Trading Guide
How to trade on SalamCraft — open positions, manage margin, set orders
Getting Started
- Connect your wallet — Phantom, Solflare, or any Solana wallet
- Select a market — Choose from available trading pairs (e.g. SOL-USDC)
- Choose direction — Buy (long) or Sell (short)
- Set parameters — Margin amount and risk multiplier
Buying (Long)
When you buy, you profit when the price increases.
- You deposit USDC as margin (Rahn / collateral pledge)
- The pool provides a Qard (interest-free loan) in USDC
- The protocol buys the base asset (e.g. SOL) at the Pyth oracle price via Wakalah
- The purchased asset is held by the position until you close
Example: You deposit 100 USDC with 10x risk exposure. The pool lends 1,000 USDC via Qard. The protocol buys 10 SOL at $100 each. If SOL rises to $105, your position gains 50 USDC (50% return on margin).
Selling (Short)
When you sell, you profit when the price decreases.
- You deposit USDC as margin (Rahn / collateral pledge)
- The pool provides a Qard (interest-free loan) in the base asset (e.g. SOL)
- The protocol sells the borrowed asset for USDC at Pyth oracle price via Wakalah
- The USDC proceeds are held by the position until you close
Example: You deposit 100 USDC with 10x risk exposure. The pool lends 10 SOL via Qard. The protocol sells them for 1,000 USDC. If SOL drops to $95, you buy back 10 SOL for 950 USDC, profiting 50 USDC.
Risk Exposure
SalamCraft supports risk exposure from 1x up to the market's maximum (up to 250x).
Higher risk exposure means:
- More notional per unit of margin
- Higher potential returns (and losses)
- Tighter liquidation price — less room for adverse price movement
Orders
Limit Orders
Place an order to open a position at a specific price. The order is stored on-chain and executed by keepers when the market price reaches your target.
Take Profit (TP)
Automatically close your position when it reaches a target profit price.
Stop Loss (SL)
Automatically close your position to limit losses at a specified price.
Managing Positions
Add Margin
You can add more collateral to an open position to:
- Move your liquidation price further away
- Reduce the risk of liquidation during volatile moves
Closing
Close your position at any time at the current market price. Settlement follows the waterfall: Qard repayment → Ujrah fees → profit cap → remaining to you.
Liquidation
If the mark price moves against your position enough that your margin drops below the maintenance threshold, your position can be liquidated.
To avoid liquidation:
- Use lower risk exposure
- Add margin when your position is under pressure
- Set stop-loss orders