Umoja Protocol provides user-friendly, affordable, and flexible options with 10x leverage and built-in liquidation protection. Even better, you can withdraw profits anytime without closing your positions.
Getting Started
Opening a position requires connecting your wallet to the Arbitrum Mainnet and having $USDC and just a small amount of ETH for gas fees. USDC is required for collateral down payment when opening a position. If you need $USDC and ETH on the Arbitrum mainnet, you can bridge here.
Please remember to always check the link and be certain you are on the correct site!!!
Now, let’s get to the fun part.
Synthetic Options allow you to take a leveraged bet on the future price of an asset with zero liquidation risk, offering far greater flexibility and capital efficiency than traditional options.
When using Umoja you can run 2 different types of Synthetic options. Your choice will depend on your preferred trading strategy informed by your perspective of the market direction. With Umoja, you can place a Synth Put or a Synth Call.
PUT
This is like a financial safety net. It’s a strategy to protect you from a drop in prices when you think the market is going down.
On Umoja, you can make gains from a declining market by placing a Synthetic Put Option.
CALL
This is like a bet that the price of an asset is going to increase. But you can do this without having to own or buy that particular asset.
On Umoja, you can use a Synthetic Call Option to take a leveraged long-position without the risk of liquidation.
How Do I Open A Synth Put?
(The numbers below are not trading advice and are for educational purposes only).
Go to https://umoja.xyz/synth/put
Step 1: Click “Synthetic Put” at the top of the form.
Step 2: Select a token from the list and the amount that you want to protect from market loss.
Step 3: Choose a date or the duration you want your protection to last until. The date you select on the calendar is when your market loss coverage will end, or in other words, when your position will expire (specifically at 11:59:59PM on the date you select).
Step 4: Choose your strike price, meaning the price you want your protection to start at. Take a look at the current price of the token for reference.
Step 5: This is optional, but helpful. If you want to view more information on what a Collateral is and how it works, click ‘Learn more’.
Step 6: Review your transaction details: Click "Details" to see a summary of the collateral required, fees, and Total down payment amount.
Step 7: Connect your wallet and approve the transaction.
You will be redirected to the Synth Put details page in your Dashboard when the transaction is complete. Your Synth will take around 15 minutes to place. Some data will be available after that time.
Still confused? Here’s a super quick visual, step-by-step walkthrough by our Founder, Robby Greenfield.
How Do I Open A Synth Call?
(The numbers below are not trading advice and are for educational purposes only).
Go to https://umoja.xyz/synth/call
Step 1: Click “Synthetic Call” at the top of the form.
Step 2: Select a token from the list and the amount that you want to bet.
Step 3: Choose the duration for the length of your Synth. The end date is when your position will expire (specifically at 11:59:59PM on the date you select).
Step 4: Choose your strike price: Your strike price represents the price above which a Synth Call is activated.
Step 5: This is optional, but helpful. If you want to view more information on what a Collateral is and how it works, click ‘Learn more’
Step 6: Review your transaction details: Click "Details" to see a summary of the collateral required, fees, and Total down payment amount.
Step 7: Connect your wallet and approve the transaction.
You will be redirected to the details page in your Dashboard when the transaction is complete. Your Synth will take around 15 minutes to place. Some data will be available after that time. You can always defer back to this page to check your Synth performance.
Need additional help? No worries, here’s a video of our Founder, Robby, giving a visual step-by-step walkthrough video on how to open a Synthetic Call.
For more information about our Synthetic Options, check out our documentation.
And that’s it!
How Do I Withdraw Profits Instantly?
You can claim your profits without closing your position on our protocol. If your strategy has gone well, you will be able to withdraw part of your balance.
Check the performance of the Synth from your details page. To withdraw accrued value from your position, you have to do the following:
Connect your wallet to the dApp.
Navigate to your Synth Put/Call details page and check the “Available to Withdraw” information.
Click the "Withdraw" button.
Select the desired withdrawal amount in USDC.
Confirm the transaction. (This typically takes around 15 minutes to complete).
Please note that there is a minimum amount to withdraw (1 USDC) and also a maximum amount (90% of your balance).
You can’t withdraw your entire balance to ensure that you have enough balance to maintain your collateral ratio above 10%–– this allows the protocol to keep the algorithm and your position running.
Synth closure
There are 2 ways to close a Synth on Umoja:
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If your Synth reaches the maturity date, the Synth will be automatically closed at the end of that day.
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You can manually close a Synth from the Synth details page anytime before the expiry date is reached. Just open your Synth details page, click the "Close" button, and follow the instructions. You will be asked to pay gas fees at this moment to register your transaction.
Your Synth would be closed and payment would be processed to your wallet within 2 hours. The performance of your Synth and the accrued value or balance can change during that time due to market volatility. This action can not be undone.
Payout
When the Synthetic Option is closed, due to expiry or cancellation, your collateral is returned to you, plus/minus the P&L made by the Synthetic Option to that point.
Once a Synth is closed, the protocol will transfer the collateral and any payouts accrued up to that respective time to your wallet in about an hour. The amount transferred will vary depending on the market conditions and Synth position trading performance about the market trend.
Reached the bottom of this guide? YAY! You’re an official Umojan!
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