Traditionally, leverage is achieved by borrowing, while we provide leverage by position tokens of derivatives with a Cap/Floor Price.
The token price is defined as follows:
Long Position Token Price = Entry Price - Floor Price
Short Position Token Price = Cap Price - Entry Price
If you expect that the Bitcoin Price will rise, you buy 1 BTC of long position ($1000) when the Bitcoin price is $8000 with the Cap and Floor price of $10000 and $7000. If the Bitcoin price does rise to $9000, the long position price will rise to $2000 automatically. In this way, you are earning 100% (1000/1000) instead of 12.5% (8000/1000), with an 8x leverage.
|Unit:$||Entry Price||Equity||Last Price||Revenue||RoE|