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Capital Protection (USD)
*Before you use the Capital Protection Bot, please make sure you understand the risks here.*
While all protocols come with liquidation thresholds to protect the lenders, there is very little protection for leveraged yield farmers. On top of liquidation thresholds, Single Finance introduces Capital Protection Ratio, offering an extra layer of protection for all leveraged yield farmers.
Unlike most of the stop-loss mechanism in the market which is based on debt ratio, our Capital Protection Bot monitors the real-time positionโ€™s value in terms of USD. Once the position net value drops below a predetermined protection threshold, the Bot will automatically close the farming position, convert all the assets to USDC and deposit the balance directly back to your wallet. It is important not to return the assets in non-stable tokens, as they are still subject to price fluctuation after the farming position is closed.
You may select the comfortable ratio for all farming strategies across the platform:
Product
Options of Capital protection level
Pseudo Market-Neutral Strategy
85%/90%
Leveraged Short/Long Strategy
0%/5%/10%/15%/20%/25%/30%/35%/40%/45%/50%/55%/60%/65%/70%/75%/80%/85%/90%
Leveraged Yield Farming
0%/5%/10%/15%/20%/25%/30%/35%/40%/45%/50%/55%/60%/65%/70%/75%/80%/85%/90%
The minimal capital protection level of Pseudo Market-Neutral Strategy is 85%.
Choosing 0% means the position is not capital-protected.
We offer 85% or 90% capital protection level for Pseudo Market-Neutral Strategy at the moment, meaning that you would not lose more than 15% (approximate) of your capital marked to USD under normal market situations. Just In case one might forget to enable this useful feature, the Capital Protection Bot is already built-in to our Pseudo Market-Neutral Strategy. You must determine a level of protection (or use our default of 90%) before you Single-Click your strategy, so you are always well-protected.
Please note that if you choose a relatively low capital protection ratio, liquidation may be triggered before capital protection when the price changes. A warning (pictured below) will be displayed.

Example

  1. 1.
    Capital: US$249.65
  2. 2.
    Capital Protection Ratio set: 85%
  3. 3.
    Returned Equity Value under the capital protection mechanism: US$249.65*0.85=US$212.20 (after paying Capital Protection Fee)
"My Strategy Positions"
For auto-compounded farm: Capital protection valuation is based on Current Value of the farming position.
For non-auto-compounded farm: Capital protection valuation is based on Current Value of the farming position + the latest value of the Harvest Rewards.

How to adjust the Capital Protection Level subsequently after the position is opened?

Please refer to our Step-by-Step Guide: