Margin Trading

Borrowing Interest

By opening a Margin position, both long and short, you will be paying interest to the borrowing fund from the lending pool. The interest rate is dynamic, based on the utilization of the pool, which means the rate when you are getting into a position isn't always the same through the holding period.

See the borrowing interest model:

Interest Rate Model

Risk Ratio

Debt Value: Total debt value of your position, it’s the value of tokens you borrowed plus the borrowing interest

Position Value=Debt+ Collateral It’s the value of your Margin trading position

Debt Ratio= Debt Value/ Position Value

Risk Ratio=Debt Ratio/ Liquidity threshold That shows how close your debt ratio is to liquidation threshold. Closer to 100%, greater risk of liquidation you’ll have. when it is equal to 100%, position will get liquidated.

PNL (Profit and Loss):

PNL=Position Value-Debt Value- Collateral Value

Advantages of ATE Finance

1.Better trading experience and lower slippage

In case of small amount trading, the market depth is better

The first version of Margin Trading will support 6 assets such as BUSD/USDC/USDT WBNB/ETH/BTCB. Later, more DEXs and varieties of assets will be provided. More assets options can be added conveniently based on the AMM pools of DEXs.

Under the AMM rule of DEX's pools, traders experience small slippages of market price fluctuating. With integration of more DEXs gradually, trading experience will get better and better.

2. Secure Liquidation Mechanism avoids price manipulation on centralized exchanges

The Liquidation Mechanism Elephant Guard is applied to protect Margin Trading. In the event that your debt ratio has gone above the risk ratio, that is to say, when the risk ratio of the position reaches 100%, your position will be checked twice before being liquidated by the liquidator bot.

The specific steps are as follows:

Through the liquidation system, when a liquidation alarm occurs, the system will read and compare token prices both in decentralized exchanges and centralized exchanges at the same time. If the difference between the two prices is greater than 5%, it means that there could be an error, and liquidation will not be executed. If the difference is less than 5%, the position will enter Liquidation Pending List, and it will be confirmed again in the second minute. Only double-verified liquidation will be executed.

This ensures the safety of the user's position to the greatest extent, your position will not be liquidated due to instantaneous market volatility or price mistakes. The two price verifications also provide users with a time to increase collateral to cover positions to avoid unnecessary losses.