Suggestions on settlement solution of u standard contract position explosion

u Suggestions on settlement solution of position explosion of standard contract

U Will the standard contract explode ？ Xiaobian takes the double contract of bitcoin to calculate ：

Suppose the leverage ratio is N, Regardless of capital rate , The selling price is as follows , Later, we will talk about how to calculate the position explosion price of the currency standard .

Long and short positions

Currency standard （ The subject matter of mortgage ） fall 1/(N+1) rose 1/(N-1)

U Standard （ Mortgage legal currency ） fall 1/N rose 1/N

Suppose you double the lever N=1

If U Standard , If you are long , The same as the stock , Unless the currency price returns to zero, it will not explode , If you're short , rose 100% It broke out

If the currency standard , If you are long , The price of the currency has fallen 50% Burst warehouse , If you're short , Never sell out .

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Mortgage legal currency U Standard is very intuitive , I won't go into details . Now let's talk about how to calculate the currency standard .

Suppose you have a BTC Make a deposit , Double lever , When opening the position, the currency price is (USD), After a period of time, the currency price became (USD).

Do more :

When opening the position, you mortgaged all BTC As a security deposit , Double leverage , So you borrowed a USD, Change to one BTC. To sum up, the state after opening is ： You hold a BTC, I owe the exchange USD, The mortgage is on the exchange BTC.

At a certain time, when the price of money changes to , You have BTC Value USD, So profit and loss is a USD.

Because of this time BTC The price for , So the mortgage BTC The value is USD.

What is the selling price ？ It is at this price that your mortgage just fills your losses . If you fall further, you will be insolvent , The exchange loses , So when you reach this price , The exchange will force you to close your position . Specifically, solve it , It means that if the opening price falls, the position will burst .

The situation of short selling is very similar , Copy and paste it

Short :

When opening the position, you mortgaged all BTC As a security deposit , Double leverage , So I borrowed a BTC, Change to one USD. To sum up, the state after opening is ： You owe the exchange BTC, Holding USD, The mortgage is on the exchange BTC.

At a certain time, when the price of money changes to , You owe the exchange BTC Value USD, So profit and loss is a USD.

Because of this time BTC The price for , So the mortgage BTC The value is USD.

What is the selling price ？ It is at this price that your mortgage just fills your losses . If it rises again, it will be insolvent , The exchange loses , So when you reach this price , The exchange will force you to close your position . Specifically, solve it , It means that if the opening price rises, the position will burst .

U Liquidation rate of position explosion of standard contract . The specific adjustment details are as follows ：

U Standard contract

U Standard contract

Liquidation rate of position explosion （ Before adjustment ）

Liquidation rate of position explosion

（ After adjustment ）

BTCUSDT Sustainability 、 Delivery contract , And BTCBUSD Perpetual contract

0.30%

0.60%