Leverage Trading

1. What is the difference between spot trading and leverage trading?

→ Spot trading means buying/selling assets you actually own. Leverage trading means borrowing funds to amplify your exposure to price movements without directly owning the full amount of the asset.

1. Do I need to own the asset to short it?

→ No. Danogo allows you to open short positions without holding the underlying asset.

1. How much capital do I need to start trading with leverage on Danogo?

It depends on the leverage you choose and the asset you trade. Danogo displays the required initial margin before you open a position.

1. What is the maximum leverage supported?

→ Maximum leverage varies per market and asset. Check directly in the Danogo app for the latest leverage limits.

1. What assets can be used as collateral?

→ Typically stablecoins (like USDM, USDA) and major assets approved by Danogo. Always confirm in the interface for the current collateral list.

1. Can I change or add collateral after opening a position?

→ For now, no. This feature will be added in near future

1. How can I avoid liquidation?

→ Use moderate leverage, monitor your margin closely, and avoid oversized positions compared to your collateral.

1. What happens to my collateral if I get liquidated?

→ Collateral will be sold to cover your losses. You may lose all collateral tied to the position. However, if after repaying the loan there is any remaining collateral left, you will be able to withdraw the remaining collateral.

1. How is the liquidation price calculated?

→ It depends on your entry price, leverage, and collateral. Danogo displays the estimated liquidation price before you confirm a trade.

1. Can I set stop-loss and take-profit orders?

→ For now, no. This feature will be added in near future

1. How are funding rates applied?

→ The funding rate represents the interest cost of the borrowed funds used to open a leveraged position. This rate is dynamic and changes based on the borrowing interest rate of the underlying lending pool.

1. Are there overnight fees?

→ Yes. These are the funding costs, which represent the interest on the borrowed funds. The interest is accrued continuously from the moment you open the position until you close it

1. What fees will I pay?

→ Trading fees (position open/close fees), interest on borrowed funds

1. Is Danogo non-custodial?

→ Yes. Positions and collateral are managed on-chain through Cardano smart contracts. Users retain control of their funds, subject to protocol rules.

1. Can Danogo go offline? What happens if the app is down?

→ If the web app is unavailable, positions remain live on-chain. Orders and liquidations continue to function via smart contracts.

1. What should I do if I experience a liquidation but think it was incorrect?

→ You can review transaction details on-chain. If you believe there was a system error, you may contact support, but liquidations executed on-chain are typically final

1. Can I keep a leveraged position open long term?

→ Yes, but you’ll be subject to funding fees and interest. These costs can accumulate, so it’s important to calculate the impact before holding long-term positions.