In this product doc, learn about margin trading and how the Margin v1.0: The Long Game works.

What is ‘Margin Trading’?

Margin trading is a type of trading where a trader borrows funds to increase their total trade size, which allows the trader to enter into positions that are larger than their initial collateral. This amplifies both profit potential and risk.

What will I be able to do with the first deployment of Margin Trading? And what will be the subsequent phases of Margin Trading at Sifchain?

Below is a tentative roadmap for the various phases of delivery for Margin Trading. These may adjust slightly due to user desires & feedback, market conditions, etc.

• Margin v1.0: The Long Game (initial release)
• Margin v1.0: The Long Game (subsequent releases)
• Margin: The Big Short
• Margin: The Open Trade (initial release)
• Margin: The Open Trade (subsequent releases)
• Margin: Deep Margin

From this point forward, this document will focus on the v1.0 solution and its included capabilities in the initial release, while simply touching on features that are to come in subsequent versions.

Which Pools are Margin Enabled?

• ATOM, USDC, and ETH. We will enable new pools to be margin enabled as time progresses.

About Margin Trading v1.0: The Long Game

How will Margin Trading v1.0: The Long Game work?

Margin Trading v1.0: The Long Game will allow traders to open long margin trading positions with borrowed funds from margin-enabled liquidity pools on the DEX. Margin Traders will pay interest on the borrowed funds. This interest will be automatically transferred to liquidity providers. The below example walks through how this will work.

Walkthrough: Opening, Managing, and Closing a Position

• Example 1: Sally wants to long ROWAN against USDC because she thinks that the price of ROWAN will go up relative to USDC.
• Example 2: Sally wants to long USDC against ROWAN because she thinks that the price of USDC will go up relative to ROWAN.

FAQ for Margin v1.0: The Long Game

1. What type of positions are available in Margin v1.0: The Long Game?
   1. In Margin v1.0: The Long Game, traders may open positions by longing ROWAN vs. a TKN (as shown in the example above), or by longing a TKN vs. ROWAN.
   2. In the case a user longs a TKN vs. ROWAN, interest will be paid to the liquidity pool in TKN.