LogoLogo
  • Introduction
    • Kujira Empowers Everyone
      • Ecosystem
      • Where Everyone Can Be a Whale
      • Grown-Up DeFi (GUD)
    • Why Kujira
      • User and Developer Experience
      • Values
        • Principles
        • Sustainability
    • Meet Team Kujira
  • Kujira Ecosystem
    • Our Products
    • Wider Ecosystem
    • Kujira Roadmap
    • How to Participate
    • Moving Funds to Kujira
    • Shipping Lane
    • Security
    • Media Coverage
    • Links
  • dApps & Infrastructure
    • Basics
    • Welcome to Kujira (Landing Page)
    • BLUE (Central Hub)
      • Dashboard
      • Wallet
      • Swap
      • IBC / Bridge
      • Mint
      • Stake
      • Govern
      • Developer
      • Product Guides
        • How to Send Tokens
        • How to Convert balances to KUJI
        • How to Swap tokens
        • How to Bridge tokens
        • How to use IBC
        • How to Mint USK
        • How to Stake KUJI
        • How to Redelegate KUJI
        • How to Unstake KUJI
        • How to Check the Status of Governance Proposals and/or Vote
        • How to Nominate a Candidate for the Senate
        • How to View Information on Senate Candidates
    • BOW (Liquidity Engine)
      • Dashboard
      • Pools
        • Featured Pools
        • All Liquidity Pools
          • Pool Overview
          • Provide to a Pool
          • Leveraged Liquidity
          • Stake LP with a Pool
      • Swap
      • Stake USK
        • Overview
        • Stake / Unstake
        • Rewards
      • Product Guides
        • How to View LP positions
        • How to Add Liquidity
        • How to Remove Liquidity
        • How to Provide Incentives
        • How to Check the Reward Schedule of a Pool
    • FIN (DEX)
      • Overview
      • How to Use FIN
        • Search and Filter by View
        • Price Chart and Charting Tools
        • Orderbook status and Recent Trades
        • Personal Order Activity
        • Spot and Margin Trade UI
          • Isolated FIN Margin
      • Listing tokens on FIN
      • Coingecko API
      • Product Guides
        • How to Buy KUJI Using axlUSDC
        • How to Sell ATOM for USK
        • How to List a New Pair
        • How to Toggle View to see Certain Pairs
        • How to Save Favourite Pairs
        • How to Check Unclaimed Orders
        • How to Navigate to BOW Pools
        • How to Look at Your History
    • FINDER (Explorer)
      • Product Guides
        • How to View a Wallet's Balance
        • How to Bookmark Wallets for Tracking
        • How to View and Manage Bookmarked Wallets
    • GHOST (Money Market)
      • Basics
      • Dashboard
      • Borrow
      • Lend
    • ORCA (Liquidations)
      • Basics
        • Lending Markets
          • Analytics
          • USK Lending Markets
            • Isolated FIN Margin
          • xAsset Lending Markets
      • How to Integrate ORCA
      • Product Guides
        • How to Bid on Collateral
        • How to View Active Bids on Collateral
        • How to View the Analytics on a Liquidation Market
    • PILOT (Launchpad)
    • POD (Cross-chain Staking)
      • Product Guides
        • How to Stake any Cosmos Layer 1 Token
        • How to Redelegate any Cosmos L1 Token
        • How to Unstake any Cosmos L1 Token
    • Pond (Developer Toolkit)
    • (Retired) SENATE (Grant Oversight)
      • Senators
      • Constitution
      • Treasury
      • Contacting the Senate
      • Past Senate Proposals
      • Past Senate Meetings
      • Transparency
    • Sonar (Native Wallet)
      • Basics
      • Setup
        • Create a wallet
        • Fund your wallet
        • Customize your settings
      • Using Sonar
        • Mobile
          • Home
          • Swap
          • Launch
            • Trade
            • Mint
            • Borrow
            • Liquidate
            • Launch (PILOT)
            • Buy gift cards with Bidali
            • Fin orders (dashboard)
            • Mint & manage USK positions (dash)
            • Borrow on GHOST (dashboard)
          • Stake
          • Send/Receive
        • Desktop
    • USK (Stablecoin)
      • Basics
      • Technical Specifics
      • Use Cases
      • Transparency
      • How to Mint USK
  • Developers
    • Developer Kickstart Page
    • Smart Contracts
      • Token Factory
      • Price Oracle
      • Scheduler
      • Entropy Beacon
    • Indexers
      • SubQuery
    • Core Module Accounts
    • List of Tokens
    • dApp Front Ends
      • FIN
    • Contacting the Team
  • Tokenomics
    • KUJI Token
      • Staking KUJI
      • Staking Tiers and Symbols on BLUE, FIN, and ORCA
      • KUJI Sustainability
      • Kujira Governance
      • Lending and Borrowing KUJI
      • Buying Kujira NFTs
  • Validators
    • Run a Node
      • Create a validator
      • Oracle Price Feeder
      • Tips
    • Cosmovisor Setup
    • Community Tooling
    • Staking Rewards
    • Genesis Validator Allocation
  • Governance
    • Staking
      • Staking Overview
      • Redelegate
      • Unbond
      • Slashing
      • Staking UI
    • Vote on Proposals
    • Submit a Governance Proposal
    • (Retired) The Kujira Senate
      • Treasury
    • Discord Governance Forum
    • Capybara Labs
    • Smart Stake
  • Our Venture-Builder Program
    • Overview
  • Community
    • Kujira Amplifier
    • Kujira Communities
    • Kuji Kast
    • Kujira News
    • Kujira Support
      • Support Ticket System
      • Cosmobot
    • Kujira Social Media
      • Discord
      • Telegram
      • Twitter
      • WinkHUB
      • Medium
      • Reddit
      • Instagram
      • YouTube
  • Help Center
    • Kujira Classroom
    • FAQ
    • Handy Tools
    • Glossary
    • Common Error Messages
  • Brand Assets
    • Colors
    • Logo Options
      • Kujira Brand
      • Native Token Logos
      • Product Logos
      • Legacy Logos
    • Fonts
Powered by GitBook
On this page
  • Overview
  • Margin trade safely
  • Placing spot orders
  • Mechanism
Edit on GitHub
  1. dApps & Infrastructure
  2. FIN (DEX)
  3. How to Use FIN
  4. Spot and Margin Trade UI

Isolated FIN Margin

PreviousSpot and Margin Trade UINextListing tokens on FIN

Last updated 1 year ago

Overview

Isolated FIN Margin is a type of margin product that allows leverage trading of up to 2.5X on certain FIN trading pairs. All compatible FIN pairs have a 2.5X logo.

Margin trade safely

Margin trading in cryptocurrency allows you to earn substantial profits, diversify your position, and learn trading strategies. The profits are better because of the high relative value of trading positions, and you can open multiple positions with little investment. However, crypto margin trading can also result in significant losses because of its extremely volatile nature and greater risks. Therefore, if you are new to margin trading in cryptocurrency, you have to be more cautious.

Placing spot orders

To use isolated margin on a suitable FIN trading pair, first navigate to the 'Isolated Margin tab:

A projected daily interest rate, the current base asset oracle price, the projected base asset entry price, as well as the margin position liquidation price are all displayed as part of the trading UI and can be examined in detail before deciding to open the long position.

Isolated margin positions are special cases of margin that correspond to USK collateral positions used to mint USK which have corresponding liquidation thresholds. Positions are liquidated in progressive stages rather than all at once.

Mechanism

The FIN isolated margin long contract effectively works by minting USK backwards. For the sake of convenience, let's assume the trading pair of interest is ATOM/USK. Suppose the specified deposit amount is 1000 USK and the leverage factor has been chosen to be 1.4. In that case, the funding amount can be calculated as (the initial USK deposit amount) * (the chosen leverage factor - 1) amount of USK = 1000*(1.4-1) or 400 USK. Next, the following 4 step process takes place instantly:

At time 0, 1000 USK is deposited at a chosen leverage factor of 1.4. At time 1, 400 USK is minted (unbacked and in reverse) based on the promise of future ATOM backing. At time 2, the 1000 initial USK deposit + the 400 minted USK are used to purchase 1400 USK worth of ATOM on the market using FIN. Finally, at time 3, 1400 USK worth of ATOM are used to back the 400 minted USK.

The above position allows the user to have exposure to 1400 USK worth of ATOM with debt/borrow obligations of 400 USK by using 1000 USK upfront. The benefit is that the initial 1000 USK is leveraged at a factor of 1.4X and assuming ATOM price increases while the position is open, then the margin will make more money than it would have by simply buying 1000 USK worth of ATOM upfront.

The highest possible leverage is 2.5X. In this case, a USK collateral debt position is minted at 60% LTV. Maximum leverage is risky as USK CDP positions start to be liquidated as soon as the LTV passes the 60% threshold.

Margin is allowed on most collateral types when paired with USK on FIN. Currently margin is only unavailable for gPAXG (Paxos Gold bridged over to Kujira using ). All margin liquidations are handled by ORCA. Read more specifics about how this process works .

It is advisable to acquire knowledge about hedging and risk management. Even with adequate knowledge to identify market trends, , it is always best to remain cautious with crypto margin trading.

To create a FIN margin position, first navigate to a FIN trading pair that has isolated margin trading available. Next, select an amount of USK to leverage and a leverage factor to use to gain exposure to a corresponding amount of the equal to the product of the current asset pair exchange rate, the USK amount, and the selected leverage factor for as long as the margin position is open.

entry and exit points
USK
base asset
Gravity Bridge
here
2.5x FIN Margin logo
Page cover image