1. What sorts of contracts can I trade in Shield?

While Shield aims to bring other derivative products soon, to truly provide the next generation of Decentralized derivatives infrastructure, currently you can trade only in Decentralized Perpetual Contracts

2. Will I be liable for losses in case of a negative price movement?

Shield Perpetual Options Contracts are one of a kind. Your downside potential is limited to the prepaid funding fee that is paid to keep your position open, unlike other perpetual products, where the potential for downsides are unlimited.

3.Can I withdraw my profits/funding fees?

You may choose to withdraw your profits from your funding fee at any point of time at your discretion. However, if the balance in your funding fee falls short of the required amount to keep your position open, your position will be liquidated.

4. What are Trading Fees?

Trading fees are applied to open a new position. Currently, the fee is fixed at 0.1% of the notional value of the contract.

5. Liquidation and the Maintenance Margin?

When you open a trade, you'll be paying ongoing funding fees in order to maintain the open position. As your funding balance decreases, near to point where your position may be open for one more period - it's important to remember the locked Maintenance Margin (MM) which is included in your Funding Balance.
A user can be liquidated based on the following formula: Funding Balance = Available Balance + Maintenance Margin. Liquidation occurs when Available Balance < Funding Fee. The MM is sent over to the Insurance Fund and your position is closed.
In order not to experience forced liquidated, you will need to keep in mind that the MM is included in your funding balance. When your balance minus the MM is less than your funding fee, your position will be liquidated.
Last modified 3mo ago