction. As a precautionary measure, withdrawals are made within the transaction range (slippage) set at the time of swap, and transactions may not proceed if it exceeds the range.
Automatic Return Policy for Asset Utilization Rates
The user who opens a long/short position will have to pay for the assets they utilize instead of utilizing additional assets to maximize revenue. In real time, costs are included in the utilized assets, and users can withdraw the assets once they return all the utilized assets that include costs.
In order to ensure a safe return of the utilized assets, if the ratio of the value of the utilized assets to the total value of the user's deposited assets (asset utilization ratio) exceeds 90%, automatic return may be initiated.
Asset utilization ratio is calculated as follows:
Deposits for long positions
Asset Utilization Rate (%) = (Dollar Value of Utilized Asset / (Dollar Value of My Asset + Dollar Value of Long Position Token)) * 100Deposits for short positions
Asset Utilization Rate (%) = (Dollar Value of Short Position Token / (Dollar Value of My Asset + Dollar Value of Secured Token)) * 100
Because asset utilization ratios can fluctuate rapidly due to changes in the value of deposited assets or their utilization, the user must check the asset utilization ratio regularly to avoid automatic returns.
To prevent automatic return, the user must deposit additional assets in multiples of 0x, or return assets in the Close tab (Close tab).
With automatic returns, users receive their remaining assets after returning assets used as deposited assets and subtracting the automatic return fee of 20%. If swaps occur during the automatic return process, depending on the size of the transaction, the user may not be able to return all of the assets due to price impacts. Due to the nature of the automatic return, all utilized assets will be returned as full deposit assets, so it is possible that the user will not be able to receive any assets after an auto-return.
The remaining assets can be received in the [Return History] section after clicking My Deposited Assets’ [Asset Details] button.
Automatic return fees (20%) are used to return single pool assets that have not been returned as a result of rapid price fluctuations.
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