Positions
The Mummy vault contract is entirely backed by the USDC.e stablecoin. The platform infrastructure was built to accept a variety of other stable assets, but is currently only supporting the bridged USDC asset to simplify collateral and liquidity deposits. By funding an exchange wallet, users can gain access to USD on the platform.
Traders can manage account balance risk by using an optional percent slider rather than inputting a collateral amount. For example if a user has 10,000 USD in free collateral and types in 2.00% then they will put up 200 USD collateral into the position.
Mummy V2 offers the following order types to open a new position:
Market: Order will fill near the current mark price. The difference between where the order is executed and the current mark price is determined by any artificial slippage and/or execution delay due to keepers.
Limit: Order will fill at selected limit price or better. For longs, if limit price is set above mark price, then the order is treated as a market order. For shorts, if the limit price is set below mark price then the order is treated as a market order.
Stop Market: A market order will be activated when price reaches the stop price. Stop price must be placed above mark price for longs and below mark price for shorts. If not the order will be triggered as a market order.
Stop Limit: A limit order will be activated when the price reaches the stop price. Stop price must be placed above mark price for longs and below mark price for shorts. If not the order will be triggered as a market order.
Mark Price: This will show the price of the asset at the current moment in time.
Liquidation Price: This will show the asset price at which the position will be liquidated. If the mark price of the asset goes beyond this point (lower in case of a Long position, higher in case of a Short position), it will automatically close the position and the majority of the collateral used for the position will be lost. Please take note that the liquidation price can fluctuate as funding fees are deducted from your collateral throughout the duration of the open position.
Setting a TP/SL at Position Creation: An option is provided during opening of a new position to enter a TP and/or SL that is automatically set to fully close 100% of the position at the given trigger price for each. It is possible to manually enter a percent amount for each which will auto populate the corresponding price level at which the TP/SL is triggered.
For example, assume a user is LONG on ETH/USD via a Limit Order set a $1886.93. They can then set a SL at 5.00% (~$1797.11) and a TP at 5.00% (~$1986.24), resulting in a Risk to Reward on the trade of 1:1.
Front-running Protection
To protect users and the exchange from front-running, both keepers and an artificial slippage mechanism have been introduced.
Keepers
When a trader opens a new position via market order, the order first goes into a pending state.
Mummy V2 maintains keeper nodes that monitor pending orders and validates positions before each order is executed at the latest oracle price.
Artificial Slippage
This new mechanism will simulate an order book by adding a slippage percentage to each order that is proportional to the vault utilization and position size.
Each index token will have its own slippage factor that will be a function of the tokens historical volatility, that of which is most often correlated to depth of market.
For example, assume a market order to long BTC at 30,000 with a deltaPercent of 0.05% is placed. In this case the order would execute at a price of 30,015.
Upon order confirmation of a new position users can also manually enter the max slippage that they are willing to accept as shown in the red box. The order will only execute if the execution price is less than the current mark price plus/minus (if long/short) the slippage percent entered here.
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