Example and Concepts
To better understand Unich Pre-Order OTC, let's examine a trade involving the $UN token between Bob and Alice.
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To better understand Unich Pre-Order OTC, let's examine a trade involving the $UN token between Bob and Alice.
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During the Trading Time of Session 1, Bob believes the price of $UN will rise in the coming hours and places a buy order for 100 $UN tokens (at a UN/USDC rate of 1).
Bob's Trade Details:
Order Type: Buy
Token Amount: 100 $UN
Price: 1 USDC
Trading Volume: 100 x 1 = 100 USDC
Collateral required from Bob to open a buy order: 100 x 5% = 5 USDC (Unich Pre-Order OTC requires only 5% of the trade volume as collateral).
Conversely, Alice believes the price of $UN will fall and decides to act as a seller, matching Bob's buy order.
Alice's Trade Details:
Order Type: Sell
Token Amount: 100 $UN
Price: 1 USDC
Trading Volume: 100 x 1= 100 USDC
Collateral required from Alice to fulfill Bob’s buy order: 100 x 5% = 5 USDC.
Bob and Alice wait until 14:00 to settle the trade. (As their order was matched during Session 1, so the Settlement Time will be at 14:00 - 14:30 UTC).
The price of $UN at the start of the Settlement Time determines the trade outcome.
Price fluctuations before this point are irrelevant, so Bob and Alice do not face liquidation risks from short-term market volatility.
Case 1: $0.95 < $UN < $1.05
%ROI for both parties will ranges between: -100% < %ROI < +100%
Since Bob and Alice matched at $UN = 1 USDC.
Bob (Buyer) profits if $1 < $UN < $1.05 (price increases). Alice (Seller) profits if $0.95 < $UN < $1 (price decreases).
Both have 30 minutes to settle.
Bob sends the remaining 95 USDC and receives 100 $UN.
Alice sends 100 $UN, recovers her 5 USDC collateral, and receives Bob's 100 USDC payment.
Case 2: $UN < $0.95
Bob's %ROI will be in the range: < -100%
Alice's %ROI will be in the range: > +100%
If Bob settles, he loses more than his 5 USDC collateral, and Alice receives the full %ROI (> +100%).
If Bob does not settle, he loses only his 5 USDC collateral, which is transferred to Alice, resulting in Alice receiving a %ROI = 100%.
Case 3: $UN > $1.05
Bob's %ROI will display in the range: > +100%
Alice's %ROI will display in the range: < -100% If Alice settles, sheloses more than her 5 USDC collateral, and Bob receives the full %ROI (> +100%). If Alice does not settle, she loses only her 5 USDC collateral, which is transferred to Bob, resulting in Bob receiving a %ROI = 100%.
