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Trading on Zohal

Zohal is a decentralized exchange offering secure and streamlined trading without requiring accounts. It uses aggregated exchange price feeds to reduce risks of liquidations due to temporary price wicks.

Getting Started​

Selecting a Trading Option​

Begin on the Trade page by choosing your preferred trading option (Long, Short, or Swap).

Adding and Connecting Your Wallet​

  1. If you don’t have a wallet, install Braavos or Argent.
  2. Connect your wallet by clicking Connect Wallet on the Trade page.

Tokens and Swaps​

Sending Tokens​

Ensure you have USDC in your wallet for trading. Use the integrated Swap functionality powered by AVNU SDK to exchange tokens directly within the platform.

Performing Swaps​

  1. Navigate to the Swap tab.
  2. Select tokens to exchange.
  3. Confirm the swap.

Leverage Trading​

Opening a Position​

  1. Choose Long or Short based on your market expectations:
    • Long: Profits from rising prices.
    • Short: Profits from falling prices.
  2. Enter the trade amount and select leverage.

Managing Positions​

  • View Positions: Monitor active trades in the Positions list.
  • Edit Collateral: Deposit or withdraw collateral to adjust leverage and liquidation prices.

Closing a Position​

Partially or fully close positions via the Limit/Market Decrease button. Profits or losses are realized proportionally:

  • Long Positions: Profits are paid in USDC.
  • Short Positions: Profits are paid in USDC.

Advanced Trading Features​

Limit Orders​

Set limit orders to execute trades at specific price levels. Manage these orders under the Limit tab.

Take-Profit and Stop-Loss​

Automate profit-taking and loss limits via TP/SL orders. Cancel or edit orders manually as needed.

Fees and Pricing​

Trading Fees​

  • Open/Close Positions: 0.04%–0.06% of position size.
  • Liquidation Fees: 0.2%–0.3%, depending on market type.

Price Impact​

Trades affect pool balances, leading to price impact:

  • Positive Impact: Favorable entry/exit price.
  • Negative Impact: Less favorable price.

Funding Fees​

Funding rates balance long/short open interest.

Liquidations​

Liquidation occurs if losses approach collateral value. Fees vary by market:

  • Synthetic Markets: 0.3%

Risk Management

Trading on decentralized exchanges involves risks, including:

  • Smart Contract Vulnerabilities: Possible bugs or exploits.
  • Liquidation Risks: Loss of collateral due to adverse price movements.
  • Depegging Risks: Stablecoins may lose their peg to 1 USD.

Users are advised to exercise caution and conduct their due diligence.

Arbitrage Opportunities

Leverage pool imbalances and funding fee disparities for arbitrage gains:

  • Perps: Open delta-neutral positions to profit from funding fee adjustments.

Pool stats and funding rates are accessible via the Dashboard page.