Common Questions & Confusion
We recently finished our closed testnet. Besides testing the intricacies of a cross-margin protocol, the last few weeks helped us learn what aspects confused users and how we can address them. Below you will find some common questions and areas of confusion that we encountered during the closed phase. This section will be updated throughout the open phase as new questions arise.
Even though a successful deposit or withdrawal is confirmed on-chain, it can take the front-end of the app up to a few minutes to populate the changes to your balances. Italicized because more often than not, these actions will be instant. However, Vertex utilizes the Graph to pull on-chain information onto the front-end, so sometimes speeds may vary based on different circumstances. For this reason, you will find a short message on deposit and withdraw flows notifying you of this.
Some common feedback during the closed testnet was: "I'm using more assets than I have" or "my balance is negative." If you are new to margin spot trading, below are some scenarios and examples to help clarify borrowing/negative balances:
- The user has balances of $100 USDC and $0 wBTC.
- They go to the spot trading page and buy $200 of wBTC.
- Without leverage, this trade wouldn't be possible.
- Vertex lets the user borrow USDC against their margin to execute the trade.
- The result: the user has new balances of -$100 USDC and $200 wBTC.
- Not accounting for fees/slippage/price changes, the account value stays the same.
- The user has a balance of $100 USDC and $0 wBTC.
- They want to Sell (short) $200 wBTC.
- They don't have wBTC so where does it come from? Borrows.
- The user would borrow $200 wBTC and sell it for $200 USDC.
- The result: the user would have new balances of $300 USDC and -$200 wBTC.
- Again, the account value would stay the same all things equal.
In scenario 1, the user would be borrowing the quote (USDC). In scenario 2, they borrow the asset (ETH).
A common confusion is that Vertex doesn't enable leveraged trading. This is often because we don't have a leverage slider. Over the coming weeks, a slider feature will be introduced. However, just because Vertex doesn't currently have a slider doesn't mean you can't leverage up.
Vertex is a cross-margin trading protocol. Using your margin, you can trade leverages spot and perps. Just trying depositing $100 and buying/going long $500 of an asset. You can do so by entering your desired amount in the trading console.
Market orders are IOC (Immediate or Cancel) meaning that:
- If you place an order for 10 wBTC.
- There are only enough asks on the order book to fill 5 wBTC (based on slippage allowance).
- Your trade will result in a partial fill - the 5 wBTC will be bought and the rest of the order "failed."
"Failed" here just means the order wasn't able to execute fully. Testnet isn't always a fair representation of what's to come on Mainnet. With better liquidity and market-making partners, the issue will be quite uncommon if not irrelevant. However, for the testing period here are some solutions:
- Try using a limit order whereby the order sits on the book and fills up. You can check the status (filled %) in open orders tables.
- Try placing a smaller market order.
When you press the
close positionbutton Vertex places a market order equal to the size of your position but opposite side (i.e. you are 100 long, close = 100 short). Since this is a market order, and due to low liquidity and slippage allowance, the close position may result in a failed order. Try closing a portion of the position as discussed in Trading.
Vertex utilizes the Tradingview library to deliver a familiar trading experience. We will continue to update the charting functionality and features, such as indicators. Price charts may also look weird at times. Testnet isn't always a fair representation of mainnet. Low liquidity and no real risk can cause irregular-looking charts.
Vertex is a cross-margined protocol enabling you to utilize all your funds across deposits, positions, and PNL towards your margin. This empowers traders to trade with more flexibility and efficiency. Isolated margin can be a useful tool, so its potential addition and implications on protocol design and UI/UX post MVP will be considered.