⁉️FAQs
What collateral does Pear Protocol accept?
We currently plan to accept USDC as collateral but we will also explore the possibility of accepting other stablecoins as collateral in the future.
What is the difference between Isolated Margin vs Cross Margin
This is how your collateral is allocated across each leg of a specific pair trade. In isolated margin mode, half your collateral is posted against the long and half your collateral is posted against the short. For example, if you entered a $100 long with 10x leverage on an ETH/BTC pair trade, $50 would be used as collateral on the long ETH perp (x10 leverage) and $50 as collateral on the short BTC perp.
In sideways markets this is never much of an issue unless you have a lot of leverage, where gains on one leg (collateral value goes up), cannot be used to post more collateral against a losing leg (as it's collateral value tends to zero), thus meaning you may be very in profit on one leg but liquidated on the other. Your collateral is 'isolated' in the sense that it is only posted against that specific perp position and cannot be shared across other positions.
Cross margining meanwhile is when the collateral is shared between both legs. In the above example, the $100 is evenly split on day 1 but then automatically utilized by the other leg to meet margin requirements.
More details are available here.
How to calculate my liquidation value?
In isolated margin mode, you technically have two liquidation values - one for the long and one for the short. You can see these levels in the advanced trade tab. This is why it's important to keep leverage low and monitor collateral. The indicative liquidation level is an indicative level and is simple an indicative calculation based on price oracle feeds. In cross-margin mode, the concept of liquidation applies more to our portfolio and thus you need to look at Maintenance Margin (or Liquidation Risk %).
Why does my trade get liquidated even though it didn't reach the liquidation value?
In isolated margin mode, one of the positions may be liquidated, whilst the other remains in profit. There are many path dependencies for a pair trade to reach a liquidation level. For example, take ETH/BTC. If ETH was to double, but BTC also doubled, then the ratio of the two would have stayed constant, even though you had been liquidated on the short leg (short BTC). Thus pair traders need to be conscious not only of the indicative liquidation level, but the path both underlyings may take to get there. In cross margin mode, we may show an 'estimated' liquidation level, since partial or full liquidations take place on the whole portfolio not on individual legs.
Why was one of the legs of my trade not executed?
This sometimes happens because the engine we're using to execute different trades fails to open due to many reasons (price changed too quickly, liquidity ran out, slippage issues, etc). The best thing to do in this scenario may be to close the remaining leg.
How do I retrieve my funds if one leg of the trade was not executed?
A. Open one tab where you can see https://beta.pear.garden/trade and another where you can see https://beta.pear.garden/withdraw
B. In trade page, go to the close tab and click on either LINK or UNI. You will see how the name of the token changes to ""Copied!"" that means you've copied the trade adapter.
C. Go to the withdraw page now and paste the adapter you just copied on the input. This will take you to a withdraw flow where you can retrieve the funds for the token you copied.
D. Repeat the same process for the other token (UNI or LINK) and you should get your funds back.
Why does my trade show in profit even though one leg was liquidated?
Your position dashboard doesn't include the liquidated trade. This is also made clear on the front end, where it clearly states that 'data reflects only the open leg'.
How do I add collateral to one leg of my trades?
This is available via the advanced features tab on isolated margin mode when you click on an individual trade.
How do I list my NFT for sale? Where can I borrow against my trading position NFT?
Users are free to list their NFT for sale on any marketplace such as Opensea. In fact, our front-end UI allows users to view their positions and list them from the app itself. WIth regards to NFTFi integrations, these are scheduled for Q4 2024.
Why is my entry price slightly different that what I see on the chart?
Sometimes a user may see a price level on the chart, but a slightly different entry price on the trade position. This is often when the trade size is very low, and occurs because our underlying liquidity source has minimum units of each asset available. The full list of minimum increments is available here
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