Short-term strategy

Below describes how to take advantage of MortgageFi with a short-term profit strategy, enabling quick gains in a volatile market.

Key Features

1. Early Repayment Option: Exit the loan before the first payment is due

2. Use the PnL indicator on the dashboard to identify when your position is in profit

3. Escape the fear of margin calls and liquidation risk as a result of market price volatility even with the high leverage we offer (up to 50x)

How It Works

1. Create a loan:

   • When you think the asset is undervalued by 2% or more create your loan, securing the price at that moment within your mortgage. Be sure to check the price at which MortgageFi is lending you the asset which is displayed when you create the mortgage contract.

   • Whilst we offer loans with 2-50x leverage we recommend taking the full 50x leverage for the short-term strategy since it offers the most potential for maximum gains.

   • We recommend users looking for short term gains to take numerous smaller loans that collectively amount to the total they wish to borrow for easier management of their entire position. This allows users to 'ladder out' gradually opposed to all-or-nothing profit taking.

2. Watch for when your position is in profit:

   • The MortgageFi dashboard provides a convenient way to see if you are in profit with the PnL indicator beside your loan listed in the dashboard.

   • If within 45 days before your first payment is due the price moves up more than 2% you can act to take profit on your position

   • If you want to verify the PnL manually: Be sure to check the base price at which you acquired the asset in your mortgage (this is visible in the 'loan info' tab in the dashboard. The internal pricing mechanism within MortgageFi means that the price at which you locked into your mortgage may have varied from the market price at the time. This price is clearly visible when you create your loan.

3. When you are in profit use the early repay feature to settle the loan

   • Once you've repaid the loan in full you'll receive the amount of the asset you borrowed additionally the initial deposit will be returned to you.

   • If the amount of funds required to settle the loan is larger than you can afford you can either temporarily borrow the funds from another party, then pay them back straight after taking profit or you could use a flash loan (for more experienced users).

4. Sell the asset on the open market to realise the gain

   • Sell enough of the asset to cover the amount you needed to settle the loan and keep the remaining funds as your profit (or sell the whole stack to realise your profit in USD denomination).

Benefits:

• Opportunity to profit from short-term market movements

• Up to 50x leverage with the risk of liquidation as long as users keep up their repayments

• Lower risk compared to long-term commitments

• Flexibility to react to market conditions

Risks:

• Failure to pay before the first instalment is due (45 days) will result in the loan defaulting

Ideal For:

• Experienced traders comfortable with flash loans

• Users anticipating significant short-term price movements

• Those looking to leverage MortgageFi for trading strategies