Take Profit / Stop Loss
Mighty Finance enables users to manage risk and secure gains using customizable Limit Orders, specifically through the use of Stop-Loss (Lower Limit, LL) and Take-Profit (Upper Limit, UL) orders. These orders help users automatically close positions when an asset reaches a certain price.
How Limit Orders Work
Lower Limit (LL): Protects against downside risk or locks in profits if the price falls below your specified level. LL orders are placed below the current price.
Upper Limit (UL): Secures gains automatically if the price rises to your target. UL orders are placed above the current price.
Setting LL/UL Orders
At Position Creation:
Click the "Limit Orders" button while opening a new position to define your LL/UL trigger prices.
On Existing Positions:
Select the open position from the "Opened Positions" table, and click on the "Limit Orders" panel to set or adjust your desired limits.
Example Scenario
Consider the S/USDC liquidity pair:
Liquidation Price: $0.90
Stop-Loss (LL): $0.91
In highly volatile markets, prices can quickly move past both your set limits and liquidation threshold. To minimize risk, avoid setting LL/UL orders too close to your liquidation price.
Execution & Fees
LL/UL orders automatically close positions, returning the native asset (e.g., S for long positions, USDC.e for short positions).
A 0.05% fee is charged when an LL/UL order is executed.
Mighty Finance currently supports full-position closures only. Partial closures are not yet available.
All associated LL/UL orders are automatically canceled once a position is closed, whether manually or via LL/UL execution.
Managing Your Orders
LL/UL orders appear in the "Opened Positions" table. Use the column filter if needed.
Trigger prices for LL/UL orders can be manually adjusted based on market changes.
Limit Orders Swap
Mighty Finance allows users to specify which token their position will be converted into upon LL/UL execution, ensuring a predictable and tailored exit strategy.
Important Considerations
Execution delays are possible during network congestion or extreme volatility. LL/UL orders are not guaranteed to execute immediately.
Users are responsible for regularly monitoring positions and maintaining safe distances from liquidation prices.
By utilizing Mighty Finance’s Take Profit & Stop Loss functionality, users gain enhanced control over their leveraged positions, optimizing both risk management and profit realization.
Last updated