Mechanism
How does Resell Position work on Whales Market?
With the new Resell Position feature, buyers can now resell their position of BUY ORDERS to Take Profit/Stop loss in the scenario where market condition shifts, even after the orders got filled.
In the first phase, the Resell Position mechanism will only apply to buy orders. Sell-side exits will be supported in future updates.
1. Resell Position Mechanism
Whales Market allows Buyers to exit their pre-market positions by reselling them before the token generation event (TGE), enabling greater flexibility and liquidity.
Initial Trade
The original seller creates a pre-market order to sell tokens. A buyer fills the order, and both parties lock collateral equal to the trade value to secure the agreement until the settlement date.
Resell Opportunity
Before the TGE, if the buyer decides to resell the position - due to market shifts or strategy changes - they can list the position for resale on Whales Market.
To safeguard buyer interests, orders cannot exceed a 80% increase from their original price
Position Transfer & Collateral Flow
When a new buyer accepts the resale order:
The new buyer pays the resale amount directly to the original buyer.
The original buyer's locked collateral is transferred to the new buyer as security for settlement.
The original buyer exits the position with their capital returned and any realized profit from the resale.
Note: Once you buy a resell order, your funds are transferred directly to the creator of that resell order.
In some exceptional cases, although very rare, if a third-party project does not create a liquidity pool for the token on the blockchain that we have listed, we may have to cancel trading of that token. In such cases, the buyer of the resell order will have to accept a loss and will only receive back the collateral from the original buyer.
Settlement Enforcement
On the settlement date, the Seller must deliver the agreed tokens to the Secondary Buyer (the holder of the position at the time of settlement). If the original seller does not settle, the current buyer will receive the collateral from both the original seller and the original buyer.
2. Example
A sells $WLFI at $0.10 → B buys $1,000.
B resells at $0.15 → C buys for $1,500.
If A fails to settle, C receives collateral from both A and B, totaling $2,000 excluding platform fee.
FAQ
What is the Resell Position mechanism?
This is a new trading mechanism that, in its first phase, applies only to buy orders. It allows the original buyer to resell their position before the Token Generation Event (TGE).
How does the initial trade work?
A seller lists a Pre-Market buy order for tokens. A buyer then fills this order, and both parties lock collateral equal to the trade value until the settlement.
How can a position be resold?
Before the TGE, the original buyer can relist their position for resale. This is useful for adapting to market shifts or changes in strategy.
How are the collateral and fund handled during a resale?
The new buyer pays the resale price directly to the original buyer. The original buyer's locked collateral is then transferred to the new buyer as settlement security. The original buyer exits the position, taking their capital plus any profit from the resale.
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