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IMPORTANT ANNOUNCEMENT: Revision of Open Interest Balance Calculation
Effective Monday, December 22, there will be an update to the method used for calculating the open interest (OI) balance.
Further details are provided below:
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Existing Calculation Method
âą Currently determined by summing the USD value of all positions at the moment they are initiated.
Revised Calculation Method
âą Now determined by summing the notional value of all positions.
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Illustration (existing calculation)
1. BTC price = $100,000
User A initiates a long position of $100,000 (1 BTC).
2. BTC price increases to $105,000
User B initiates a short position of $100,000 (0.95 BTC).
3. Longâshort balance = $100,000 : $100,000
ââââââââââââââââââââ
Illustration (revised calculation)
1. BTC price = $100,000
User A initiates a long position of $100,000 (1 BTC).
2. BTC price increases to $105,000
User B initiates a short position of $100,000 (0.95 BTC).
3. Longâshort balance = 1 BTC : 0.95 BTC
With the revised calculation, it becomes possible to open an additional short position of 0.5 BTC to achieve a complete balance between longs and shorts.
ââââââââââââââââââââ
Rationale Behind This Change
âą Facilitates more precise balancing between long and short positions.
âą Enhances the overall operational integrity of the protocol.
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Immediate Implications Upon Implementation
The following elements will be promptly adjusted in accordance with the new calculation:
âą Funding fees
âą Borrowing fees
âą Price impact
It may take some time for markets to realign and for these values to reach a state of stability.
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