📖Case study
A case study of how exit position works in real life
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.
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.
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.
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.
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