Trading

Gambit is a decentralised exchange that allows trading without the need for a username or password. The leverage platform uses an aggregate price feed for liquidations which allows for safer trading as large temporary price swings are not reflected in the aggregated price.

Adding a wallet

If you do not have a wallet yet, you can use MetaMask: https://metamask.io/download.html

Connecting your wallet

After you have a wallet, you can connect your wallet by pressing the "Connect Wallet" button on the Gambit Trade page: https://gambit.financial/

If you see the message below, click on "Add BSC Network" to add the Binance Smart Chain network to your wallet.

MetaMask may show a warning to "verify the network details", this appears as the page adds multiple backup nodes for a more robust trading experience.

Alternatively, you can manually add the BSC Network: https://academy.binance.com/en/articles/connecting-metamask-to-binance-smart-chain

Sending tokens

You will need to have some tokens in your BSC account in order to start trading. You can obtain BNB through Binance, Binance US or Trust Wallet. If you have tokens from other blockchains you can also use the BSC bridge.

Opening a position

Click on "Long" or "Short" depending on which side you would like to open a 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, in the below example 0.1 BNB worth 35.90 USD is being used to buy a 5x ETH (Ethereum) long position of size 178.65 USD.

The "Entry Price" is $2486.55 and the Liquidation Price is $2058.93. Below the swap box you would also see the "Exit Price", which is the price that would be 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, this is ETH in this example.

There is also a "Borrow Fee" that is deducted every 8 hours at 12 AM, 8AM and 4PM (GMT+0). This is the borrowing fee paid to the counter-party of your trade.

While there are no price impacts for trades, there can be slippage due to price movements between when your trade transaction is submitted and when it is confirmed on the blockchain. Slippage is the difference between the expected price of the trade and the execution price, this can be customised by clicking on the settings icon next to your address.

Min Profit Threshold

USDG minters act as liquidity providers and are the counter-party to traders on the platform, trades are priced based on the values provided by Chainlink. Prices can have a small delay compared to regular exchanges, to prevent bots from taking advantage of this delay, there is a minimum profit threshold of 1.5% for long and short traders.

This means that the mark price must move by more than 1.5% from the entry price for a position to be closed with a profit. Profits below this 1.5% price movement will be shown as a pending profit.

Viewing a position

After opening a trade, you would be able to view it under your Positions list, you can also click on "Edit" to deposit or remove collateral as needed.

The amount of profit and loss you make will be proportional to your position size. In this example, we have used 35.90 USD to buy 178.75 USD of ETH. If the price of ETH increases by 10%, we would make a profit of 17.875 USD, if the price of ETH decreases by 10%, we would make a loss of 17.875 USD.

If we had opened a short position instead, then if the price of ETH decreased by 10% we would make a profit of 17.875 USD, if the price of ETH increased by 10%, we would make a loss of 17.875 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), you can customise this by clicking on the settings button next to your address.

Liquidations

In the example, since we have only used 35.90 USD worth of tokens as collateral to open the position, there will be a price at which the loss amount is very close to the collateral amount, this is the Liquidation Price and is calculated as the price at which the position size / (collateral - loss amount) is more than 50. If the token's price crosses this point then your position will be automatically closed.

Closing a position

You can close a position partially or completely by clicking on the "Close" button.

For long positions, profits are paid in the asset you are longing, e.g. if you long ETH you would get your profits as ETH.

For short positions, profits are paid in the stablecoin that you select when opening the position, the available stablecoins to choose from are BUSD, USDC, USDT. You can choose between these by clicking on the "Profits In" selector.

Pricing

There is no price impact for trades on Gambit, so you can execute large trades exactly at the mark price. Since the protocol serves as the counter-party, there is a small spread for entering and exiting trades.

The mark prices are displayed next to the market name, long positions will be opened at the higher price and closed at the lower price while short positions will be opened at the lower price and closed at the higher price.

The chart will indicate the average of the two mark prices.