๐Ÿ“–Case study

A case study of how exit position works in real life

  1. Initial Trade โ€“ 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 โ€“ User A โ†’ User C

  • Before TGE, market conditions improve and $IKAโ€™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 Cโ€™s $1,300 payment and makes a $300 profit from the resale.

  • User Aโ€™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 Bโ€™s 1000$ collateral, a total of $2,000.

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