gaianet/ktx.finance · Datasets at Hugging Face

text stringlengths 0 1.22k
In strongly trending markets (bull/bear), where there may be a notable Open Interest (OI) skew, traders might unilaterally enter either long or short positions, especially in markets with a strong trend (e.g., a bull market where most traders prefer long positions).
You can view the live OI composite here: https://stats.ktx.finance/
LPs can adopt a strategy that mirrors traders' trades. By doing so, LPs position themselves to profit in a similar manner to traders. This approach effectively hedges LPs against adverse Trader PnL movements. The risk management strategy creates a payment structure for LPs characterized by low risk and high return potential. This aligns with LPs' objectives to optimize returns while managing exposure to market dynamics.
Sophisticated hedging strategies for LPs are coming soon...

Margin Trading
KTX.Finance offers leveraged trading opportunities on major trading pairs, providing traders with the ability to trade assets such as BTC, ETH, BNB, and MNT with up to 100x leverage.
Before you open a position...
There are some parameters that you must be familiar with before opening a position, namely:
Collateral Management
Leverage
Trading Pairs
Types of Orders
Trading Settlement
Open Interest Limitations
Liquidations
Collateral Management
The collateral management system on KTX.Finance is tied to the direction of the trader's positions.
For long trades, collateral is denominated in the respective trading pair's native currency. As an example, collateral for long ETH / USDT trades is denominated in ETH.
Users still enjoy the flexibility to open long trades even if they do not possess the specific assets in their wallet.
For example:
A user only has USDT in his wallet and would like to long ETH. By using USDT as collateral, a swap router is employed to automatically convert the user's USDT holdings into the required asset (ETH, in this case) before initiating the trade.
Conversely, collateral for all short trades are denominated in stablecoins irrespective of trading pair. Collateral for short positions are all denominated in stablecoins and settled in USDT.

Leverage
Leverage is the use of borrowed capital to create larger positions in a certain trading pair. Traders trading with 10x leverage are able to open a position of $10,000 with only $1,000 in collateral.
Leverage is enabled by lending out assets in the KLP pool. Hence, traders have to pay a Borrowing Fee when conducting margin trades.
The maximum leverage allowed on KTX.Finance is 100x.
PositionLeverage = PositionSize / PositionCollateral
The position collateral will be affected by both asset price movements and borrowing fees. In the event of adverse price movements, the traders leverage on the position will increase beyond the initially used leverage.
This could potentially result in a liquidation.

Trading Pairs
Trading pairs on KTX.Finance varies depending on the network on which the protocol is active.
For example, on the Mantle network, the KLP pool comprises 50% USDT and 50% BTC/ETH/MNT. Conversely, on BNB Chain, the KLP allocation is 50% USDT and 50% BTC/ETH/BNB.
Consequently, the trading pairs supported on both networks are different.
Mantle Network
BTC / USDT
ETH / USDT
MNT / USDT
BNB Chain
BTC / USDT
ETH / USDT
BNB / USDT
Arbitrum
BTC / USDT
ETH / USDT
ARB / USDT
SOL / USDT
LINK / USDT
The available trading pairs are shown on the trade page of every network.
KTX.Finance Trading Pairs on the Mantle Network

Trading Direction & Settlement
Traders can open trades in two directions on KTX.Finance.
Long Trades that speculate on asset prices increasing through your trading time frame.
Short Trades that speculate on asset prices decreasing through your trading time frame.
As mentioned in Providing Liquidity#market-making-with-klp:
Long Trades: On KTX.Finance, long trades, such as long BTC positions, are physically settled. This means that the settlement occurs in the respective asset, for example, BTC.
Parameters:
Entry Price: $10,000
Collateral: 1 BTC
Leverage: 50x
Reserved Amount: 50 BTC
Upon execution of this trade, 50 BTC will be reserved from KLP.
The following scenarios illustrate potential outcomes:
Exit Price = $10,100 (+1% price movement)
Profit Calculation: 1% * 50x = 50%
Result: The trader profits 50%, and 0.5 BTC from the Reserved Amount is paid out to the trader.
Exit Price = $9,900 (-1% price movement)
Loss Calculation: -1% * 50x = -50%
Result: The trader incurs a 50% loss, and 0.5 BTC will be added to the KLP pool.
Short Trades: In contrast, short trades on KTX.Finance are cash settled. This implies that the settlement for short positions is in USDT.

Parameters:
Entry Price: $10,000
Collateral: 1,000 USDT
Leverage: 50x
Reserved Amount: 50,000 USDT
Upon execution of this trade, 50,000 USDT will be reserved from KLP.
The following scenarios illustrate potential outcomes:
Exit Price = $9,900 (-1% price movement)
Profit Calculation: 1% * 50x = 50%
Result: The trader profits 50%, and 500 USDT from the Reserved Amount is paid out to the trader.
Exit Price = $10,100 (+1% price movement)
Loss Calculation: -1% * 50x = -50%
Result: The trader incurs a 50% loss, and 500 USDT will be added to the KLP pool.
Types of Orders
On the trade page(https://app.ktx.finance/trade), users can choose to execute 2 different kinds of orders on KTX.Finance with each fulfilling different functions.

Market Orders
A market order is an order to long or short an asset at the market's current best available price.
Limit Orders
A limit order on KTX.Finance is an order to long or short an asset at a pre-determined price.
However, it's important to note that the execution of limit orders is not guaranteed, and several conditions may prevent their execution.
The mark price, derived from an aggregate of exchange prices, did not reach the specified price set in the limit order.
Even if the mark price is reached, there may not be sufficient liquidity in the market to execute the order at the desired price
Executing the order would result in a position that exceeds the current maximum leverage allowed by the platform.
Complex Orders
Complex orders allow users to open a position and set take profits / stop losses (limit orders) in one click. This can be toggled by selecting / keying in your desired exit parameters on the trade page.

In strongly trending markets (bull/bear), where there may be a notable Open Interest (OI) skew, traders might unilaterally enter either long or short positions, especially in markets with a strong trend (e.g., a bull market where most traders prefer long positions).

You can view the live OI composite here: https://stats.ktx.finance/

LPs can adopt a strategy that mirrors traders' trades. By doing so, LPs position themselves to profit in a similar manner to traders. This approach effectively hedges LPs against adverse Trader PnL movements. The risk management strategy creates a payment structure for LPs characterized by low risk and high return potential. This aligns with LPs' objectives to optimize returns while managing exposure to market dynamics.

Sophisticated hedging strategies for LPs are coming soon...

Margin Trading

KTX.Finance offers leveraged trading opportunities on major trading pairs, providing traders with the ability to trade assets such as BTC, ETH, BNB, and MNT with up to 100x leverage.

Before you open a position...

There are some parameters that you must be familiar with before opening a position, namely:

Collateral Management

Leverage

Trading Pairs

Types of Orders

Trading Settlement

Open Interest Limitations

Liquidations

Collateral Management

The collateral management system on KTX.Finance is tied to the direction of the trader's positions.

For long trades, collateral is denominated in the respective trading pair's native currency. As an example, collateral for long ETH / USDT trades is denominated in ETH.

Users still enjoy the flexibility to open long trades even if they do not possess the specific assets in their wallet.

For example:

A user only has USDT in his wallet and would like to long ETH. By using USDT as collateral, a swap router is employed to automatically convert the user's USDT holdings into the required asset (ETH, in this case) before initiating the trade.

Conversely, collateral for all short trades are denominated in stablecoins irrespective of trading pair. Collateral for short positions are all denominated in stablecoins and settled in USDT.

Leverage

Leverage is the use of borrowed capital to create larger positions in a certain trading pair. Traders trading with 10x leverage are able to open a position of $10,000 with only $1,000 in collateral.

Leverage is enabled by lending out assets in the KLP pool. Hence, traders have to pay a Borrowing Fee when conducting margin trades.

The maximum leverage allowed on KTX.Finance is 100x.

PositionLeverage = PositionSize / PositionCollateral

The position collateral will be affected by both asset price movements and borrowing fees. In the event of adverse price movements, the traders leverage on the position will increase beyond the initially used leverage.

This could potentially result in a liquidation.

Trading Pairs

Trading pairs on KTX.Finance varies depending on the network on which the protocol is active.

For example, on the Mantle network, the KLP pool comprises 50% USDT and 50% BTC/ETH/MNT. Conversely, on BNB Chain, the KLP allocation is 50% USDT and 50% BTC/ETH/BNB.

Consequently, the trading pairs supported on both networks are different.

Mantle Network

BTC / USDT

ETH / USDT

MNT / USDT

BNB Chain

BTC / USDT

ETH / USDT

BNB / USDT

Arbitrum

BTC / USDT

ETH / USDT

ARB / USDT

SOL / USDT

LINK / USDT

The available trading pairs are shown on the trade page of every network.

KTX.Finance Trading Pairs on the Mantle Network

Trading Direction & Settlement

Traders can open trades in two directions on KTX.Finance.

Long Trades that speculate on asset prices increasing through your trading time frame.

Short Trades that speculate on asset prices decreasing through your trading time frame.

As mentioned in Providing Liquidity#market-making-with-klp:

Long Trades: On KTX.Finance, long trades, such as long BTC positions, are physically settled. This means that the settlement occurs in the respective asset, for example, BTC.

Parameters:

Entry Price: $10,000

Collateral: 1 BTC

Leverage: 50x

Reserved Amount: 50 BTC

Upon execution of this trade, 50 BTC will be reserved from KLP.

The following scenarios illustrate potential outcomes:

Exit Price = $10,100 (+1% price movement)

Profit Calculation: 1% * 50x = 50%

Result: The trader profits 50%, and 0.5 BTC from the Reserved Amount is paid out to the trader.

Exit Price = $9,900 (-1% price movement)

Loss Calculation: -1% * 50x = -50%

Result: The trader incurs a 50% loss, and 0.5 BTC will be added to the KLP pool.

Short Trades: In contrast, short trades on KTX.Finance are cash settled. This implies that the settlement for short positions is in USDT.

Parameters:

Entry Price: $10,000

Collateral: 1,000 USDT

Leverage: 50x

Reserved Amount: 50,000 USDT

Upon execution of this trade, 50,000 USDT will be reserved from KLP.

The following scenarios illustrate potential outcomes:

Exit Price = $9,900 (-1% price movement)

Profit Calculation: 1% * 50x = 50%

Result: The trader profits 50%, and 500 USDT from the Reserved Amount is paid out to the trader.

Exit Price = $10,100 (+1% price movement)

Loss Calculation: -1% * 50x = -50%

Result: The trader incurs a 50% loss, and 500 USDT will be added to the KLP pool.

Types of Orders

On the trade page(https://app.ktx.finance/trade), users can choose to execute 2 different kinds of orders on KTX.Finance with each fulfilling different functions.

Market Orders

A market order is an order to long or short an asset at the market's current best available price.

Limit Orders

A limit order on KTX.Finance is an order to long or short an asset at a pre-determined price.

However, it's important to note that the execution of limit orders is not guaranteed, and several conditions may prevent their execution.

The mark price, derived from an aggregate of exchange prices, did not reach the specified price set in the limit order.

Even if the mark price is reached, there may not be sufficient liquidity in the market to execute the order at the desired price

Executing the order would result in a position that exceeds the current maximum leverage allowed by the platform.

Complex Orders

Complex orders allow users to open a position and set take profits / stop losses (limit orders) in one click. This can be toggled by selecting / keying in your desired exit parameters on the trade page.