Formula
Funding
fundingRate = (markPrice-IndexPrice)/24
+ve → Long will pay -ve → Short will pay
averageValue = (markPrice+IndexPrice)/2
percentage = (fundingRate / avgValue) * 10
distributing funding perPositionRate = fundingPayment/totalPosition*100 positionSize * perPositionRate
Price Impact ,Long , Short
Open long
old per usd = Vmm usd / Vmm xtz
x=(k / vmm usd + position size)- vmm xtz
new per usd = position size / x
price impact =((new per usd - old per usd ) * 100) / (old per usd ))
Close Long
old per xtz= vmm xtz / vmm usd
x= vmm usd - (k/ Vmm xtz + Closing Position (In XTZ))
new per xtz= closing position xtz / x
price impact =((new per xtz - old per xtz) * 100) / (old per xtz))
Open Short
old per xtz= vmm xtz/ vmm usd
x=(k / (vmm usd - position in usd))-vmm xtz
new per xtz= x / position
price impact = (new per xtz - old per xtz)*100/ old per xtz
Close Short
old per usd = vmm usd / vmm xtz
x=(k/ (vmm xtz - Closing position in xtz ))-vmm usd
new per usd = x / xtz(closing position)
price impact = (new per usd - old per usd)*100/ old per usd
Expected Close Price
Expected close price = market price - ( Price Impact / 100 )
Update VMM
k = constant (x * y = k ) x = usd , y = xtz
Open Long
vmm usd = vmm usd+ Position * Leverage
vmm xtz = VMM Xtz - x ( Refer above section to calculate x)
Closing Long
vmm usd= vmm usd - x
vmm xtz = vmm xtz + closing position
Open Short
vmm usd = vmm USD - position * Leverage
vmm xtz = Vmm xtz + x
Close Short
vmm xtz = vmm xtz - Closing Position
vmm usd = vmm usd + x
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