Margin Trading

Margin trading uses collateral and borrowed assets to increase your market exposure. SEAL's current implementation builds leveraged spot positions using Aave and Uniswap V3, rather than perpetual futures.

Available for sandbox demonstration. Mainnet margin trading is not yet available. Private funding aims to obscure the link to your funding wallet. The margin account, its assets, collateral, debt, trades and health factor remain public. Read Privacy and Margin Risk before opening a position.

Public and private funding

The ticket defaults to Public · Wallet balance. This mode funds and controls a margin account from the connected public wallet.

Choose Private · SEAL balance to fund an account from your private balance. The app creates a separate position controller key, saves it inside your encrypted SEAL account, and uses the intent service for private actions. Preserve a current account backup. Private funding does not make the position itself hidden.

Supported collateral and markets

Longs hold the selected asset as collateral and borrow a quote asset. Shorts use quote-asset collateral and borrow the selected asset. The current quote currencies are USDC and, where configured, USDT. Idle custody assets are excluded.

The app checks eligible reserves, borrowability, a supported direct market and available liquidity. These differ by network and can change. See Getting Started → trading support for the configured and tested scope.

Staked ETH loops

The Leveraged yield page loops staked ETH on Ethereum. One flash-loan transaction stakes your ETH together with a WETH loan through Lido, supplies the wstETH to Aave in its ETH-correlated E-mode, and leaves the loan as Aave debt. Aave charges no flash-loan fee because the loan opens as variable debt. A loop uses a dedicated account with wstETH collateral and WETH debt. Public and private balances have separate loop accounts; neither can share an account with trading margin. The first successful contract action permanently selects the account purpose. Trading OPEN operations are rejected on loop accounts, LOOP/UNLOOP operations are rejected on trading accounts, and loop accounts reject unrelated asset pairs, even after closure. Use a different account salt for each purpose. These guards apply to newly deployed implementations; existing non-upgradeable accounts do not change.

A loop earns Lido's staking yield on the whole position and pays Aave's WETH borrow rate on the debt. It beats plain staking only while the staking yield is higher than the borrow rate. The page compares both rates, shows the daily difference from plain staking, and shows how many days of extra earnings pay for the exit.

Closing buys back the debt in a Uniswap flash swap and returns the rest as wstETH. The swap cost is a share of the debt, so it grows with leverage. Converting the returned wstETH to ETH is a separate swap or Lido withdrawal-queue operation; queue timing varies. Loops are available where Lido staking exists, which is Ethereum only.

The health display also estimates the relative wstETH/ETH oracle-price drop to liquidation: 1 - 1 / health factor. Its tooltip shows the corresponding ETH-per-wstETH boundary. This holds balances and Aave's liquidation threshold constant; debt growth and parameter changes move the boundary. A market discount alone may not change Aave's oracle, and wstETH is not pegged 1:1 to ETH.

The current UI executes loop management in the sandbox only. Overview and Growth include loop equity after debt and net staking/supply yield minus borrowing costs. Loop activity has its own filter. Live loop execution remains disabled pending deployment and its execution integration.

Risk and exits

Borrow interest accrues over time. Aave can liquidate an account when its health factor falls below the required threshold. A loop's health factor falls slowly whenever Aave's borrow rate is above the staking yield. Price impact, slippage, oracle changes, fees, token restrictions and reserve liquidity can cause losses. Keep enough collateral and monitor the account after every action.

Open a long

For a WETH/USDC long, the margin account holds WETH collateral and owes USDC. You gain if WETH's value rises enough to exceed debt and costs; a fall can reduce your equity and trigger liquidation.

1. Choose Long, the asset and quote currency, and the funding mode.
2. Select the funding amount and leverage.
3. Review the actual collateral and debt assets, expected exposure, health factor, slippage and all costs.
4. Save your private account backup when using SEAL funding, then confirm the reviewed action.

The app's funding choices are separate from the final collateral/debt pair. Do not assume that depositing USDC means a WETH long will retain USDC as its collateral.

Open a short

For a WETH/USDC short, the account uses USDC collateral and owes WETH. It borrows and sells WETH exposure. Closing buys the WETH needed to repay the debt. A rising WETH price can increase your repayment cost and cause liquidation.

Choose Short, select the market and funding, then review the same terms as for a long. The borrowed asset must be borrowable on that network; a token being supported for saving does not make it shortable.

Leverage and borrowing

The UI offers choices up to 5× for longs and 4× for shorts. These are selections, not guaranteed execution limits. Aave lending rules, current debt, collateral, caps, liquidity and costs determine what can execute. The extension adds no independent fixed leverage cap. An unsupported request fails rather than silently executing at a smaller size.

Borrowing interest accrues over time and rates can change. Leveraged positions combine market exposure with debt: compare supply income against borrowing interest and execution costs. See Fees & Costs.

Position value and health factor

Equity is the value of collateral and retained proceeds minus debt. The app's P&L is an account-level valuation including its recorded contributions and returns; it is not a separate profit number for every market in a shared account. Missing history or prices can make a valuation unavailable.

Health factor measures how much liquidation protection your collateral provides under Aave's rules. A health factor below 1 permits liquidation. Prices and interest can change it after confirmation. A reviewed minimum health factor controls whether an action can execute; it does not stop later liquidation.

Manage the position

• Add collateral improves backing without opening new borrowing.
• Repay reduces debt using additional funds.
• Reduce unwinds part of the selected market and repays part of its debt.
• Close repays the selected debt and releases collateral where the remaining account is healthy.

Removing collateral reduces protection and can be blocked while debt still depends on it. Use the management action's preview rather than assuming all collateral is withdrawable.

Several markets in one account share collateral, debt and one health factor. Use a separate account when you need separate liquidation risk. A market close does not necessarily close every reserve or destroy the account. Where offered, review close all separately.

A solvent reduce or close can use released collateral to repay debt without additional funding. It can still fail if other debt needs the collateral, liquidity is unavailable, or proceeds cannot cover repayment and costs. Choose the proceeds destination in the review. A completed return to SEAL creates new private records; publicly paid proceeds remain public.

Liquidation and limitations

Monitor the account after each action. Liquidation can affect collateral from every market in that account. It does not authorize liquidation of separate SEAL balances or another margin account, although broader protocol risks remain.

Automatic stop-loss and take-profit orders are not implemented. Profit-taking uses reviewed Reduce or Close actions. Read Margin Risk for losses, liquidation, oracles and dependencies, and Margin Architecture for technical details.