Trading
FSX is a decentralized exchange allowing trading without the need for a username or password. The platform uses a price feed based on an aggregate of exchanges which reduces the risk of liquidations from temporary wicks.
Adding a Wallet
If you do not have a wallet yet, you can use Metamask.
Connecting your Wallet
After you have a wallet, you can connect your wallet by pressing the "Connect Wallet" button on the Trade page.
If you see the message: "Your wallet is not connected to Mantle", click on "Add Mantle" to add the Mantle network to your wallet.
Alternatively, you can manually add the network
RPC URLs
Since FusionX is a decentralized exchange, querying of data and submitting of transactions is done through an RPC URL.
There may be times when the RPC URL is not as responsive as it should be, during these times you may notice data being slow to load or not loading on your page. It is also possible to hit the rate limit with the public Mantle RPC URL (https://rpc.mantle.xyz) which would result in 429 errors.
To continue using the exchange during these times you can use a backup URL or switch the RPC URL in the network settings of your wallet and the page should load faster after.
A list of RPC URLs and their statuses can be found on Chainlist.
Sending Tokens
You will need to have MNT in your Mantle account to start trading. You can get MNT, USDT, USDC or DAI Faucet for Mantle Testnet from the following link. https://fusionx.finance/faucet
Swaps
FusionX supports both swaps and leverage trading. For swaps, click on the "Swap" tab on the Trade page, this will open the interface to swap tokens.
For leverage trading, please see the below sections for more information.
Opening a Position
Click on "Long" or "Short" on the Trade page depending on which side you would like to open a leverage position on.
Long position:
Earns a profit if the token's price goes up
Makes a loss if the token's price goes down
Short position:
Earns a profit if the token's price goes down
Makes a loss if the token's price goes up
After selecting your side, key in the amount you want to pay and the leverage you want to use.
Below the swap box you would see the "Exit Price", which is the price that is used to calculate profits if you open and then immediately close a position. The exit price will change with the price of the token you are longing or shorting.
Selecting a Market
You can select a market by changing the token that you'd like to Long or Short.
Selecting a Pool
Multiple pools may be available for your selected market, for example, there may be an MNT-USDC and MNT-USDT pool. You can select which pool you'd like to trade in depending on which collateral you prefer to be backing your positions.
Selecting a Collateral
Multiple types of collateral may be available for your selected market, for example, in the MNT-USDC market, you can choose whether your position's collateral is stored as MNTor USDC.
Examples of how this could be used:
Long MNT with MNT as collateral: You would have be long MNT from your long position as well as from your MNT collateral. It is possible to e.g. open a 0.1 MNT long position for a small amount of MNT while using 1 MNT as collateral for a total of 1.1 MNT exposure.
Long MNT with USDC as collateral: You would be long MNT only from your long position. This could be useful if switching frequently between longing and shorting.
Short MNT with MNT as collateral: This could be useful for delta neutral strategies to earn funding fees. For example, if funding is such that longs pay shorts, then a 1 MNT short position could be opened with 1 MNT as collateral.
Short MNT with USDC as collateral: This could be useful if switching frequently between longing and shorting.
Note that if opening a long position with a non-stablecoin as collateral, your liquidation price may change as the price of your collateral changes.
Limit Orders
Limit orders can be created by selecting the "Limit" option after selecting whether you would like to open a long or short.
After creating a limit order, it will appear in under the "Orders" tab, you can edit the order and change the trigger price if needed.
Note that limit orders are not guaranteed to execute, this can occur in a few situations including but not exclusive to:
The mark price which is an aggregate of exchange prices did not reach the specified price
The mark price was reached but there may not be sufficient liquidity to execute the order
The mark price was reached but executing the order would result in a position which exceeds the current max leverage
Managing Positions
After opening a trade, you would be able to view it under your Positions list, you can also click on "Edit" to deposit or withdraw collateral, this allows you to manage your leverage and liquidation price.
Closing a Position
You can close a position partially or completely by clicking on the "Close" button in the position row. Closing a position will realise pending profits / losses proportional to the percentage of the position that is closed.
For long positions, profits are paid in the asset you are longing, e.g. if you long MNT your profits will be in MNT.
For short positions, profits will be paid out in the same stablecoin that you used to open the position, e.g. USDC or USDT.
You can customize the token to be received by changing the "Receive" token in the "Close Position" menu. Note that this may perform a swap from your profit token to the token you select if needed, the swap fees will be shown in the "Close Position" menu.
The amount of profit and loss for a position, excluding changes in your collateral's value, will be proportional to your position size. For example, if you open a long MNT position of size 10,000 USD and if the price of MNT increases by 10%, the position would have a profit of 1000 USD, if the price of MNT decreases by 10%, the position would have a loss of 1000 USD.
If a short position was opened instead, then if the price of MNT decreased by 10% the position would have a profit of 1000 USD, if the price of MNT increased by 10%, the position would have a loss of 1000 USD.
Leverage for a position is displayed as (position size) / (position collateral). If you'd like to display the leverage as (position size + PnL) / (position collateral) instead, you can customise this in the "Settings" menu by clicking on the "..." icon at the top right of the page.
Stop-Loss / Take-Profit Orders
You can set stop-loss and take-profit orders by clicking on the "..." button in the position row and selecting the "Trigger Close" option.
After creating a trigger order, it will appear in your position's row as well as under the "Orders" tab, you can edit the order and change the trigger price if needed.
If you close a position manually, the associated trigger orders will remain open, you would need to cancel them manually if you do not want the order to be active when opening future positions.
Note that orders are not guaranteed to execute, this can occur in a few situations including but not exclusive to:
The mark price which is an aggregate of exchange prices did not reach the specified price
Additionally, trigger orders are market orders and are not guaranteed to execute at the trigger price.
Liquidations
If an MNT long position is opened and the position size is larger than the collateral value, then there would be a price at which the position's loss amount is very close to the collateral value.
This is referred to as the Liquidation Price and is calculated as the price at which the (collateral - losses - fees) is less than 1% of your position's size. If the token's price crosses this point then the position will be automatically closed.
Due to borrowing and funding fees your liquidation price will change over time, especially if you use a leverage that is more than 10x and have the position open for more than a few days, so it is important to monitor your liquidation price.
Collateral can be deposited using the "Edit" button in the position row, this will help to improve the liquidation price and reduce the risk of liquidation.
When a position is liquidated, any collateral remaining after deducting losses and fees will be returned to your account.
Fees and Rebates
Open / Close Fees
The trading fee to open a position is 0.05% or 0.07% of the position size, similarly, there is a 0.05% or 0.07% fee when closing the position. This applies to increasing the position size of an existing position and partially decreasing a position size as well.
If the trade increases the balance of longs and shorts then the fee would be 0.05%, otherwise the fee would be 0.07%.
Swap Fees
The fees for a normal swap are 0.05% or 0.07% of the swap amount.
If the trade increases the balance of tokens in the pool then the fee would be 0.05%, otherwise the fee would be 0.07%.
The fees for stablecoin swaps are 0.005% and 0.02% of the swap amount.
If the trade increases the balance of tokens in the stablecoin pool then the fee would be 0.005%, otherwise the fee would be 0.02%.
Price Impact
There may be a positive or negative price impact for increasing / decreasing positions and for swaps.
If the trade improves the long / short balance or tokens in the pool then there would be a positive price impact, otherwise there would be a negative price impact.
For increasing / decreasing positions, a positive price impact would result in an entry / exit price that is more favourable for your position, e.g. if opening a long position with a positive price impact, the position's entry price would be lower. A negative price impact would result in a entry / exit price that is less favourable, e.g. if opening a long position with a negative price impact, the position's entry price would be higher.
For swaps, a positive price impact would increase the amount of tokens received while a negative price impact would decrease the amount of tokens received.
The price impact values can be viewed on the interface when making a trade.
Funding Fees
There may be positive or negative funding fees while a position is open. If there are more longs than shorts then longs would pay a funding fee to shorts, if there are more shorts than longs then shorts would pay a funding fee to longs.
The funding fee rate can be viewed on the interface when making a trade. Note that the rate will change over time based on the balance of longs and shorts.
If you receive positive funding fees for your position, these fees can be claimed by using the "Claim" button in the "Claimable Funding" box on the Trade page.
Borrowing Fees
To avoid a scenario where liquidity is fully reserved by a user opening equal long and short positions for a small cost, there is a borrowing fee for open positions. If there are more longs than shorts then longs would pay the borrowing fee, if there are more shorts than longs then shorts would pay the borrowing fee. This borrowing fee also helps to incentivise more liquidity to be added in the event that all liquidity is reserved for positions.
The borrowing fee rate can be viewed on the interface when making a trade. Note that the rate will change over time based on the pool utilization percentage.
Execution Fee
There are two transactions involved in opening / closing a position:
User sends the first transaction to request open / close / deposit collateral / withdraw collateral
Keepers observe the blockchain for these requests then execute them
The cost of the second transaction is displayed in the confirmation box as the "Max Execution Fee". This network cost is paid to the blockchain network when the order is executed. This cost is overestimated to handle potential increases in gas price, when the order is executed, any excess execution fee is sent back to your account.
Trading Risks
Caution should be exercised when interacting with any smart contract or blockchain application. While risks are attempted to be mitigated through testing, audits and bug bounties, there is always a risk of vulnerabilities in smart contract code.
A non-exhaustive list of risks:
Smart contract risks
Liquidations
ADLs
Additionally, collateral and profits may be backed by bridged or pegged tokens which may not be guaranteed to maintain peg.
Stablecoin Pricing
In case the price of a stablecoin depegs from 1 USD:
To ensure that profits for all short positions can always be fully paid out, the contracts will pay out profits in the stablecoin based on a price of 1 USD or the current Chainlink price for the stablecoin, whichever is higher.
For swaps using the depegged stablecoin, a spread from 1 USD to the Chainlink price of the stablecoin will apply.
Arbitraging
If pools are imbalanced for swaps or perps, arbitraging can be done to gain a profit while helping to balance the pools.
Swaps
For swaps, positive price impact can be arbitraged.
For example, in the MNT-USDC pool, if the USD value of MNT in the pool is more than the USD value of USDC in the pool, then there would be a positive price impact to swap USDC for MNT. This positive price impact would result in additional MNT being received for a USDC to MNT swap.
Perps
For perps, positive price impact and funding fees can be arbitraged.
For example, if there are more MNT long positions than short positions then there would be a positive price impact to open MNT short positions, this would result in a better entry price than the current market price. The position would also earn funding fees while it remains open.
If in the same scenario, the MNT long positions close such that there are more shorts than longs, then there would be a positive price impact to close the long position, this would result in a better exit price than the current market price.
For markets where the index token is the same as the collateral token, e.g. using MNT collateral in the MNT perp market, delta-neutral positions can be opened by using the collateral token to open a short position. Conversely, when arbitraging with long positions, a 1x long position can be opened using a stablecoin as collateral, this would lead to 1x exposure to the index token.
Note that funding will tend towards zero as the long / shorts become balanced, this should be considered when deciding on the position size to open for arbitrage.
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