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🌊Close Longs

The protocol's swap functionalities are long-only, thus if you wish to close or hedge your longs in either spears or shields, you have to:
Become a Liquidity Provider
Long Same Amount of Spears or Shields
Create a short position with prior-purchased options as liquidity and liquidate your options holdings passively within your chosen price range.
Instead of liquidating spears (shields) passively, you can long the same amount of shields (spears) to hedge your long exposure. See digital option put-call parity.
The following provides a tutorial for the first option:

➕Create a Short Position with Prior-Purchased Options

  1. 1.
    Go to Dashboard - Long Positions, and click the "Sell" button on the right.
  2. 2.
    Select the price ranges at which you would like to liquidate your options holdings.
  3. 3.
    Enter the number of options you wish to liquidate.
  4. 4.
    Complete the transaction.

👁‍🗨View Short Positions

Once you have minted a short position using prior-purchased options, you can see it in your "Dashboard-Short Positions" section. You can also view the details of your position, including the number of longs in calls (puts) you have closed, by clicking on the "view" button.
The following key details of your short position will be available for you:
  • Seed Deposit: The number of calls (puts) you deposited to liquidate.
  • Premium Proceeds: The amount of proceeds you received for selling the options.
  • Fees: Total amount of transaction fees you have earned.
  • Sales Volume: The number of calls and puts you have sold.
  • Position Status: the number of longs you have closed.
Note: Your long closure is not final until you remove liquidity. You must monitor your position and remove liquidity promptly once your seeded calls (puts) are sold out. Otherwise, if later the price traces back, your premiums proceeds would be used as liquidity (collaterals) to short additional puts (calls), which in turn neutralizes your long closure.