Case Study

A case study of how exit position works in real life

1. Initial Trade

• Seller A sells 1,000 $WLFI at $1.

• Both A & buyer B deposit $1,000 collateral → total $2,000 locked.

2. Resell Position

• Buyer B resells position at $1.50.

• Collateral remains locked at $2,000.

3. Transfer of Position & Collateral

• Buyer C buys B’s position for $1,500.

• User B exits with $1,500 profit.

• Collateral remains locked at $2,000.

4. Settlement

• On the TGE settlement date, seller A must deliver $WLFI to user C.

• If seller A fails to settle, user C receives collateral from both A and B, totaling $2,000 excluding platform fee.