Long and short positions

Windup's leveraged positions borrow actual assets and trade them through the spot pool. They have no fixed expiry. Borrowing interest accrues while the position is open.

The maximum leverage is 10×. Available liquidity and risk limits can make the executable size smaller than the amount you enter.

Going long#

A long gains exposure to a rising token price.

You post USDC margin. The market borrows additional USDC from its lending vault and uses the combined amount to buy tokens. The market holds those tokens as collateral for the position.

For a long:

Entry exposure = posted margin + borrowed USDC
Entry leverage = entry exposure / posted margin
Borrowed USDC cannot exceed 9 × posted margin

When you close, the market sells the collateral tokens, repays the loan and interest, deducts the closing fee, and credits any remaining USDC to your payout balance.

Going short#

A short gains exposure to a falling token price.

You post USDC margin. The market borrows tokens and sells them into the pool. Your margin and the sale proceeds stay in the market as USDC collateral.

When you close, the market buys back the owed token quantity and repays the token lending vault. After interest and fees, any remaining USDC becomes your payout.

The leverage limit uses the fair value of the borrowed tokens, not just the amount received from selling them. A short can be liquidated if the token price rises far enough to leave insufficient equity.

Opening a position#

To open a position:

1. Open a graduated token and select Long / Short.
2. Choose the direction, enter your USDC margin and select leverage.
3. Review the position size, opening fee, borrowing rate and total amount to open.
4. Approve the required USDC spend and sign the transaction.
5. Check the position under Positions or Portfolio after confirmation.

The contract requires at least 1 USDC of margin. Each token market supports at most 64 active positions at a time.

An opening fee is paid in addition to margin. Posting 100 USDC of margin requires 105 USDC before gas. The full 100 USDC is the margin basis; the extra 5 USDC is the fee.

Adding margin#

The contract lets the position owner add USDC margin. Adding margin does not buy a new leveraged position. It increases the collateral supporting the existing one.

A top-up charges 5% on the added amount and increases the margin basis used for the closing fee. Adding 20 USDC of margin therefore requires 21 USDC before gas.

Closing a position#

Use Close on your position. The contract executes an actual sale or token buyback and records the resulting payout. Use Collect payout to transfer that funded balance to your wallet.

A displayed profit is an estimate. The final amount depends on executable pool prices, interest, fees and the transaction's limits.

A normal close must repay principal and borrowing interest. A position that cannot repay them may need liquidation instead. A stale mark does not by itself prevent an owner close, but other execution and repayment checks still apply.