i did the silly little mistake of opening positions before reading either the docs or watching any tutorial videos. Just click click clicked, and now i have a borrow position, and a fat levered basis trade. pls advise as to how i either can close out the trade, or if i just have to pray and hope not to get liquidated, pls let me know of that too.
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Great question!
First, assuming you did not max out your leverage to the literal highest possible value, the risk of getting liquidated is typically low (even if you’re levered 80% as much as possible), even when the market is very volatile. This is because World nets your long and short positions; each one protecting the other.
Second, when you place a levered basis trade, it executes 3 trades under the hood:
- Borrow
- Spot buy
- Short perp
That’s what you see here on the UI:
You then need to manage those 3 trades separately. You can unwind them all together using Bundle, but it’s slightly more challenging. If you have executed this trade at very high leverage, than we recommend you unwind the Borrow position first - this will produce a “Suggestion Bundle”, which will analyze your portfolio and propose a transaction to close the whole group.
You can also just close out each individual position if your leverage is lower. Or, if your leverage is high, try to unwind each leg a little bit at a time (usually starting with the smallest possible order size on the spot leg).
Video coming soon.
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