Understanding that crypto assets can be unpredictable, we are thrilled to unveil the new Stop-Loss Protection feature for your Spark positions on Summer.fi.
You can now set your position to close automatically if the Loan to Value (LTV) reaches the trigger you've selected. This ensures your position stays shielded from liquidation by initiating an automatic close before it exceeds the maximum LTV.
When establishing your Stop-Loss Protection, you can close your position to the debt token, removing you entirely from the collateral price risk. Dive deeper into the details and check out the specific Knowledge Base page.
How can I use it?
The Stop-Loss Protection is now operational on Summer.fi. It's a breeze to integrate Stop-Loss Protection to your Borrow or Multiply Positions. Check this video tutorial to learn how to use it.
How much does it cost?
There's no additional charge for configuring the protection for your position, except for the gas fees incurred during the transaction. Within the Stop-Loss Protection settings panel, you can glimpse an estimated total cost for the protection when activated.
This encompasses the transaction's gas costs and a 0.2% Summer.fi fee for the necessary swap during the transaction.
Predicting the exact gas and swap expenses at the transaction time is challenging. Hence, this estimate might slightly vary when the protection gets triggered.
You can enjoy all the advantages of Position Protection without extra costs, and without the need to continually oversee your position's status.
An example of Stop-Loss protection
Imagine initiating a RETH/DAI with an LTV of 65%. You set the Stop-Loss Protection trigger at 70%, aiming for closure in DAI. The liquidation LTV for this Position stands at 79.5%.
The Stop-Loss Protection keeps a keen eye on the RETH price from Spark's data. Should a decline occur that pushes your LTV above 70% in the subsequent oracle update, the trigger is activated, and the automation protocols close your position.
At this point, the Stop-Loss protection settles your debt, offloads a portion of your collateral to offset expenses, and directs the leftover amount back to your wallet.
Please note: We are working to build the best automation product on Ethereum. However, Automation isn't guaranteed to work 100% of the time. Several factors can relate to its success. These include, but do not limit to: liquidity, volatility and gas.
If you have any questions regarding Summer.fi, contact us at firstname.lastname@example.org or our social media.