▶ Introduction
Wootrade is an alternative trading system incubated by Kronos Research, including a liquidity pool aggregated from digital asset exchanges. Liquidity is also supported by market-making strategies from Kronos Research. Currently, our products have already upgraded to phase 2.0 of development with both system stability and scalability significantly improved. Click this link to check the tokens supported by Wootrade and view the real-time order books: https://x.woo.org/markets/.
▶ Account and API
1. Account Registration and Verification
Please register an account with your email address and reach out to your account manager to upgrade your account to VIP. After the upgrade, you can log in and use your account.
2. API Documents: https://docs.woo.org/#introduction
- Restful- https://docs.woo.org/#restful-api
- Websocket- https://docs.woo.org/#websocket-api-v2
3.Testnet and Production
Wootrade provides a Testnet environment for testing. You can connect to the production environment after you complete testing.
- Testnet
RESTful API: https://api.staging.woo.org/
WebSocket API: wss://api.staging.woo.org/ws/ - Production
RESTful API: https://api.woo.org/
WebSocket API: wss://api.woo.org/ws/
▶ User Interface
1. Account Info
Under Account, Account Info tab displays the basic information of your account, including balance, trading fees, margin ratio, interest rate.
2. Wallet
The Wallet tab is used for deposit and withdrawal settlement, balance inquiry, and interest settlement.
3. Orders
The Orders tab displays details about previous or current orders and trades.
4. API management
API management tab is used to create API and manage API-related permissions.
▶ Margin Trading
1. Balance and deposit/withdrawal
You can deposit cryptocurrency as collateral before margin trading begins, like USDT, BTC, ETH. Wootrade defines the collateral ratio for each token, which represents the equivalent USDT value as your equity. The collateral ratio of USDT is 1. (Collateral ratio for all tokens)
Account assets will be displayed in the Wallet section of the account. A positive balance indicates that the account has a surplus of that asset, and a negative balance indicates that the account borrows that asset.
All withdrawal requests will be manually verified and processed chronologically by the Wootrade team. Please wait patiently. The following scenarios could extend the processing time:
- Withdrawing large amounts of assets: Wootrade needs to transfer from the cold wallet, and the operation time is 16:00 and 24:00 daily(UTC +8). The withdrawals will be processed chronologically after the transfer.
- Withdrawing to a new address: For security reasons, withdrawing to a new address requires confirming your address with the Wootrade team. The withdrawals will be processed chronologically after the confirmation.
2. Leverage
By default, most deposited assets can be used as margin with discounts to conduct leverage trading on Wootrade. The initial leverage is 1x, you can select up to 3x leverage. Note that the available max leverage will change according to the collateral ratios of each token and your position size.
3. Equity and Exposure
Equity basically represents the total value of all your assets with discounts. Exposure is the sum of total opened positions and pending orders, and excludes USDT. The detailed formula defines below:
- Equity = SUM ((Balance.i - Interest.i)* Market price.i*discount.i), including all currencies. USDT price is always 1, and the collateral ratio of any negative tokens is 1.
- Exposure = SUM (ABS (Balance.i * Market price.i) + SUM (ABS (pending orders.ij) * Open price), including all currencies with exclusion of USDT.
For instance, you have 1 BTC (40,000 USDT and collateral ratio is 0.9) and 10,000 USDT (collateral ratio is 1) and select the maximum of 3x leverage. If you short 10 ETH at $3,000, which is a total of $30,000, then your USDT becomes 40,000. Your equity is 1 BTC * 40,000 * 0.9 + 40,000 USDT * 1 * 1 - 10 ETH * 3000 = 46,000 USDT; your exposure is 1 BTC * 40,000 + abs(-10) * 30,000 = 70,000 USDT.
4. Margin ratio
The margin ratio defines your risk level of equity relating to exposure. A higher margin ratio will lead to a lower risk level.
- Margin ratio = (Equity / Exposure) * 100%
- Margin usage rate = 100% / (Margin ratio * Maximum leverage)
- Buying power = Equity * (1 - Margin usage rate) * Maximum leverage
Let’s take the previous instance, margin ratio is (46,000 / 70,000) * 100% = 65.7%. The Margin usage rate = 100% / (65.7% * 3) = 0.3, then buying power is 46,000 * (1 - 0.3) * 3 = 96,600.
5. Interest
With margin trading, any negative balances will start accruing interest hourly and will continue accruing interest until the balance returns to zero or positive. Interest owed is based on the maximum amount borrowed in each hourly period. The interest calculation is based on the following formula:
- Interest on the hour = Max (Borrowed assets on the hour) * Interest rate on the hour
You need to repay in the same coin as what you borrowed. You can choose to manually repay interest under the Wallet tab or pay interest and borrowed funds at the same time by closing the position. Every 24 hours, the system will automatically repay the accrued interest by default. If the user does not have enough balance of the borrowed token to repay the interest, the system will convert the balance of the token with the highest balance to repay the outstanding interest owed.
For instance, you borrow 100 and 500 USDT to long BTC respectively at 15:02 and 15:20, the interest starts calculating at 15:02 with your -100 USDT. Your total USDT becomes -600 at 15:20. If you close all BTC positions, your USDT returns to positive, then the interest is calculated based on the maximum borrowed USDT on the hour, which is 600 USDT. If you close your BTC positions at 16:00, the interest will accrue 2 times with 600 USDT as base. Daily interest is the total 24 times of interest accrued per hour.
The interest rate of each token adjusts every hour based on overall supply and demand. You can query the real-time interest rate under the Account info tab or via API.
6. Margin calls and Liquidation
- The default margin ratio sets as 1,000%, indicating you haven’t opened any position. The more exposures you open, the lower your margin ratio is.
- Initial Margin Ratio: If margin ratio drops to hit Initial Margin ratio, which is equal to 100% divided by your maximum leverage, indicating you have used up all your funds. You can not open more positions or withdraw while restricted but can close positions and deposit assets to raise your margin ratio.
- Maintenance Margin Ratio: If your margin ratio falls below your Maintenance Margin ratio, which is 10%, your account will trigger liquidation and the liquidation engine will take over the account. To significantly save your positions from liquidation, Wootrade utilizes a three-step liquidation process:
- The system will cancel your pending orders carefully to minimize impact. If canceling pending orders causes its margin ratio to increase back above or equal to 10%, the liquidation ends.
- If the margin ratio is still below the maintenance margin ratio, the liquidation engine will aim to close down 50% of the current position of the account with IOC (Immediate Or Cancel) orders. If partial liquidation causes its margin ratio to rise above 10%, the liquidation engine retreats.
- If the margin ratio drops below 10% again within one hour, the account will begin to fully close down against the liquidation engine. The liquidation engine will try to close down all positions at the bankruptcy price and the liquidity provider will kick in to take over the remaining orders if all positions can not be closed down. The account’s balance becomes 0.
The three-step liquidation process significantly reduces the likelihood of the user's account being completely reduced to zero when triggering liquidation. In the event of a full liquidation, Wootrade protects the liquidity of the order book by transferring remaining positions to the liquidity provider; therefore, the system significantly reduces the possibility of cascading liquidations in the market.
▶ Contact us
For technical consultation, please communicate directly with the Wootrade team or contact us by email.
- Email: support@woo.network
- Website: https://x.woo.org/