This document describes the contract flows grouped by how they will be called by clients.
- How to read the images?
Each flow transaction starts from a user or liquidation bot. The farthest left is the first transaction followed by the next one in the row.
A user creates an account and deposits funds into the obligation account.
Open starts with a user setting a leverage level, borrows the funds needed, then creates a new order. At this stage the account is marked as having an open trade, prohibiting an withdrawals until the loan has been repaid in full with interest.
Close begins with first swapping the tokens in the margin account to repay the loan with interest. Then, the swapped tokens are repaid to the liquidity provider.
Withdraw is called by the trader, allowing them to withdraw the funds put into an obligation account.
When an open trade is not making a profit it will be losing money. At a certain threshold, decided by the protocol, a liquidation bot will notice the account reaching a point where the collateral will not be enough. At this time it will begin the liquidation process, which sells off some of the obligation in order to repay the loan.
