leverage trading

Opening or closing a position

Diamonde offers leveraged contracts with up to 30-50x leverage on the initial investment. Users can open long or short positions based on their desired market direction. Upon closing a position, profits from long positions are paid in the asset being longed (for example, if you go long on ETH, profits will be paid in ETH), while profits from short positions are settled in the same stablecoin used to open the position (such as USDC or USDT).

Managing Positions

Once a trade is initiated, it will appear under the "Positions" tab. Users can manage their leverage and liquidation price by clicking the "Edit" button, which allows them to deposit or withdraw collateral accordingly.

It is important to note that each time a position is opened or collateral is deposited, a snapshot of the collateral’s USD value is taken. This value will remain fixed, even if the collateral’s price fluctuates. For example, if your collateral is 0.1 ETH and the price of ETH at that time is $3,529.40, the value of your collateral will be recorded as $352.94, regardless of any future price changes.

A 0.3% swap fee is applied when depositing collateral into a long position to prevent deposits from being used for zero-fee swaps. This fee applies exclusively to the conversion of assets to USD value, such as converting ETH to its USD equivalent.

However, this fee does not apply to shorts, and there is no fee for withdrawing collateral from longs or shorts.

Stop loss/take profit orders

You can set stop-loss and take-profit orders. Once a trigger order is created, it will be visible in both the position row and the "Orders" tab. Orders can be easily edited, and you can adjust the trigger price as needed.

Please note that if you manually close a position, any associated trigger orders will remain active. If you do not wish for them to stay open when opening future positions, you will need to cancel them manually.

It is important to note that orders are not guaranteed to be executed, as this may occur for various reasons.

  • The quoted price is the total of the transaction price.

  • The mark price may not reach the specified price, or it may reach the specified price but not remain at that level long enough for the order to be executed.

In some cases, there may be no custodian available to execute the order. Additionally, trigger orders are market orders and are not guaranteed to be executed at the trigger price.

Fees and allocation

Opening/closing fees are 0.1% of the position size.

  • Swap fees: If a swap is required when closing a position, a swap fee ranging from 0.2% to 0.8% of the dynamic collateral size will be charged.

  • Borrowing costs: The borrowing cost is calculated as follows: (borrowed assets / total assets in the vault) * 0.01%, and is accumulated on an hourly basis.

  • Execution fees: When a user initiates the first trade to open/close a position, deposit, or withdraw collateral, the price guardians monitor and execute these requests.

  • 30% of the fees generated each week will be distributed to $veAMD holders, while the remaining 70% will be added to the vault. The accumulated fees in the vault will be used to repurchase $DIA tokens and gradually build deeper liquidity in the DIA-USDT pool.

Summary of Advantages for the Diamonde Trading System:

Comprehensive Fee Structure: The detailed and clear fee model, including opening/closing fees, swap fees, borrowing costs, and execution fees, ensures transparency for users and facilitates better cost management.

Automated Risk Management: The integrated Stop-Loss and Take-Profit orders allow users to automatically close positions at predefined price points, effectively managing risks and reducing the need for constant monitoring.

Efficient Liquidity Management: The protocol ensures accurate market pricing and liquidity through dynamic pricing mechanisms supported by Chainlink Oracles and major exchanges, minimizing slippage risks and maintaining liquidity stability.

Incentive for Participation: The fee-sharing mechanism incentivizes $veAMD holders by returning a portion of the fees, further aligning user interests with the protocol’s long-term development.

Sustainable Tokenomics: The protocol uses accumulated fees for $DIA token buybacks and liquidity enhancement in the DIA-USDT pool, driving token value growth and strengthening market liquidity.

Scalable and Flexible: Users can customize their trading experience by choosing leverage, opening long/short positions, and setting trigger orders, ensuring a highly adaptable trading environment suitable for various market conditions and strategies.

Transparency and Security: The decentralized nature of the protocol, along with secure price guardians and transparent fee distribution, builds user trust and enhances the overall security of funds and transactions.

Last updated