Amplify and Margin Trade

To cater to the needs of traders, Fringe v2 introduced two leveraged trading facilities:

• Fringe Amplify: Fringe Amplify is a leveraged trading facility to allow traders to gain leveraged long exposure to an asset in relation to its USD price.

• Fringe Margin Trade: Fringe Margin Trade is a leveraged trading facility to allow traders to gain leveraged exposure to an asset pair.

Margin Trade

Fringe Margin Trade is a leveraged trading facility to allow traders to gain leveraged exposure to an asset pair.

Margin Trade will provide users with the flexibility to choose their own pair of assets to trade against, rather than just trading against the US dollar. This will allow traders to select the base or “quote” asset of their choice, expanding the range of available trading options.

A trader selects a pair of assets, one to ‘go long’ and the other to ‘go short’. The trader also specifies their desired exposure to the asset pair. Fringe Margin Trade will specify the margin the trader needs to deposit for the trading position.

While the position is open, interest is charged on the exposure amount.

If the trading position falls into a liquidatable state, liquidators will partially liquidate the position to bring it back into a healthy state. The trader’s position will still be maintained, though now partially liquidated.

The user experience for Margin Trade differs slightly from that of Amplify (see below), as users can select the assets they want to trade and adjust the parameters of the trade, including the degree of exposure they wish to gain. This is a crucial addition to the Fringe ecosystem, as it will attract traders looking to maximize their returns in the assets they’re most interested in without using centralized platforms, expanding Fringe’s user base.

Amplify

Fringe Amplify, on the other hand, is a leveraged trading facility to allow traders to gain leveraged long exposure to an asset in relation to its USD price.

Amplify will allow users to magnify their exposure to a specific asset by taking a leveraged long position. This means that anyone can put down a deposit and receive amplified exposure to the asset they choose to trade, in this case, in relation to its US dollar value.

A trader selects an asset, then specifies a margin amount and a multiplier. Fringe Amplify then creates a leveraged trading position of the selected asset to the value of the margin amount times the multiplier.

While the position is open, interest is charged on the margin amount times the multiplier.

If the trading position falls into a liquidatable state, liquidators will partially liquidate the position to bring it back into a healthy state. The trader’s position will still be maintained, though now partially liquidated.

With the use of loan-to-value ratios, traders can potentially multiply their exposure and amplify any gains resulting from the market moving in their favor.

However, it’s important to note that traders should be aware of the added exposure if the market moves against their position and understand the risks associated with taking leveraged positions.

Both features will offer robust security measures to protect users’ assets and provide a seamless trading experience.