Margin Trading
Margin Trading on Sendit allows users to amplify their trading positions by borrowing assets against their collateral. By utilising the underlying lending and borrowing architecture of the protocol, users can trade with up to 3x leverage. This feature is designed exclusively for long positions, enabling users to increase their exposure to a particular asset. On top, Sendit offers a variety of benefits for its users:
Long-Only Exposure: Sendit supports long-only leveraged trading, empowering users to increase their exposure to preferred assets by up to 3x. This enables participants to amplify potential returns from upward price movements—without providing short-side opportunities to bears.
Permissionless Design: Sendit is the first trading platform to offer leveraged trading—up to 3x—on any listed SPL tokens, enabling users to trade with leverage immediately upon market creation, regardless of the token’s market capitalization or age.
Best Price Execution & Physical Settlement: All trades on Sendit are executed via Jupiter, ensuring optimal price execution and access to the most efficient liquidity routes available. Additionally, every trade is physically settled, avoiding exposure to synthetic or derivative instruments. This approach guarantees full transparency, on-chain settlement, and maintains composability with the broader Solana ecosystem.
Composability of Trading Positions Since Sendit’s margin trading is built on top of its money-market infrastructure, trading positions inherit the same functionalities as loans. For example, if you need SOL in your wallet to purchase another token, you can simply leverage your active trading position as collateral to borrow against—offering seamless flexibility without needing to close your position.
How Margin Trading Works
Select Token to Buy: Select the token you wish to take a long position in. As all trades are executed using SOL as the base asset, please ensure you have sufficient SOL available in your wallet prior to initiating the trade.
Choose your Leverage: Select your desired buy leverage - this determines the amount of additional buying power you wish to borrow in order to increase your exposure to the chosen token.
Execute Trade: Your own SOL amount + the SOL you are borrowing by going leveraged are used to buy the desired token via Jupiter.
Closing Position: A position is closed by executing a sell order on the active position. Upon completion of the trade, the borrowed SOL, along with any accrued interest, is automatically repaid. The remaining SOL is then returned to the trader’s wallet.
All underlying complexity is fully abstracted from the user experience. Traders are only required to select the amount of SOL they wish to buy with, choose their desired leverage, and confirm the trade by clicking the Buy button. To close a position, they can simply click Sell—making the entire process seamless and intuitive.
Example
Initial Position:
A trader wants to go 2x long on FARTCOIN with 10 SOL coming from their own wallet
Abstracted away from the trader, the margin engine borrows 10 SOL
The platform swaps 20 SOL for 20 SOL worth of FARTCOIN
The trader now holds 20 SOL worth of FARTCOIN (2x her initial exposure).
Market Moves Favourably:
If FARTCOIN’s price increases by 10%, the trader's position is now worth 22 SOL.
After repaying the 10 SOL borrowed (plus interest), the trader's profit is 2 SOL (minus fees and interest).
Market Moves Against Alice:
If FARTCOIN's price decreases by 10%, the trader's position is now worth 18 SOL.
After repaying the 10 SOL borrowed (plus interest), the trader's remaining collateral is 8 SOL, resulting in a 2 SOL loss (plus fees and interest).
Position Management
When traders utilize leverage, they are effectively borrowing funds to increase their exposure to a given token. In this context, the purchased token serves as collateral for the leveraged position. To maintain the solvency of the market, each margin position is assigned a liquidation price, which represents the price level at which the position will be forcibly closed and the borrowed SOL repaid by a liquidator.
Since traders borrow SOL to acquire the target asset, the resulting debt is denominated in SOL, making it inherently volatile. As a result, the liquidation price may fluctuate based not only on the volatility of the collateral asset (the purchased token) but also on the changing value of the borrowed SOL.
To avoid liquidation:
Borrow less than the maximum allowed.
Keep a buffer of unused collateral to account for market volatility.
Watch the price chart of your bought token & SOL
Monitor your liquidation price and add collateral or repay debt if necessary.
For more details, refer to the Advanced Features down below.
Advanced Features
Since Sendit’s margin trading is built on top of its money-market infrastructure, trading positions inherit the same functionalities as loans. This provides traders with a range of advanced features designed to enhance position management and risk management.
Add Collateral to your active Trading Position
When you have an active trading position, you can add collateral to your position from your wallet to de-leverage your position and lower your liquidation price.
This feature is especially useful when a position is nearing its liquidation threshold, enabling traders to reduce liquidation risk by adjusting their exposure or reinforcing their collateral.
Withdraw Collateral from your active Trading Position
When you have an active trading position, you can withdraw collateral from your position to your wallet to increase the leverage of your position and increase your liquidation price.
This feature is particularly useful when a position is significantly in profit, allowing traders to realize partial gains and secure capital without fully closing their position.
Repay Debt of your active Trading Position
When you have an active trading position, you can repay your position's debt with SOL from your wallet to de-leverage your position and lower your liquidation price.
This is particularly useful when market conditions turn volatile and you want to reduce risk by decreasing leverage and increasing your liquidation buffer without closing the position.
Borrow SOL against your active Trading Position
When you have an active trading position, you can borrow SOL to your wallet against your active trading position. Your active trading position is used as collateral. This increases your position's leverage increases your liquidation price.
This feature is particularly useful when you wish to buy another token without closing your existing position or reducing your current exposure.
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