Frequently Asked Questions¶
What is Unimex.Trade?¶
Unimex is a decentralised exchange for trading tokens with up to 10x leverage. It consists of a DeFi lending and borrowing platform, as well as an autonomous smart contract that performs trades on Uniswap and Pancakeswap. What is unique about Unimex is that all margin trades are issued and settled entirely on-chain.
Unimex.Trade is the web interface for interacting with the Unimex margin trading protocol.
What can I do with Unimex.trade?¶
Margin trade token pairs through Uniswap with up to 5x leverage.
Switch to Binance Smart Chain and margin trade through Pancakeswap as well.
Lend individual tokens to earn 10% yearly interest and 0.2% of all trade volume in WETH, WBNB, and stablecoins.
By adding your balance to a token’s liquidity pool, traders will be able to borrow that balance for margin trading. As a result, you will receive a portion of trading volume as rewards.
Stake UMX / DGN and earn up to 0.1% of all trade volume in WETH, WBNB, and stablecoins.
Do I need KYC to use Unimex.trade?¶
No. And same as Uniswap, there are no access restrictions. All you need is a Web3 compatible wallet. We recommend using the Metamask wallet extension for Chrome or Brave Browser.
Is Unimex safe to use, what is the advantage?¶
The Unimex protocol operates as a decentralised, autonomous smart contract on both Ethereum and Binance Smart Chain.
Because the entire trading and lending logic is contained inside blockchain transactions, Unimex inherits security from ETH and BSC, which also means that no one can restrict, reverse, or alter trades and transactions.
The advantage is that as long as Ethereum or BSC is online - all withdrawals, deposits, and trades continue as usual. This is ultimately the goal of DeFi (decentralised finance).
What is Unimex.Network and Degen.Trade?¶
Unimex.Network is a network of projects that all tie into the UMX token.
Leveraged margin exchange with up to 5x leverage on vetted high-liquidity token pairs - for whales, bears, dolphins and bulls. The governance and staking token of the whole Unimex Network is UMX.
Layer-2 leveraged margin exchange with fully customisable pools and LPs with up to 1000x leverage - for true apes, degens, and experimental traders. The governance and staking token of Degen Protocol is DGN.
What is the Philosophy of Unimex?¶
Freely accessible DeFi for everyone
Smart contracts as the foundation for a future-proof economy
Token-based governance and publicly available smart contracts code
How can I stake UMX and DGN?¶
Go to https://unimex.trade/staking, make sure you are connected to Ethereum Mainnet, add an amount and click deposit.
The first time you are doing this, you will have to perma-approve a certain amount to deposit. Click “approve” and confirm the transaction in your wallet.
Once the smart contract interaction is confirmed, click deposit and add your amount, and once again confirm the transaction.
To stake DGN, go to https://unimex.trade/staking, make sure you are connected to Binance Smart Chain and follow the same process.
Are there any staking fees or impermanent loss when staking UMX or DGN?
No. You always withdraw the same amount of tokens you deposit. There are no staking fees or time locks either.
What is the APY for staking?¶
Since stakers earn a % of each trade on the network, it is very difficult to estimate staking APY. By staking, you earn WBNB / WETH (depending on the network) for each trade. The APY depends highly on the amount of volume on the platform.
Where can I buy and sell UMX and DGN?¶
You can find UMX on Uniswap, and several centralised exchanges such as Hotbit and Gate.io. DGN is available on Pancakeswap, which runs on Binance Smart Chain.
What is the address of UMX and DGN?¶
The ERC20 address of UMX is:
The BEP20 address of DGN is:
What is a margin account and how do I deposit WETH or WBNB?¶
Your margin account holds WETH on Unimex.trade for Ethereum, and WBNB on Unimex.trade for Binance Smart Chain. This account can place trades on the Unimex Margin Contract.
To deposit either currency to your margin account, click deposit and enter an amount. The first time you are making a deposit, you will have to approve the smart contract, which is a separate transaction. This is similar to Uniswap and other Defi apps.
After you have perma-approved the amount, you can click deposit and transfer a balance of WBNB or WETH into your margin trading account. This balance will then be available for trading.
How do I make a leveraged trade using Unimex?¶
First deposit WETH or WBNB into your margin account as per prior instructions
Once you have a balance, choose a token pair such as UMX/wETH or CAKE/WBNB and the leverage multiplier you would like to use.
If you would like to place a long position on CAKE, press LONG CAKE.
If you would like to place a short position CAKE, click SHORT CAKE.
What are Stop-Loss and Take-Profit?¶
SL and TP are good ways to protect your trades from fluctuations.
Setting a stop loss of 10% means that if the token falls by 10%, your order will close.
Setting a take profit of 20% means that if the token rises by 20%, your order will also close.
How much leverage is available?¶
Up to 5x (soon 10x) depending on the liquidity of the token pair on Uniswap (or Pancakeswap on BSC).
When you place an order, your trade will need to borrow funds from the Unimex lending pool.
If there is enough liquidity in the WBNB or WETH pool, you can place a long on any token (because you are borrowing WBNB or WETH to buy it).
If you are attempting to place a short on a token, please make sure that there is enough liquidity in the lending pool for that token (because you are borrowing that token to sell it).
What are the risks of leveraged trading?¶
In leverage trading, in an oversimplified way, the impact of the price fluctuations is multiplied by the leverage with which the position was opened. This means that at 5x leverage both your profits and losses will be multiplied by 5. Never trade with more than you can afford to lose, and make sure to do your own research before trading.
What is an example of a leveraged trade?¶
Disclaimer: This is meant to be an oversimplified and practical explanation of a leverage implementation in a trade and does not by any means abide to the standards of the official terminology of leverage and hence shall not by used by any means as a guide or research on trading with leverage.
If you want to use leverage and avoid huge losses make sure to do your due diligence and thoroughly research the mechanics and fundamentals of leverage trading by official recognised sources covering this and any other subject abiding to this paragraph or the one above it. For example, you open a short position for 100 tokens with 4x leverage. Let’s say the rate is 1 wrapped ETH per token. You deposit 100/4 wETH as collateral (+ liquidation bonus). As a result, 100 tokens are swapped for 100 wETH by the margin contract. Now let’s say the token price goes down. Now 1 token is only worth 0.5 eth. You close your position. To pay back 100 tokens to the pool, only 50 wETH are converted. The other 50 wETH plus 25 wETH of collateral go back to your balance. Minus fees, that means you made 50 wETH profit. NOTE: You can get the correct amount for your profits & losses by multiplying the P&L of your order by your leverage. For example: 10% increase * 4x leverage = 40%
It is also possible to place a long or short position on BTC or UMX?¶
Yes. Using the tickers WBTC (wrapped) and UMX.
Why are there gas fees for trading?¶
Like all true DeFi protocols, you will need ETH or BNB for gas fees to interact with the UniMexMargin smart contract(s). This is because every action on the exchange is a transaction (which contains commands) on either Ethereum or the Binance Smart Chain.
Why do I need to approve before I make a deposit?¶
Smart contracts require you to approve sending funds before you can do so. This is not only a security precaution, but also a result of the way that smart contracts function.
How are trades (swaps) settled on Unimex?¶
Trades and swaps on UniMex are verifiably settled on-chain through Uniswap on the Ethereum blockchain, or Pancakeswap on Binance Smart Chain. There are no centralised nodes involved in the margin trading mechanism at all.
How are token pairs added?¶
Token pairs are added on Unimex by the team after vetting their smart contracts and liquidity. In future versions, new token pairs will be selected via UMX governance. This is a necessary measure to protect lending pools from overt manipulation.
Degen Protocol, on the other hand, will make it possible to add any arbitrary token pairs at will.
How do liquidations work?¶
Liquidations on orders that have exceeded their margin can be triggered using Ethereum transactions by anyone. You can use the GUI to interact with the smart contract. In the orders tab, you will see orders which can be liquidated. There, you can click “auto close” and the order will liquidate.
What happens if your order is liquidated?¶
Liquidation is force-closing an order that has exceeded its margins and collateral.
A position can be liquidated if the swapped amount and collateral minus current liquidation bonus cannot be converted back to pay for the owed amount from the pool (and fees) times a 10% of margin of safety. This means that a position can be liquidated if: (Swapped amount + collateral) - liquidation bonus <= 1.1 * (owed from pool + fees) Note: values are converted to wETH.
How do I liquidate an order?¶
Go to the Positions tab and orders that can be liquidated will appear. Press AUTO CLOSE on the order. If two or more users AUTO CLOSE the same order simultaneously, the one whose TX arrives first gets the liquidation reward of 0.09 ETH or 0.09 WBNB.
How are liquidations handled?¶
When margin trades go over their SL/TP or below liquidation price, any other user or user-made bot can liquidate that order and earn a liquidation bonus in WETH.
What is the liquidation bonus?¶
Manually liquidate or auto-close other traders when they go over their margins, and you will earn bonuses in WETH or WBNB. Click the Positions tab to see current open orders.
How does lending work?¶
In UniMex, a central factory smart contract deploys lending pool contracts. That is, smart contracts which permit the lending of specific ERC20 tokens so that margin traders can borrow them for leveraged trading.
Lenders receive both 10% yearly interest as well as 0.2% of total trading volume.
Why does the lending pool APY show 0 to 2000%+?¶
APY is based on trading volume on the platform. For this reason, it is difficult to estimate the APY. The graphical interface shows an estimate based on the activity in the past 24hrs and may not be accurate for the timeframe of an entire year.
NOTE: 0% APY means based on that past 24h period, there has been a 0% gain. This does not mean that the yearly gain is 0%, as trades can occur at any time.
What oracles does Unimex use?¶
Unlike other decentralized exchanges, Unimex does not use any oracles. Unimex gets price data directly from Uniswap and Pancakeswap using a customised smart contract based on TWAP (time-weighted average price).
What technology does Unimex use?¶
The Unimex trading logic is written in Solidity, and therefore compatible with both Ethereum and Binance Smart Chain.
What is On-chain or Layer-1?¶
Layer-1 means that transactions are used directly for every operation. While this increases gas costs over layer-2, it is more ‘barebones’ and reliable. A layer-1 on Ethereum would mean that it is simply a smart contract on the EVM.
Unimex is entirely on-chain, this means that all trades and operations are individual transactions and smart contracts interactions on Ethereum and BSC.
What is Off-chain or Layer-2?¶
Layer-2 means that there is an intermediate step between operations and transactions. This requires the use of a second ‘layer’. Layer-2 for Unimex is currently in development.
I just placed an order, why can’t I see it yet?¶
Your order should appear a short time after your transaction is confirmed. If this does not happen, refresh your browser and re-connect your wallet. Note that on some blockchains that are not based on proof-of-work, the blocks may be out of sync. This means that it will take some time for the orders to appear on that specific chain.
Note for UNIMEX ON ETHEREUM: Since all orders on Unimex are smart contracts interactions, they require individual transactions to be confirmed for any interaction.
This also means that if you place an order on Ethereum while the network is especially busy, it may take far longer than expected for the order to clear unless you set a very high gas fee (above the average during that time).
Why do I get a message saying Tx Will Fail?¶
Make sure you have added enough WETH or WBNB balance to your margin balance in order to make your trade.
One other possibility is that all lending pool funds for your trading pair are already escrowed for other orders. In this case, you will have to wait until lenders add funds or other trades are closed or liquidated.
Why are some token pairs limited to 2x, 3x leverage, etc?¶
Some token pairs have lower liquidity, which leads to higher volatility and increased susceptibility to price manipulation. Thus a position with 5x leverage can get liquidated very quickly with a 20% P&L drop.
Why can’t I see my order?¶
It is possible that your order has crossed the threshold for liquidation and been liquidated, or triggered your stop-loss / take-profit if you have set one.
In order to check, navigate to the POSITIONS tab.
Make sure that “show closed positions” is enabled.
If you still cannot see your order, it may be an issue with the RPC. Typically this happens more often on Binance Smart Chain than Ethereum. What this means is that there might be a slight delay in displaying your order on the web interface.
If you would like to close your order while it is not visible, please navigate to: How to close a position manually
What is Uniswap and Pancakeswap?¶
Uniswap and Pancakeswap are AMM (automated market makers), which are decentralised protocols that make it possible to trade ERC20 and BEP20 tokens without a middleman or counterparty.
Unimex uses the Uniswap and Pancakeswap contracts to settle margin trades.
Which features are coming soon?¶
Token-based governance, additional Layer-2 solutions, and more.