LogoLogo
  • Introduction
    • Mortgage product
    • Earn product
    • NEW! Refinance
  • How MortgageFi Works
    • Mortgage borrowers
      • Early repayment feature (ERF)
    • Earn - Liquidity Providers
    • Refinancing
  • Getting Started
    • Components
      • Mortgage Vaults
      • Earning Vaults
      • Loan NFTs
      • Defaults
      • ERC20 Integration
    • Points system
      • Liquidity Incentives
      • Referral Incentives
  • FAQ
    • General
  • MortgageFi Ecosystem
    • Contracts
    • Audits
    • Governance Structure
    • Integrate your own token
      • Integration Process
      • Benefits of Integration
      • Considerations
      • How to apply
    • Self-Balancing Protocol
      • Three Pillars
      • Protocol Design
      • How the System Balances
      • Security and Attack Vectors
      • Advantages of This Model
  • Under-Collateralized Loans
    • What are Under-Collateralized Loans?
    • Key Features
    • How it works
    • Risk Management
    • Benefits for Borrowers
  • Compared to other Lending
    • Use Case Example
  • Comparison Examples
    • Funding Rates and Position Stability
    • Zero-Sum Game vs. Mutual Benefit
    • Long-Term Holding vs. Short-Term Trading
    • Risk Profile
    • Costs and Predictability
  • Yield for Earn Vaults
  • Risk Management
    • Risk Management Strategies
    • Risks and Mitigations
    • User Responsibilities
    • Community Risk Management
    • Ongoing Risk Management
  • Strategies
    • Long vs Short-term Strategy
      • Long-term strategy
      • Short-term strategy
      • Comparing the Strategies
    • Hedge against the bear market
    • Cross-Chain Operations
    • Token Sink
Powered by GitBook
On this page
Export as PDF
  1. Comparison Examples

Costs and Predictability

GMX and Similar Futures Platforms:

  • Costs can be unpredictable due to varying funding rates

  • Potential for unexpected fees during high volatility periods

MortgageFi:

  • Predictable costs through fixed USD repayments

  • No hidden or fluctuating fees

Example Scenario

Imagine Alice and Bob both want to gain leveraged exposure to 3 ETH:

Alice uses GMX:

  • Opens a 3x leveraged long position on 1 ETH

  • Pays fluctuating funding rates, potentially eroding her position over time

  • Risks liquidation if ETH price drops sharply

Bob uses MortgageFi:

  • Borrows 2 ETH against his 1 ETH collateral

  • Makes fixed USD repayments, maintaining his 3 ETH exposure

  • Can hold his position long-term without fear of liquidation due to price fluctuations

MortgageFi offers a more stable, predictable, and potentially less risky way to gain leveraged exposure to crypto assets, especially for users looking to hold positions over longer periods.

PreviousRisk ProfileNextYield for Earn Vaults

Last updated 1 month ago