Go Long

You have some INJ in your wallet and if you're thinking that floor price will go up, go long and buy NFTs with making profit.

When to use

  • You’re bullish on a collection over a specific time window.

  • You want upside without buying the floor NFT.

  • You want clear, capped downside risk.

How it works (step-by-step)

  1. Pick a call → Select a buy call from a collection.

  2. Pay buy price → buy price = (strike price)/10

  3. Protocol fee → 25% of the buy price (not the strike) is removed and 75% of buy price is being sent to the market maker.

  4. Position is now open → Your position is now ready. You have rights to close your position before expiry days. (max 7 days as start)

  5. At expiry → You won't have rights to finalize your position anymore. Market Maker can finalize your position. Which means that they'll close your position, take their NFT back. You won't be charged at this phase. Don't worry

  6. Your PnL → PnL = floor − total upfront.

At 4th Step, you have two options :

  • If NFT floor price goes up before expiry time, you're on profit !

  • If NFT floor price goes down before or after expriy, you'll only loose 10% (buy price) of the NFT price which is settled at your first position opening time. But also you can buy the selected long position in order to receive your NFT for a loss.

Worked Example

  • Collection Price At Go Long (F) : 11 INJ

Option Long (Bob)

  • Strike (K): 10 INJ

  • Buy price (premium, P): 1 INJ

  • Fee (25% of P): 0.25 INJ

Alice buys this long position from Bob. Alice pays the Premium (P) and Alice's long position starts. Alice can have two scenarios that she can do in 7 days before expiry:

Outcome A (bullish wins):

  • Floor price is 15 INJ at day 3

  • Alice finalizes her position by giving the Strike Price (K) to Bob

  • Contract finalizes the position by giving K to Bob and giving NFT to Alice

  • Alice payed 11 INJ to buy an NFT which is now at 15 INJ floor.

  • PnL = 4 INJ !

Outcome B (flat/down):

  • Floor price is 5 INJ at day 6 (will be expired soon !)

  • Alice won't finalize her own position.

  • PnL = -1 INJ only (buy price)

Summary

At long positions, you can be profitable but also you can run away with small losses ! This is the smart way of longing NFTs.

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