[Community Insights] Confessions of a Crypto Trader: How Shorter Protected My Position During Market Volatility

As a fellow cryptocurrency trader, I’m sure you’ve experienced sudden investment losses caused by market fluctuations. But my recent experience using Shorter has opened my eyes to a new and exciting trading experience that sets it apart as a true DeFi game-changer.

Let me share with you what happened last month. I opened a short position with 10x leverage and a size of 1 ETH on Shorter. Unfortunately, a random increase made my position lose OVER 100%. The ETH price had reached a $1693 peak, while my position had only $1536 “Unsettled USDs” — a combination of my deposited margin and the funds received from selling 1 ETH token. This meant that any liquidator who wanted to settle my position would have had to pay more than they would receive in return! I thought my position had completely vanished as usual and all my money was gone, quite reasonably. You have to pay something when you risk using leverage.

But here’s where Shorter’s magic came into play. My position was marked as “Legacy” and still remained on Shorter. After a while, when the price of ETH dropped to $1484 (less than $1536), a liquidator found this “Legacy” and repaid my debt. Somehow - I don’t pretend to understand the technical details — I even retrieve more-or-less $30 back after the so-called position heals!

If you have ever traded on other exchanges, you should know that users immediately lose all their money once a position’s liquidation level is breached. However, it seems that the settlement of a position’s loss/profit status is only calculated at the end of the liquidation process on Shorter, which literally reduces the impact of short-term market volatility. From my recent experience, you can clearly see Shorter’s liquidation system really does well for traders — even positions that lose more than 100% of their notional value — it likely still gets some odds to recover some of their costs. We can confidently trade on Shorter and no longer have to fear the cut-off caused by terrifying “doji” candles! So wonderful!

As a normal trader, I value transparency and user protection, and Shorter delivers on both counts. I’m thrilled to have discovered Shorter’s unique liquidation system. It not only saved me from a significant loss but also demonstrated the product’s integrity. If you’re tired of feeling at the mercy of the crypto market, you owe it to yourself to check out Shorter.