$HYPER Someone commented the following(see picture) in one of my previous post regarding hyper.
The significance of this is:
This statement describes a unique fee and incentive structure within the Hyper trading platform, which has implications for users engaged in cryptocurrency trading on that platform:
Fee Structure: Hyper charges an hourly fee for "short trades," meaning traders who are betting on a decrease in the price of a cryptocurrency will incur ongoing costs. Conversely, it "pays for long trades," implying that traders betting on an increase in price receive a benefit or rebate.
Margin and Liquidation: The comment about paying their margin in one day and not losing anything if liquidated suggests a mechanism designed to limit potential losses. This could indicate a capped risk model where the margin paid upfront covers potential losses, and liquidation, while closing the position, does not lead to further financial liability beyond the initial margin.
Implications for Hyper Crypto:
Incentivized Long Positions: The system inherently incentivizes "long" positions by rewarding them, potentially leading to more bullish sentiment and activity on the platform.
Risk Management for Short Positions: The hourly fees for short positions add a continuous cost, which could encourage shorter holding periods for short trades or make them less attractive for long-term speculation.
Defined Risk for Traders: The statement regarding margin and liquidation suggests a clear and potentially limited risk profile for traders, where their maximum loss is defined by the initial margin paid, even in the event of liquidation. This could appeal to traders seeking predictable risk exposure.
Hyper is trying to control the market sentiment as much as they can. They know they are at a delicate position.
I don't deal in Futures, Options or Margin trading as these are Haram. But those who going for them and also spot may find the above information and explanation useful. If you do then drop a like and follow. May you have a great day trading.
