Acta Finance
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Margin Trading
ActaFi Swap provides a safe and transparent environment for people to trade derivatives. Margin Trading will only be available for assets that are supported by decentralised oracles as liquidations are triggered through a fully decentralised price feed, making it the first truly decentralised liquidation process in the industry.
Projects that perform fundraising on the ActaFi Launchpad are obligated to set up a farming pool on Acta Finance, which offers the community an incentive for providing liquidity on ActaFi Swap.
To keep leveraged positions open, traders will be required to hold a certain percentage of the value of the position as collateral (105%). If this is not fulfilled, the position will be liquidated. With Cross Margin - any deposits, withdrawals and trades can impact your collateralization level and thus your liquidation level.
Margin requests are filled by liquidity providers (lenders) on Acta Finance. People can manually select to borrow orders on Acta Finance at the DeFi section (lending) or on ActaFi Swap directly at the best possible lending rates. By taking the margin through ActaFi Swap, there is a possibility that the duration of the lending contracts get mixed. There is a 0.45% protocol fee on margin trades, which get distributed as follows:
The debt (D) is being calculated with the open loan amount and by time duration with the lending ratio. Once a lending contract starts, it automatically calculates for the first 30min (1800s).
D= [(loan x ratio) / 86400] x t + borrowed amount
Liquidations happen by the platform when there the risk / threat hits 95%
R = D / AV
Liq price = (current asset price x R) / 0.95

Liquidation process

Liquidation events only get triggered by the Decentralised Price feed from Charli3 Oracle and automatically uses collateral in the position to buy back the borrowed asset and repay principal + interest. The remaining amount is returned to the trader, minus a 10% liquidation fee which gets distributed as follows:
  • 50% Acta Finance liquidity providers, in ACTA Tokens
  • 20% Acta Finance DAO Program
  • 30% Acta Finance development fund

Provide liquidity to Acta Finance

Having a passive investment running through a platform was never easier. Provide liquidity to Acta Finance and the platform does the work for you!
Acta Finance feeds lending orderbooks (up to 2% daily) automatically for the user and / or uses the funds to execute liquidations. 50% of the liquidation fee goes to the Acta Finance liquidity providers in a fair share based on their contribution.