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.
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 loan through ActaFi Swap, there is a possibility that the lending contracts have mixed duration. There is a 0.25% margin trade fee for the platform on each margin trade.
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 the risk / threat hits 95% R = D / AV
- Liq. price = (current asset price x R) / 0.95
Liquidation events only get triggered by the Decentralised Price feed from Charli3 Oracle and automatically use 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
- Up to 20% Acta Finance DAO Program*
- 30% Acta Finance development fund
*The allocation of DAO, levels that are not filled get reallocated automatically to the incentives pool.
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.