DeFi Wallet - Perpetuals
Support Specialist avatar
Written by Support Specialist
Updated over a week ago

Does the DeFi Wallet own the Perpetuals order book?

The Perpetuals feature in the DeFi Wallet is currently powered by Fulcrom. For more details about the order book, please visit this page.

Who is the counterparty to my Perpetuals trade?

Fulcrom powers the DeFi Wallet’s Perpetuals feature. Please visit this page for more information about your trades’ counterparty.

Why is my transaction taking so long?

The duration of your transaction is dependent on on-chain activities. As such, it might be delayed when the network is congested.

How many positions can I open in a single time period?

Every DeFi Wallet user can open one long and two short positions for every token pair.

E.g., I can have one long position and two short positions for BTC/USD.

Why do I already have a position in Perpetuals?

You might see that you already have a position if you’ve opened one on Fulcrom before. Positions are shared across both platforms since Perpetuals in the DeFi Wallet is powered by Fulcrom.

How do I make a trade in Perpetuals?

  1. Choose your preferred token pair

  2. Choose your preferred wager token

  3. Input your transaction amount

  4. Select your preferred leverage

  5. Tap Confirm

  6. Your transactions will then be ‘Pending’. Once they’re submitted successfully, you will be redirected to the ‘Positions’ page, which showcases your opened position.

  7. You may also check your position via the grey My Trades button.

What tokens do I receive when I close my trade?

The tokens you receive will be dependent on the position type you take on. For long positions, the tokens you receive will be the underlying token pair that you have selected for the position. For example, should you choose to open a long position on BTC/USD, you will receive BTC when you close your trade. For short positions, the tokens you receive will be dependent on the “Collateral” value you chose when you opened a position. For example, if you open a trade for BTC/USD with USDC as the “Collateral”, you will receive USDC as the corresponding payout token.

Why is my transaction cancelled?

Your transaction might be cancelled for various reasons. This includes:

  1. Broadcast failure

  2. On-chain failure

  3. Fulcrom cancelled your transaction due to a circuit breaker

  4. Fulcrom cancelled your transaction due to liquidity issues

You can check your transaction history in the grey My Trades button.

How is the liquidation price calculated?

The liquidation engine of Perpetuals is powered by Fulcrom. For more details, please visit this page.

What is leverage?

Leverage is a tool that allows traders to control a large position in a financial market with a relatively small amount of capital. It amplifies both potential gains and losses. In simpler terms, it's like borrowing money to increase the size of a trade beyond what would otherwise be possible with your own funds.

How does leverage work?

Leverage works by allowing traders to borrow funds from their broker to open larger positions in the market. For example, with a leverage of 1:100, a trader can control a position worth $100 for every $1 of their own capital.

What are the benefits of leverage?

Leverage can amplify profits from successful trades, potentially leading to higher returns. It also enables traders with limited capital to participate in larger market movements.

What are the risks of leverage?

While leverage can magnify profits, it also magnifies losses. Traders can incur significant losses, sometimes exceeding their initial investment. It's essential to use leverage cautiously and manage your risk effectively.

What is a lot size?

Lot size refers to the standardised quantity of a financial instrument that is traded in a single transaction.

What are the fees included in a single transaction?

Please refer to Fulcrom’s fee structure here. The DeFi Wallet also charges a convenience fee of 0.1% of your position size for every closing/opening of a position.

What does ‘bust price’ refer to?

This refers to the liquidation price. It is the price level at which a trader's position will be automatically closed by Fulcrom to prevent further losses.

How is PnL calculated during liquidation?

This will depend on your liquidation type. Since Perpetuals is powered by Fulcrom, your position may be liquidated if it hits either of these liquidation prices:

  1. Full liquidation: This means your entire position has been lost, and your PnL should be close to your original collateral size, discounting fees.

  2. Partial liquidation: For partial liquidation, your entire position will also be closed. However, the realised PnL will only be a part of your entire position.

For detailed calculations, please refer to this page.

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