#Trading Overview

Exolane provides a streamlined trading experience for leveraged perpetual positions. This section covers everything you need to know about trading.

#How Trading Works

Trading on Exolane follows a simple flow:

text
Deposit USDC → Open Position → Manage/Monitor → Close Position → Withdraw

#Key Concepts

Concept Description
Position A leveraged long or short bet on an asset's price
Collateral USDC backing your position
Leverage Multiplier on your position (determined by size/collateral ratio)
Margin The collateral specifically allocated to a position
PnL Profit and Loss from price movements
Funding Periodic payments between longs and shorts

#Position Types

#Long Position

  • Bet: Price will increase
  • Profit: When price goes up
  • Loss: When price goes down

#Short Position

  • Bet: Price will decrease
  • Profit: When price goes down
  • Loss: When price goes up

#Trading Flow

#1. Deposit Collateral

Before trading, deposit USDC into your collateral account:

  • USDC is wrapped to the protocol's internal token (EXU)
  • Funds are held in a smart contract you control
  • Withdraw anytime (subject to open positions)

#2. Open a Position

Specify:

  • Market — Which asset (BTC, ETH, etc.)
  • Direction — Long or Short
  • Size — How much of the asset
  • Collateral — How much margin to use

#3. Position Lifecycle

Once open, your position:

  • Accrues PnL based on price movement
  • Pays or receives funding periodically
  • Can be increased or reduced
  • Can be liquidated if margin falls too low

#4. Close Position

When closing:

  • Set size to 0 to fully close
  • PnL is realized and added to collateral
  • Remaining collateral is freed for withdrawal

#One Account, Multiple Markets

With Exolane's collateral account system:

  • ✅ Deposit once, trade all markets
  • ✅ One position per market maximum
  • ✅ Collateral shared across positions
  • ✅ Add/remove margin independently

#Position Limits

Limit Value
Positions per account per market 1
Maximum leverage Up to 10x (BTC/ETH), 5x (all others)
Minimum position size Market-dependent
Minimum collateral ~$10 equivalent

#Settlement Timing

Exolane uses oracle-based settlement:

  • Trades settle on the next valid oracle update
  • Typical settlement time: a few seconds
  • Prevents front-running and manipulation
  • Order size does not move the execution price on Exolane
  • The final price can differ from the submission quote if the oracle updates while the order is pending
ℹ️

Why oracle settlement? This design prevents traders from exploiting price delays or front-running other orders.

#Trading Sections