Overview

Trading and settlement

Opening and closing a position

Choose a market and a direction, then enter your margin and leverage. Notional size is margin × leverage. A long position gains from a rising price; a short position gains from a falling price. Both positions are recorded in the trading contract and face the House LP as counterparty.

$10Minimum margin. No minimum notional.

IsolatedMargin cannot be added or removed; a position closes in full.

2 sourcesMargin comes from your available balance or from profit waiting in the settlement queue.

25Positions can be closed with one signature.

There are no opening fees, closing fees or funding fees. Profit settlement has its own deductions, explained below.

The position panel shows each position's current holding-time weight. For a losing position it shows how many TACO closing now would mint; for a winning position it shows the net amount you would receive.

What happens when I win?

Winning trades settle in three steps:

Step 1A small price buffer is appliedThe closing price moves slightly against your position before profit is calculated.

Step 2An asymmetric deduction is appliedYou retain a portion of the resulting profit. Under the BTC parameters, smaller price movements retain a smaller portion.

Step 3A 2% profit fee is chargedOn the remaining profit.

The price buffer and profit-retention settings are market-specific. For BTC, the buffer is 0.2 basis points, or 0.002%. The full formula is in Technical details.

Example · $100 margin, 200× leverage, BTC long, price up 0.5%

Before settlement deductions

$100.00After the price buffer

$99.60After the asymmetric deduction

$86.36After the 2% profit fee

$84.63

This example uses the BTC parameters.

If LP liquidity is sufficient, the contract settles profit immediately. Otherwise, the unpaid portion joins the settlement queue.

What happens when I lose?

The contract accounts for your trading loss as LP inflow. There is no additional loss charge on top of that amount.

A 2% loss fee is taken from the loss received by the LP when the fee-collection conditions are met. The remaining amount forms the minting base for TACO. Minting also depends on the current rate and your holding time.

Example · $1,000 loss with an empty settlement queue

$1,000realized loss

− $202% loss fee

$980minting base

× 100 × 1.0mint rate × time weight

98,000 TACOminted to you

Closing or liquidating a position shortly after opening reduces the number of tokens minted. Liquidations do not bypass this time adjustment.