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.

Last updated