Open, manage, and close a position

Learn how to deposit collateral, take out a loan, optimize your risk, and close your position.

Open a position

1. Deposit collateral

Deposit ICX as collateral to earn staking rewards (currently around 10-12% a year). For a passive, minimal-risk investment, this is all you need to do:

  1. Click Deposit in the collateral section and choose the amount.

  2. Check the loan section to see how much is available to borrow.

  3. Click Confirm and complete the transaction.

Your ICX will be staked, and the deposited amount will increase every day to reflect your staking rewards.

Until voting functionality is released, all ICX collateral will be delegated towards the early Balanced contributors: ICX_Station, iBriz-ICONOsphere, PARROT9, and Mousebelt.

2. Take out a loan

Borrow Balanced Dollars for a one-off, 1% fee. Use bnUSD for payments, ICX leverage, or trades, and earn Balance Tokens (BALN) if you borrow at least 50 bnUSD and keep your risk below the reward threshold.

  1. Click Borrow in the loan section and choose the amount (minimum of 10 bnUSD).

  2. Use the position details section to assess your risk ratio.

  3. Click Confirm and complete the transaction.

Some or all of your collateral will be locked until you reduce the size of your loan. The fee is deducted from your bnUSD, so you'll need to buy more before you can close your position.

Manage your position

Use the position details section to monitor your risk and make calculated adjustments. It includes the price ICX has to reach before you no longer earn rewards, all your collateral is locked, and your position gets liquidated.

For maximum earning potential, stay close to the reward threshold, and set an alert for the ICX price shown underneath – only use the liquidation price (shown in the tool tip on hover) as a last resort.

To lower your risk ratio, deposit more collateral or repay some of your loan.

Low risk. You face minimal risk of liquidation if the ICX price drops rapidly (loan = less than 11% of collateral / collateral ratio above 900%).

Reward threshold. To earn Balance Tokens, keep your risk below this threshold (loan = 20% of collateral / collateral ratio of 500%).

All collateral locked. To withdraw any of your collateral, keep your risk below this threshold (loan = 25% of collateral / collateral ratio of 400%).

Liquidated. You’ll lose all ICX collateral when your risk hits this level (loan = 67% of collateral / collateral ratio below 150%). You'll find the ICX price at liquidation in the tool tip.

Rebalancing. Traders repay loans when they retire (burn) bnUSD for $1 of ICX collateral. Your position will sometimes rebalance to accommodate: a portion of your loan will be repaid and an equivalent value of collateral sold, based on the size of your debt. Although you don't lose anything from this exchange, it will reduce your exposure to ICX, so keep an eye on it to avoid missing potential gains as the ICX price increases.

Expected return. You'll earn the amount of BALN shown each day, unless other borrowers dilute the share. The APY uses this calculation:

(Annual BALN allocation x USD value) / Total bnUSD borrowed x100

Close your position

1. Repay your loan

To repay your loan, click Adjust or Repay in the loan section and reduce the amount.

The Used label indicates the maximum amount you can repay based on what's available in your wallet. If you need to buy more bnUSD to close your position, go to the trade page.

2. Withdraw collateral

To withdraw collateral, click Adjust or Withdraw in the collateral section, then reduce the amount. If you still have a loan, you can only withdraw up to the Locked label.

When the withdrawal is complete, you'll receive sICX, which you can swap for ICX or unstake from your wallet.