Stable pool

Overview

Previously, the inconvenience of navigating between decentralized exchanges (DEX) and centralized exchanges (CEX) was a necessity to engage in spot and perpetual trading. That changes today. Welcome to Navigator Exchange, where we offer a seamless experience encompassing both spot and perpetual trading functionalities. With Crypto pool and Stable pool operating concurrently, they facilitate two distinct liquidity pools, each presenting its unique advantages.

Features	Crypto pool	Stable pool
Trading	Spot and perpetual	Perpetual
Available trading assets	Blue-chip tokens and stablecoins	Crypto, Forex, and Commodities
Liquidity pool	Single pool with many assets including blue-chip tokens and stablecoins	Single pool with stablecoins only
Exchange balance	❌	✅
Data Price Feeds	Chainlink	Pyth
Collateral	Blue-chip tokens or stablecoins	Stablecoins only
Can choose collateral and output token?	✅	❌
Min. Collateral	10 USD	10 USD
Max. Leverage	Up to 100x	Up to 100x
Position fees	0.15%	0.08%
Number of trade for one asset at a same time	1	Unlimited
Trailing stop	❌	✅
Order types	Market, Limit	Market, Limit, Stop Market, Stop Limit
Liquidation	Can be partial or whole position	Whole position only
Referral	Rebates are accumulated and distributed manually	Rebates are accrued and automatically distributed from every trades made by referees

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Positions

The Navigator vault contract is entirely backed by the USDC 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.

Navigator 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.

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.

Navigator 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.

$$deltaPercent = slippageFactor * \frac{2 \times totalOI + posSize}{2 \times vaultTVL}$$

$$executionPrice =\begin{cases} markPrice \times (1 + deltaPercent) &\text{if } LONG \\ markPrice \times (1 - deltaPercent) &\text{if } SHORT\end{cases}$$

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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Profit, Loss, and ROI

Realized Profit and Losses

Realized Profit and Loss (rPnL) are used to convey a position's total profit/ loss that has been resolved (paid or received). This includes all accumulated paid fees, such as the Open Position Fee, and is calculated as follows for each $i$ of all $N$partial closes.

$$rPnL = paidFees + \sum_{i=1}^N \begin{cases} (closePrice_i - avgEntryPrice_i)\times posQty_i &\text{if } LONG \\ (avgEntryPrice_i - closePrice_i)\times posQty_i &\text{if } SHORT\end{cases}$$

Unrealized Profit and Losses

Unrealized Profit and Loss (uPnL) track the profit or loss of an open position, taking into account all unpaid accrued fees.

$$uPnL = accruedFees + \begin{cases} (markPrice - avgEntryPrice)\times posQty &\text{if } LONG \\ (avgEntryPrice - markPrice)\times posQty &\text{if } SHORT\end{cases}$$

Note: Paid fees and/or accrued fees can be either negative (losses to trader) or positive (profits to trader) which occurs in cases where the funding rate is negative (ie: Short position when LongOI > ShortOI).

Return on Investment (ROI)

Return on Investment is used to establish how profitable a given trade is, and is a key metric in showcasing a trader's ability during competitions. We use the following calculation to determine position ROI for rPnL where max collateral is determined by the greatest number the collateral has reached for the position up until the time of each partial $i$ rPnL.

$$ROI (rPnL) = \sum_{i=1}^N rPnl_i/maxCollateral_i$$

The ROI for uPnL is simply calculated as follows:

$$ROI (uPnL) = uPnl/positionCollateral$$

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Increase Collateral/ Leverage

The Increase Collateral and Leverage features offer users a dynamic solution to liquidity utilization and risk management. With this feature, users can add collateral via the Position Menu, which will decrease leverage and thus push out the liquidation price if that is a concern.

Contrarily, Increasing Leverage will result in a tighter liquidation price but can free up the collateral for other positions if desired. This function can be found in Edit collateral Modal_Withdraw.

Modal Increase Collateral

Modal Edit Collateral_Withdraw

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Add to Position

Users have the ability to use free collateral to increase the net value of their open position. Doing so increases their position size and adjusts their average entry price closer to mark price but does not change the leverage applied. This action also lowers the liquidation risk.

This function can be found in Modal Edit Collateral_Deposit

Modal Edit Collateral_Deposit

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Close Position

Users can partially or fully close a position via market order by selecting the Close option using the three dots each row of the Positions table, or simply by clicking on the position in the Open Positions Dashboard. Once this option is selected a new pop up window will appear that shows all details of a trade , allowing users to select what % of the position they would like to close.

Profits from the trade will be paid in USD on the exchange. Users can use USD as collateral for another position or redeem it for USDC (1:1).

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Edit Triggered Orders

Adapting to market conditions requires trading prowess, but also the right tools for the task. We've improved upon our position management, now allowing user's to edit their open orders. This includes the ability to edit open TP, SL, and Trailing Stop orders via the Open Orders panel below the chart.

Triggered Orders

Triggered orders are orders created to execute when certain conditions are met. Orders may apply to a new position or impact an existing pending order.

Unlinked Orders - Creating a New Position

Limit Order

INITIAL CONDITION	ORDER TRIGGER CONDITION (LONG)	ORDER TRIGGER CONDITION (SHORT)
Limit Price < Mark Price	Mark Price = Limit Price	Placed as Market Order
Limit Price > Mark Price	Placed as Market Order	Mark Price = Limit Price

Stop Order

INITIAL CONDITION	ORDER TRIGGER CONDITION (LONG)	ORDER TRIGGER CONDITION (SHORT)
Stop Price < Mark Price	Placed as Market Order	Mark Price = Stop Price
Stop Price > Mark Price	Mark Price = Stop Price	Placed as Market Order

Stop Limit Order

INITIAL CONDITION	LIMIT ORDER ACTIVATION CONDITION (LONG)	LIMIT ORDER ACTIVATION CONDITION (SHORT)
Stop Price < Mark Price	Placed as Market Order	Mark Price = Stop Price
Stop Price > Mark Price	Mark Price = Stop Price	Placed as Market Order

In the case where the limit order is activated (Mark Price = Stop Price) then the following table will apply.

INITIAL CONDITION	ORDER TRIGGER CONDITION (LONG)	ORDER TRIGGER CONDITION (SHORT)
Stop Price < Limit Order	Placed as Market Order	Mark Price = Limit Price
Stop Price > Limit Order	Mark Price = Limit Price	Placed as Market Order

Linked Orders to an Open Position

Percent vs Quantity for Closing a Position

When closing a position the user must enter the percent of the position to close for each order type. They can also manually type in an asset quantity to close, however this will auto populate the percent field based on the current position size. It is important to recognize that Navigator utilizes the percent amount, rather than quantity, to determine how much of the position will get closed when a linked order is triggered.

For example, assume there is an existing 2.00 WETH long position with two take profits set; The first at 1300.00 for 80% (shown initially as qty 1.60 WETH) The second at 1350.00 for 50% (shown initially as qty 1.00 WETH)

Now let's say the user adds another 0.50 WETH to this position prior to the price reaching 1300.00 making their total position size = 2.50 WETH.

When the price reaches 1300.00, the first take profit will trigger, closing 80% of the position (=2.00 WETH) resulting in a new position size of 0.50 WETH. When the price reaches 1350.00, the second take profit will trigger, closing 50% of this existing position (=0.25 WETH). Notice that, since percent takes precedence, the initial quantities shown are irrelevant if there are any changes to the overall position size before the linked order is triggered.

To fully close a position, you must always set a trigger to 100%

Take Profit / Stop Loss Order

INITIAL CONDITION	ORDER TRIGGER CONDITION (LONG)	ORDER TRIGGER CONDITION (SHORT)
Take Profit < Mark Price	n/a	Mark Price = Take Profit
Take Profit > Mark Price	Mark Price = Take Profit	n/a
Stop Loss < Mark Price	Mark Price = Stop Loss	n/a
Stop Loss > Mark Price	n/a	Mark Price = Stop Loss

Trailing Stop Order

INITIAL CONDITION	ORDER TRIGGER CONDITION (LONG)	ORDER TRIGGER CONDITION (SHORT)
Trailing Stop as X %	Mark Price drops X% from High	Mark Price rises X% from Low
Trailing Stop as X Amt	Mark Price drops X from High	Mark Price rises X from Low

For a Long position order:

When initiating a Trailing Stop order, the Trailing Stop price will always be lower than the Market Price. After a successful order placement, as the Market Price rises, the Trailing Stop price will also increase with the predetermined price gap. When the Market Price begins to decline, the Trailing Stop price remains static, and the order is executed when the Market Price is equal to or smaller than the Trailing price.

The logic of the Trailing Stop Order for Short positions operates in the reverse manner.