2. How It Works
Temporal allows trader to push their liquidation floor away at a click. The grey line depicts the liquidation floor without Temporal. The green line depicts the new liquidation floor pushed-away ~10%
Illustrative Example
Trader deposits $10 margin, 10x leverage, $100 notional long BTC perp at $70k entry; ‘auto-protect’ selected.
Auto-protect exchanges gains on ~15% of notional above $77k in return for pushing the liquidation floor ~10% lower.
If closed at $77k: ~$7.8 profit (78% return on margin), net of ~$2.2 premium charged only when position is profitable.
Gains equivalent to ~8x effective leverage with liquidation risk of ~5.4x leverage — ~50% more margin efficiency.
Disclaimer: not financial advice; economics vary with liquidity depth and AMM pricing.
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