Leverage
Leverage in Mimicry is unique, in that, players can never go into debt and there is never any need for the system to manage liquidations.
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Leverage in Mimicry is unique, in that, players can never go into debt and there is never any need for the system to manage liquidations.
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When Actors open positions with leverage L, their Mime’s position size s, will equal their deposited capital c, multiplied by their selected leverage between an integer range of 1-30.
Levered positions respond to Pantomime reference-price changes in accordance with their leverage.
For example: Let’s assume the True Odds within a hypothetical market are 1:1. A bullish Mime with a $1,000 worth of tokens, previously opened by Alice using 5x leverage, will impact the skew as if $5,000 worth of collateral was deposited on the bullish side of the market. Accordingly, a 10% change in the reference price in this hypothetical example would yield a gain of $500.
Related: and