How to Perpetual Trade
Opening a Position
Commence by selecting the perpetual market you wish to open a position on, such as WALEO-PERP, WETH-PERP, or WBTC-PERP. Proceed to choose Long or Short on the trading form based on your desired position.
Long Position:
Yields profit if the token price increases.
Incurs losses if the token price decreases.
Short Position:
Yields profit if the token price decreases.
Incurs losses if the token price increases.
Upon selecting your side, navigate to the You're Paying tab, choose the token, input the desired payment amount, and specify the leverage. Above the LONG/SHORT button, find a concise summary of your collateral and size in USD with the leverage multiplier (ranging from 1.1x to 20x).
Below the LONG/SHORT button, review order details, including:
Entry Price
Liquidation Price
Trading Fee
Borrow Fee (calculated hourly based on pool utilization)
Available Liquidity
While trades incur no price impacts, slippage may occur due to price variations between transaction submission and blockchain confirmation. Slippage, the difference between expected and execution prices, can be customized in the icon at the top right of the trading form.
When entering a position, whether Long or Short, it hinges on the available liquidity within the ALP pool.
Long Positions: For WALEO, WETH, and WBTC, it relies on the availability of the respective assets within the ALP pool.
Short Positions: In the case of WALEO, WETH, and WBTC, it depends on the availability of stablecoin assets, specifically WUSDC and WUSDT.
Managing Positions
Upon opening a position, it becomes accessible in your Positions list. To adjust leverage and liquidation price, click on Edit. This feature enables efficient management of your positions.
When initiating a position or depositing collateral, a snapshot of your collateral's USD value is captured. For instance, if your collateral is 1 WALEO and WALEO's price is 10 USD, your collateral is valued at 10 USD, remaining constant despite WALEO price fluctuations.
Profit and loss are proportionate to your position size. For instance, a long WALEO position of 1,000 USD with a 10% WALEO price increase yields a profit of 100 USD, while a 10% decrease results in a 100 USD loss. Conversely, a short position with a 10% WALEO price decrease garners a 100 USD profit, but a 10% increase incurs a 100 USD loss.
Leverage for a position is represented as Size (position size) / Collateral (position collateral).
Closing a Position
You can close a position by clicking on the Close button in the position row.
Long Positions: Profits from long positions are disbursed in the asset you are longing. For instance, if you've gone long on WALEO, your profits will be received in WALEO.
Short Positions: Profits from short positions are paid out in the same stablecoin used to open the position, such as WUSDC or WUSDT.
Take-Profit / Stop-Loss Orders
You can set take-profit and stop-loss trigger orders by selecting the Add TP or Add SL button in the position row.
Once you create a trigger order, it will be displayed in your position's row under the Take Profit and Stop Loss columns. You have the flexibility to edit the order and adjust the trigger price as needed.
In the event of manually closing a position, the associated trigger orders will be automatically canceled and closed, providing a seamless experience when opening new future positions.
Note: While TP/SL orders are set, keepers will monitor the mark price, when reaching the specified price level, TP/SL will close the whole position.
Liquidations
In the scenario of opening a long position in WALEO, where the position size surpasses the collateral value, there exists a critical point known as the Liquidation Price. This price is calculated based on the threshold where the loss amount, collateral value, and borrow fee collectively dip below 1% of your position's size. If the token's price surpasses this point, the system will automatically close the position.
It's crucial to note that the liquidation price is subject to change over time, particularly with leverage exceeding 10x and extended position durations. Regularly monitoring your liquidation price is essential. To mitigate the risk of liquidation, collateral adjustments and leverage fine-tuning can be performed through the Edit button in the position row, offering an avenue to add collateral and enhance the liquidation price.
Upon liquidation, any remaining collateral, net of losses and fees, will be kept as liquidation fee to the ALP pool.
Pricing
On AlphaSwap Perpetual Exchange, trades incur no price impact, allowing for the execution of large trades precisely at the mark price.
Mark prices are conveniently presented in the same row as the market name (e.g., WALEO-PERP). Notably, long positions and short positions are opened and closed at the same price as Market Price when initiating market order.
Fees
There are 2 types of fees on AlphaSwap Perpetual:
A flat 0.1% base fee when open or close position, applied on notional position size.
Borrow Fee, paid hourly on open positions, based on notional size.
Borrow Fee
For long positions, the collateral is the token being longed (e.g., WALEO for WALEO longs, WBTC for WBTC longs), while short positions are collateralized with supported stablecoins like WUSDC or WUSDT.
AlphaSwap Perpetual Exchange seamlessly integrates AlphaSwap Swap. Consequently, when a swap is required during the opening or closing of a position, regular DEX fees and slippages are applicable.
Aleo Network Fee
Users will have to pay ALEO for submitting transactions onto the Aleo chain.
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