💎Cashout Order
Last updated
Last updated
A cashout order is a function that allows a user to exit a Pre-Market/Point-Market trading position and withdraw part or all of the collateral by swapping that position with another user at any time.
Cashout feature becomes available when the buyer's and seller's trades have been matched.
The actual value of cashout assets = R×C−| [V2−V1×R] |
Cashout Volume: RxC
User's Loss: |V2-V1xR|
In which:
C is: the initial Collateral
V1 is: the Initial Trading Volume
V2 is: the Cashout Volume
R is: the ratio of Credit being cashed out, relative to the total Credit held for a specific trading pair.
Unich Pre-Market Rules: The Cashout function allows both buyers and sellers to exit their positions and withdraw part or all of the collateral, under the condition that they accept receiving back an amount equal to or less than the original collateral, as they are forfeiting their commitment early.
The rationale is that by exiting the position, you are backing out of the contractual agreement between the buyer and seller. Therefore, you must accept either breaking even or incurring a loss on the investment made when exiting your position before the payment settlement occurs.
In the case of full cashout when the cashout price is the same as the order price (M2 = M1, P2 = P1), users will receive their full initial collateral, but no gains will be made.
For Example: Bob and Alice have matched a $UN token trade with a volume of 200 USDC. At this point, Bob’s (Buyer 1) matched Buy Order is active.
Order Type: Buy
Token Name: UN
Network: Solana
Token amount: 100 $UN
Price: 2 USDC
Volume: 100×2= $200
Collateral: 100 USDC
Bob wants to cash out to exit his position at the original trading price (1 UN = 2 USDC). Using the cashout feature of Unich Pre-Market OTC, the system will create a Sell Order for Bob’s position. At this point, Bob will become the seller (Seller 2). This process happens automatically, and Bob’s order will automatically appear on the market awaiting a match.
Order Type: Cashout Sell
Token Name: UN
Network: Solana
Token amount: 100 $UN
Price: 2 USDC
Volume: 100 × 2= 200 USDC
Collateral: 100 USDC
When Sam (Buyer 2) appears and matches Bob's Cashout order (Seller 2), Bob will receive back his collateral, and Sam will take Bob’s place in fulfilling the contractual obligations towards Alice.
Cashout Asset Value = R×C - | [V2 - V1×R ] |
=100% × 100 - | $200 - $200 × 100%|
= $100
Thus: When cashing out 100% of the volume at the same price as the original transaction, Bob withdraws 100% of the collateral. (Excluding transaction fees)
Similarly, if Alice wants to cash out, the system will automatically sell her position and initiate a new buy order on the market, following the same process described above.
Bob and Alice have matched a $UN token trade order with 100 UN priced at $2 with a volume of $200
At this point, Bob’s (Buyer 1) matched Buy Order is active.
Order Type: Buy
Token Name: UN
Network: Solana
Token amount: 100 $UN
Price: 2 USDC
Volume: 100×2= 200 USDC
Collateral: 100 USDC
Bob then wants to cash out to exit his position of 50% of his trading volume at the initial trading price (1 UN = 2 USDC). Using the cashout feature of Unich Pre-Market OTC, the system will create a Sell Order for Bob’s position. At this point, Bob will become the seller (Seller 2). This process happens automatically, and Bob’s order will automatically appear on the market awaiting a match.
Order Type: Cashout Sell
Token Name: UN
Network: Solana
Token amount: 50% × 100 = 50 $UN
Price: 2 USDC
Volume: 50 × 2= 100 USDC
Collateral: 50 USDC
When Sam (Buyer 2) appears and matches Bob's Cashout order (Seller 2), Bob will then receive back the collateral:
Cashout Asset Value = R × C - | [V2 - V1 × R ] |
= 50% × 100 - | $100 - $200 × 50%|
= $50
Thus: When Bob cashes out 50% of his collateral at the original transaction price, he withdraws $50. (Excluding transaction fees).
Sam then takes Bob's place to fulfill the commitment to Alice. Similarly, suppose Alice wants to partially cash out. In that case, the system will automatically sell her position and create a new buy order in the market, following the same process described above.
