Margin Trading
KTX.Finance offers leveraged trading opportunities on major trading pairs, providing traders with the ability to trade assets such as BTC, ETH, BNB, and MNT with up to 100x leverage.
Last updated
KTX.Finance offers leveraged trading opportunities on major trading pairs, providing traders with the ability to trade assets such as BTC, ETH, BNB, and MNT with up to 100x leverage.
Last updated
There are some parameters that you must be familiar with before opening a position, namely:
The collateral management system on is tied to the direction of the trader's positions.
For long trades, collateral is denominated in the respective trading pair's native currency. As an example, collateral for long ETH / USDT trades is denominated in ETH.
Conversely, collateral for all short trades are denominated in stablecoins irrespective of trading pair. Collateral for short positions are all denominated in stablecoins and settled in USDT.
Leverage is enabled by lending out assets in the KLP pool. Hence, traders have to pay a Borrowing Fee when conducting margin trades.
The maximum leverage allowed on KTX.Finance is 100x.
Trading pairs on KTX.Finance varies depending on the network on which the protocol is active.
For example, on the Mantle network, the KLP pool comprises 50% USDT and 50% BTC/ETH/MNT. Conversely, on BNB Chain, the KLP allocation is 50% USDT and 50% BTC/ETH/BNB.
Consequently, the trading pairs supported on both networks are different.
The available trading pairs are shown on the trade page of every network.
Traders can open trades in two directions on KTX.Finance.
Long Trades that speculate on asset prices increasing through your trading time frame.
Short Trades that speculate on asset prices decreasing through your trading time frame.
Long Trades: On KTX.Finance, long trades, such as long BTC positions, are physically settled. This means that the settlement occurs in the respective asset, for example, BTC.
Short Trades: In contrast, short trades on KTX.Finance are cash settled. This implies that the settlement for short positions is in USDT.
A market order is an order to long or short an asset at the market's current best available price.
However, it's important to note that the execution of limit orders is not guaranteed, and several conditions may prevent their execution.
Even if the mark price is reached, there may not be sufficient liquidity in the market to execute the order at the desired price
Executing the order would result in a position that exceeds the current maximum leverage allowed by the platform.
Note that Complex Orders are not available on BNB Chain.
Given the settlement mechanism of the KLP pool, traders are free of counterparty risk (i.e. all trades are 100% covered and traders will always be paid out in the event of a windfall).
However, the maximum OI is limited by the protocol's total value locked.
Long OI is limited by the amount of assets staked within the KLP pool.
Short OI is limited by the amount of stablecoins staked within the KLP pool.
A liquidation process is triggered if the asset prices move adversely against the user. In this process, the liquidation contract will automatically close (liquidate) the user's position to prevent further losses.
Users pay a Liquidation Feewhen a liquidation is triggered.
A liquidation is triggered when:
PositionCollateral / PositionSize < 0.0067 OR 0.67%
PositionLeverage > 150x
Liquidation Prices are calculated as such:
Longs: Liquidation Price = AvgPrice / ( 1 - 0.0067 + 1/RemainingLeverage)
Shorts: Liquidation Price = AvgPrice / ( 1 + 0.0067 - 1/RemainingLeverage)
The diagrams below illustrate the detailed liquidation logic and the calculation of the liquidation price.
is the use of borrowed capital to create larger positions in a certain trading pair. Traders trading with 10x leverage are able to open a position of $10,000 with only $1,000 in collateral.
The position collateral will be affected by both asset price movements and . In the event of adverse price movements, the traders leverage on the position will increase beyond the initially used leverage.
This could potentially result in a .
As mentioned in :
On the page, users can choose to execute 2 different kinds of orders on KTX.Finance with each fulfilling different functions.
A limit order on is an order to long or short an asset at a pre-determined price.
The mark price, derived from an , did not reach the specified price set in the limit order.
Complex orders allow users to open a position and set (limit orders) in one click. This can be toggled by selecting / keying in your desired exit parameters on the page.
is the total size of outstanding perpetual positions for an asset that have not been settled i.e. the total size of open trades.
Current open interest and open interest limits can be observed
PositionCollateral = Collateral - Losses - -
will cause liquidation prices to change over time. Hence, it is important to monitor your liquidation price.
Mantle Network
BTC / USDT ETH / USDT MNT / USDT
BNB Chain
BTC / USDT ETH / USDT BNB / USDT
Arbitrum
BTC / USDT ETH / USDT
ARB / USDT SOL / USDT LINK / USDT