leverage (multiple)
the magic never stops!
Last updated
Was this helpful?
the magic never stops!
Last updated
Was this helpful?
Synthetic Exchange architecture is quite innovative, because of the robust programming of CRT Token smart contracts. Not only is CRT Token used as USD collateral, for all cryptocurrencies supported on Synthetic Chain, but CRT Tokens also support leverage!
Following the contract logic for long & short CRT contracts page, users can simply purchase a multiple of contracts in the form of financial leverage. Going back to previously described long crtETH tokens series, and short crtLTC token series, we can demonstrate power of $CRT tokens in case to amplify their position with by purchasing more than single contract. In the excerpt below crtBTC contract traded at $64,217, and the user went long $64,450 indicating a trade in the CRT token amount of $233. In this instance, we deployed (1) contract, but cold simple increase to (10) contracts.
A crtETH long contract, and with the settlement price of $1,820 and spot price of $1,700, a difference in the amount of $120 (Settlement minus Price) is required to place the crypto trade. Let's assume that user would like to leverage this contract 10X, they can simply do so by purchasing 10 contracts.
In this example, the users will have to commit $120 x 10 = $1,200 worth of CRT Token. The payment, respectively will also equal the amount of CRT wagered as collateral = $1,200.
A crtLTC short contract, and with the settlement price of $82.50 and spot price of $77.25, a difference in the amount of $5.25 (Settlement minus Price) is required to place the crypto trade. Let's assume that user would like to leverage this contract 100X, they can simply do so by purchasing 100 contracts.
In this example, the users will have to commit $5.25 x 100 = $525 worth of CRT Token. The payment, respectively will also equal the amount of CRT wagered as collateral = $525.
