đUse Cases
If you are having a hard time understanding, don't worry! Here is an example:
Suppose you want to purchase an SMB NFT worth 100 SOL, but you only have 30 SOL. With our platform, you can borrow 70 SOL from us as leverage to help you acquire the NFT. You can open the position for 14 days and take advantage of potential price appreciation.
Managing your position is easy with Robox.Fi You have multiple options:
If the SMB price goes up to 200 SOL, you can close your position and liquidate the NFT. Your net profit would be calculated as follows:
200 SOL - 70 SOL - 2% (1.4 SOL) - 30 SOL = 98.6 SOL
Keep in mind that interest rates on the loan vary.
The net profit is more than 3x of your original investment. In addition, you might receive an airdrop or ticket to the event as an NFT utility.
If the SMB price falls to the liquidation price of 74.9 SOL, the platform will automatically liquidate the NFT by selling it via AMM. The liquidation price is equal to the amount of SOL borrowed by the trader + interest + liquidation fee (5%). In this case, it would be:
70 SOL + 1.4 SOL + 3.5 SOL = 74.9 SOL.
Suppose the SMB price falls to 85 SOL, and you expect the price to continue dropping. In that case, you can sell the NFT to minimize your loss. The platform would take:
70 SOL + interest (1.4 SOL) = 71.4 SOL
In this scenario, you would receive 13.6 SOL, resulting in a total loss of 13.6 - 30 = -16.4 SOL.
If you pay back the loan within 14 days, the NFT will be unfrozen in your wallet. But, if you fail to pay back the loan, the NFT will be sold, and you will receive the remaining amount after repaying the loan amount, interest, and liquidation fee. However, even in this case, you still have a chance to profit.
Last updated
