DomFiDomination Finance

Position Management

Adjust collateral, update take-profit and stop-loss, and manage leverage on open positions.

Adding Collateral

Depositing more USDC into an open position reduces your effective leverage and pushes the liquidation price further from the current index. This is your primary defense when a trade moves against you.

When to use it: Your unrealized PnL is negative and liquidation is approaching. Instead of closing at a loss, add collateral to give the trade room to recover.

Adding collateral doesn't change your position size or entry price. It only changes effective leverage and the liquidation threshold.

EXAMPLE: Adding Collateral to Avoid Liquidation

You have a 100x long on BTCDOM with $1,000 collateral. Position size: $100,000. Liquidation margin: $100 (10% of collateral at 100x). A 0.9% adverse move would wipe you out.

You add $1,000 more collateral. Now: $2,000 total collateral, same $100,000 position, effective leverage drops to 50x. New liquidation margin: $100 (5% of $2,000). Your buffer before liquidation roughly doubles — you can now survive a ~1.9% adverse move instead of 0.9%.

COLLATERAL ADJUSTMENT CALCULATOR
Initial Collateral
$1,000
Leverage
100x
Collateral Adjustment
+$0
New Total Collateral
$1,000
Effective Leverage
100.0x
Liquidation Margin (Before)
$100
Liquidation Margin (After)
$100
Price Move to Liquidation
Before
0.90%
After
0.90%

Removing Collateral

Withdrawing USDC from a position sends it back to your wallet, but increases effective leverage and pulls the liquidation price closer.

When to use it: Your trade is in profit and you want to free up capital without fully closing. Maybe you want to redeploy that USDC into another pair or reduce protocol exposure.

EXAMPLE: Removing Collateral from a Profitable Position

You have a 50x long on ETHDOM with $2,000 collateral. Position size: $100,000. The trade is up $500 in unrealized PnL.

You remove $500 collateral. Now: $1,500 total collateral, same $100,000 position, effective leverage rises to ~67x. Your liquidation margin increases from 5% to ~6.7% of collateral. The buffer before liquidation shrinks — but you've freed $500 USDC back to your wallet while keeping full exposure.

Always check the updated liquidation price before confirming a collateral withdrawal. Removing too much from a position near breakeven can push you straight into liquidation territory.

Updating TP/SL

Take-profit and stop-loss targets can be added or modified at any time. You don't need to close and reopen a position to adjust your exit levels.

TP is capped at 900% of collateral. SL can be set at any price between your entry and your liquidation price.

Collateral Constraints

Not every collateral adjustment is allowed. The protocol enforces several guards:

Adding collateral:

  • The position's total collateral after the addition cannot exceed the protocol's max allowed collateral.
  • No oracle fee required — adding collateral executes synchronously.

Removing collateral:

  • You cannot remove your entire collateral (must leave some behind).
  • After removal, the effective leverage must not exceed the pair's max leverage (250x). The minimum remaining collateral is therefore position size / 250 × 100 in practical terms.
  • The position must not be at or below liquidation value after the simulated removal. Deeply losing positions are blocked from collateral removal.
  • Positions at the 900% profit cap cannot have collateral removed.
  • Removal is asynchronous — it queues a price request and the oracle fulfills it, just like a trade. If conditions change between your request and fulfillment (e.g., a price move pushes you into liquidation territory), the removal is rejected.
  • No pending TP/SL triggers can be active on the position during removal.

There is no absolute minimum USDC floor. The constraint is the leverage ceiling: after removal, if your effective leverage would exceed 250x, the transaction reverts.

Watch Funding

Funding accrues continuously on open positions. If you're on the crowded side, funding payments eat into your collateral over time. A position that looked safe at open can drift toward liquidation purely from funding, even without any price movement. Check your positions regularly.

Use the estimator below to project funding costs over a holding period:

FUNDING COST ESTIMATOR
Collateral
$1,000
Leverage
50x
Daily Funding Rate
0.010%
Holding Period
3 days
Position Size
$50,000
Daily Funding Cost
$5.00
Total Funding Cost
$15.00
Funding as % of Collateral
1.5%