✔️ Manage Short Positions
Users can manage their short positions' collateralization ratio and debt in order to mitigate liquidation risk and losses.
Users can manage their short positions through three different mechanisms. Each mechanism provides a unique for users to adjust their positions according to their strategies.
- 1.Closing a position. Closing a short position refers to paying back the moAsset debt entered by short-selling in order to redeem your initial collateral. Users can close their positions by pressing the close position button located on the table under the "shorting" feature. Users also have the option of selecting a portion of the amount to close on the pop-up window.
2. Adjust your Collaterallization ratio. Users can modify their collateralization ratios in two ways. i. Increase staked collateral. Users can stake more collateral to increase their collateralization ratio and mitigate their liquidation risk. ii. Reduce staked collateral. Users can unstake part of their collateral, this will result in the reduction of their collateralization ratio. This is used mainly to maximize their capital efficiency and take profits.
To adjust your collateral ratio, click on the "edit" button:
3. Adjust your Position (debt). Users can adjust their position (debt) without requiring withdrawing the staked collateral. i. Increase your Short position. Users can maximize the capital efficiency of their collateral by increasing their short position total size. This will employ the available collateral to short the selected moAsset, by increasing the short position, users will generate a new "Open Price" base on an average between the new and previous short positions.
ii. Reduce your short position. Users can increase their collateral ratio by staking more collateral without adding more shorts. This feature allows users to manage their liquidation risks.
To adjust your position (debt), click on the "edit" button: