Closing Short Farm Position

Hi there. I am a new user. I opened a short farm position. (Trying to execute a delta neutral strategy promoted by you tubers). And I am stuck with one open short farm position. How can i get out of it?

THIS IS WHAT I AM HOLDING

Oracle Price

1 mNKE ≈ 122.42 aUST

  • Collateral

-487.367918 aUST

  • Shorted

0.000000 mNKE

  • Protocol Fee

0.000000 aUST

Tx Fee
0.15 UST

WHEN I CLICK ON CLOSE I SEE THIS.

  • Burn Amount

2.063619 mNKE

  • Withdraw Amount

500.000000 aUST

  • Protocol Fee

3.788328 aUST

Tx Fee
0.30 UST

HOW MUCH I HAVE ON MY TERRA WALLET
22.10UST

CAN ANYONE PLEASE GUIDE ME ON HOW TO CLOSE THIS POSITION OUT.

When you open a short farm position, it locks your collateral, borrows the mAsset, sells the borrowed mAsset, and locks the UST received for two weeks.

In order to close the position, you will need to buy enough of the borrowed asset to repay your loan.

If this $500 is all you have, then you need to wait until the UST you get is unlocked and use it to buy the mNKE (and hope the price doesn’t go up during the next two weeks). If you have other assets available that you can bring to Terra, then you could buy enough mNKE now to close your position.

A note of caution: delta neutral sounds so easy as explained by the youtubers, but it actually a fairly advanced strategy that requires active management to appropriately manage risks. I do NOT recommend it for new users.

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Thank you @josephsavage!!! This makes sense. I did add more UST to my terra wallet and then purchased an equivalent number of shares to “close” out the position. But, now I have same shares long and same shares in the short farm. Not sure why the short wasn’t closed out. Does this mean, I still have to wait 14 days for it to automatically close the short position? I’m a little lost still. Yes, this is actually very complicated, and thankfully, I put in enough to experiment only. Thanks again and any further help (you’ve helped me a lot with that explanation) is appreciated.

Buying the shares makes you neutral. If you still want to close the position you need to click the blue ‘Manage’ button and then the ‘Close’ tab on the page it loads.
image

But… I can see in the screenshot that if you look at the decimals, your loan is for a tiny amount more than the amount you are holding long. The ‘Close’ button on the ‘Close’ tab will be greyed out unless you actually hold enough to repay the entire loan. I usually buy enough more of the mAsset than my short position size to account for slippage on the trade, and then sell the excess after the loan is closed.

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Thank you @josephsavage This was really really helpful to me. Thanks for taking the time to help me, and probably a lot more people who end up being helped by this post.

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Hi people.
Quick question.
I’m trying to close short position and get this enormous Protocol Fee.
Can you please explain mechanics of it?
It somewhat nulifies all profits from short farming.

It’s the standard 1.5% close fee:

Hi guys! I am new to mirror as well. I have a short position and waited for 2 weeks, now I want to close it but can’t seem to get it done. I think I am holding the right amount of mHood (even a little bit more) but the “close” button is greyed out. I am going crazy… Can anyone help?



I had a similar stumbling block. I believe you are going to have to deposit more UST into your account, and buy a little bit more MHOOD then the amount you are short on. Then you can close out the position.