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  • WELCOME TO UNICH
    • 🏆What is Unich?
    • 🌐Unich Introduction
      • Opportunities in Web2 and Unich's Solutions
      • Web3 and the Future of Decentralization
      • OTC Market Evolution and Unich
    • 🪙Unich Tokenomics
    • 🤝Contributor Program
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      • Master Trading Program
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  • FREEDOM POINT
    • 📚Introducing Freedom Point
    • 💡Ways to Earn Freedom Point
    • ⚙️Conversion mechanism
    • 📌FD Point Rules
  • Pre-Market OTC
    • 🌟Introduction
    • 🛗P2P Trading
    • 🗳️Trading Terms
    • 📃Bid Order
    • 💎Cashout Order
    • 💸Settlement Rules
    • ⚖️Platform Fee
    • 🖥️User Guide
    • ✍️Listing Regulations
    • ❓F.A.Qs
  • Pre-Order OTC
    • 🌟Introduction
    • 🛗How to Trade
      • Trading Time
      • Settlement Time
  • 💸Example and Concepts
  • 💎Cashout Order
  • 🖥️User Guide
  • ⚖️Platform Fees
  • ❓F.A.Qs
  • Point-Market OTC
    • 🌟Introduction
    • 🛗P2P Trading
    • 🗳️Trading Terms
    • 📃Bid Order
    • 💎Cashout Order
    • 💸Settlement Rules
    • ⚖️Platform Fee
    • ✍️Listing Regulations
    • ❓F.A.Qs
  • Options OTC-Market
    • 🌟Introduction
  • WALLET
    • 🌟Introducing Unich OTC Wallet
    • 🔑Unich Web3 Wallet
    • 🧡OTC Trading Platform
    • ⚡Dapp Browser
    • 🕹️Social Quest
    • 💼Swap
    • 🌉Bridge
    • 📞Customer Support and Community Engagement
    • 🔒Security Measures
    • 📖Conclusion
  • Market Maker
    • 💦Market Maker Participation
    • 💧Incentive Program
  • LEGAL
    • 📙Privacy Policy
    • 📙Terms and Conditions
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  • The Full Cashout Order
  • The Partial Cashout Order

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  1. Pre-Market OTC

Cashout Order

PreviousBid OrderNextSettlement Rules

Last updated 5 months ago

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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.

The Full Cashout Order

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.

The Partial Cashout Order

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.

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