3.4 Brick Trading

The trading bricks in XBRIK include buy, sell, swap, and other De-fi transactions. To prepare a transaction, it is necessary to create a wallet, open an XBRIK trading account, and connect the trading account to the wallet. There is no significant difference between buying and selling as quate trading, but the procedure is slightly different. In the case of buying, procedures such as charging the utility token (XBU), making a buy order and closing the order, transferring the buying amount and transaction fee, and allocating the purchased bricks are carried out. In the case of selling, making a selling order and closing the order, allocating the sold bricks, and transferring the selling amount and transaction fee are followed.

Buying Bricks

As with derivatives based on asset value, the trading bricks are similar to the trading method of derivatives based on the original NFT. The required input items for buying bricks are as follows.

• Trading method: quote trading

• Order submission method: market (automatic buying at market price) or limit (buying at a specified price)

• Order submission input items - Buying quantity - Margin buying rate - The total amount for buying - Liquidation price: the price at which your position will be liquidated or force-exited to prevent further losses - Margin: net purchase cost of bricks excluding transaction fees - Fee: trading fees associated with the trade. If your limit order doesn’t get filled as a taker order, you will not pay any trading fees.

Buying on Margin – Buying Leverage

Borrowing purchases of bricks with a larger quantity (amount) than the number of purchases that can be paid with the trader’s account balance is called a buying on margin or buying leverage.

Key Takeaways

• Buying on margin means you are investing with borrowed money.

• Buying on margin amplifies both gains and losses.

• If your account falls below the maintenance margin, XBRIK can sell some or all of your brick portfolio to get your account back in balance.

• Buying on margin drives expectations for the value improvement of original NFTs by trading on the premise of future price forecasts higher than the present

• Buying on margin enhances liquidity within the XBRIK exchange by increasing the quantity purchased for each unit transaction.

Automatic Liquidation - Liquidation Margin

To eliminate the risk of loss of the trading fund loan of the exchange due to the loss of the brick buying leverage, XBRIK can automatically sell the bricks of the margin buyer when the market price of the brick falls and reaches the liquidation price. The automatic liquidation minimizes the loss on the exchange's loan and margin trader's transaction loss that may occur due to the drop in the market price of the brick, and it maintains the stability of the exchange.

Selling Bricks

Selling bricks is generally done in the same way as buying bricks. But, short selling - leverage of sale will be reflected later in consideration of market stability.

Transaction Fee

Brick transaction fees are applied as a percentage of the total transaction amount. The same fee system will be used for buying on margin or short selling.