📖Case study

A case study of how exit position works in real life

1. Initial Trade – User A & User B

• User A wants to buy 1,000 $IKA tokens at $1.00 per token (total: $1,000) and locks $1,000 as collateral.

• User B, the Seller, fills the order and also locks $1,000 as collateral.

• The trade is now active and set to be settled on the token generation event (TGE), where User B will deliver the 1,000 $IKA tokens to User A.

1. Position Resell – User A → User C

• Before TGE, market conditions improve and $IKA’s perceived value increases.

• User A decides to resell the position on Whales Market for $1,300 (i.e., $1.30 per token).

• User C, a new Buyer, accepts the resale offer and locks $1,300 - which will be transferred directly to A.

1. Transfer of Position & Collateral

• User A receives user C’s $1,300 payment and makes a $300 profit from the resale.

• User A’s $1000 collateral will be transferred to user C.

• User B remains the original Seller and is now paired with User C for settlement.

1. Settlement

• On the TGE settlement date, User B must deliver the 1,000 $IKA tokens to User C.

• If User B fails to settle, their $1,000 collateral is forfeited to User C. User C will then receive User A 1000$ collateral and user B’s 1000$ collateral, a total of $2,000.