On portfolio margin, would it be possible to fix the liquidation price more closely to reality when a user is long only one asset with the same asset as collateral? Eg I relonged HYPE since 74 (🤣) and originally, my liq was around 30, but as price fell (and value of my HYPE collateral fell) it ended up rising to 43ish. Just seems like it would be be better to list the actual liq price at the outset where it is easy to calculate (eg a long with same asset as collateral)
On portfolio margin, would it be possible to fix the liquidation price more closely to reality when a user is long only one asset with the same asset as collateral? Eg I relonged HYPE since 74 (🤣) and originally, my liq was around 30, but as price fell (and value of my HYPE collateral fell) it ended up rising to 43ish. Just seems like it would be be better to list the actual liq price at the outset where it is easy to calculate (eg a long with same asset as collateral)
(pressed enter too early)
it fully makes sense that your liquidation price increases, and i have a feeling you understand that too - maybe you mean to calculate the liq price after considering collateral price decreases.
sounds possible for one asset collateral long/short the same, but requires a different formula than usual, and can't take interest into account, and definitely impossible for more than one asset collateral/position types
i tried to wrok out the details but got a bit lazy/confused at the details
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your collateral is originally $100, and you perp long another $100 with it, utilising lets the maximum borrowable (50% of $100, so $50) as margin (so levered 2x).
in total, you are long $200 worth with $100 backing it at a 50% LTV - effectively you are leveraged 2x.
the price drops 10%, your collateral is now $90, your max borrowable has decreased to $45, and your perp long is now worth $90, margin has decreased from $50 to $40, perp pnl has decreased from $0 to -$10.
in total you suffer -$20 in pnl
in total, you are long $180 worth with $80 backing it at a 50% LTV, but the perp long position has increased leverage
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(pressed enter too early)
it fully makes sense that your liquidation price increases, and i have a feeling you understand that too - maybe you mean to calculate the liq price after considering collateral price decreases.
sounds possible for one asset collateral long/short the same, but requires a different formula than usual, and can't take interest into account, and definitely impossible for more than one asset collateral/position types
i tried to wrok out the details but got a bit lazy/confused at the details
~~
your collateral is originally $100, and you perp long another $100 with it, utilising lets the maximum borrowable (50% of $100, so $50) as margin (so levered 2x).
in total, you are long $200 worth with $100 backing it at a 50% LTV - effectively you are leveraged 2x.
the price drops 10%, your collateral is now $90, your max borrowable has decreased to $45, and your perp long is now worth $90, margin has decreased from $50 to $40, perp pnl has decreased from $0 to -$10.
in total you suffer -$20 in pnl
in total, you are long $180 worth with $80 backing it at a 50% LTV, but the perp long position has increased leverage
~~
Yes, exactly. Obviously, your liq price will change as your collat value goes down. It just seems possible to know (and reflect) that at the outset if you are only opening one position on the same asset you’re using for margin. Would obv change as soon as another position on another asset was opened. Think it’s possible, but might be over complicating it for a fairly marginal (excuse the pun) benefit!
Yes, exactly. Obviously, your liq price will change as your collat value goes down. It just seems possible to know (and reflect) that at the outset if you are only opening one position on the same asset you’re using for margin. Would obv change as soon as another position on another asset was opened. Think it’s possible, but might be over complicating it for a fairly marginal (excuse the pun) benefit!