Mummy finance: When to Adjust, Unwind, or Switch

Adjustment only while the position still fits

An adjustment fits when the existing version, market direction, and settlement path remain suitable. Adding collateral, reducing size, or changing an exit order can alter the risk without replacing the entire trade. None of those controls changes the underlying product mode. A position that needs another collateral model, order type, network, or settlement route has reached the limit of an ordinary edit.

Available controls also cannot repair a trade whose premise has failed. Extra collateral lowers leverage when position size stays unchanged, yet it commits more funds to the same exposure. A partial close reduces that exposure and realizes the corresponding share of profit or loss. Full closure is cleaner when no supported edit can produce the intended state, especially before opening a position under another version.

Collateral edits and exposure changes

Collateral edits change the buffer behind a position, while size changes alter the market exposure itself. V1 permits collateral deposits and withdrawals through position management. With the same position size, depositing collateral reduces displayed leverage and generally moves the liquidation price farther away. Withdrawing collateral has the opposite effect and can leave less room for losses and accrued fees.

Adding collateral does not reset the entry price or erase unrealized profit and loss. It changes the resources available to support the existing position. Increasing position size is a different action because it expands exposure and can change the average entry price. The confirmation state should therefore show whether the request changes collateral, size, or both. That distinction matters when the goal is to support the existing exposure rather than increase it.

Should you reduce the position or close it?

A partial close suits a position that remains useful at a smaller size, while a full close removes the remaining directional exposure. Both V1 and V2 provide partial and complete closing paths. Under V2, the documented close path uses a market order and lets the user select the proportion to close. The unclosed portion continues to carry market risk and applicable fees.

Reducing size can create room to reassess without committing more collateral. It also realizes part of the position and reduces the base on which some future costs accrue. Complete closure is more appropriate when the market direction, product version, or collateral arrangement no longer fits. Neither action should be treated as finished until the remaining size and settlement balance reflect the request.

Trigger orders after the plan changes

Trigger orders need separate attention whenever a position is edited or closed. V2 supports editing open take-profit, stop-loss, and trailing-stop orders through its open-order controls. A reduced position may leave an order quantity that no longer matches the desired remaining exposure, so its trigger level and close quantity should be reconciled with the new position state.

V1 manual closure and V1 trigger-order cancellation are separate actions. An associated trigger order can remain open after the position is closed manually, creating a possible conflict with a later position. Trigger execution is also conditional: the mark price must satisfy the order, the condition must persist long enough to be processed, and a keeper must execute it. A trigger order behaves as a market order and may not fill at its trigger price.

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Cost accumulation before an exit

Position costs affect whether waiting, editing, or closing is the better fit. An exit does not reverse fees that have already accrued, and switching versions can introduce both an old-position exit cost and a new-position entry cost. Compare the quoted costs of closing the old position and opening the new one instead of viewing one fee in isolation.

V2 separates position, funding, and borrowing fees into distinct cost components. Position fees respond to the size being opened, increased, or decreased. Funding responds to the balance between long and short open interest, while borrowing cost depends on position size, the applicable rate, and time held. Those changing inputs make the live position and confirmation values more useful than a fixed estimate prepared earlier.

V1 has its own position, borrowing, execution, and conditional swap costs. A swap charge applies only when the requested open or close action requires a swap. Depositing collateral into a V1 long can incur a swap fee for converting the asset to its USD value. Preserving the same exposure with more collateral may therefore have a different cost profile from reducing the position or leaving it unchanged.

Liquidation pressure as the hard boundary

Liquidation pressure limits how long an adjustment remains available. Losses and accrued fees consume the collateral buffer, while additional collateral can increase that buffer without changing direction. A pending request does not pause market movement, so an edit submitted close to liquidation may fail to restore the intended state before the liquidation condition is reached.

V1 liquidation can affect part or all of a position, depending on the applicable state. V2 uses whole-position liquidation, with collateral, profit or loss, and accrued closing, funding, and borrowing fees contributing to the threshold. If liquidation occurs under V2, the position loses its collateral. When the remaining collateral buffer is no longer acceptable, reducing or closing the position may be more appropriate than amending an order.

V1 and V2 control differences

Version choice changes more than the arrangement of trading controls. V1 combines swaps and perpetual trading. Long positions use the traded asset as collateral, while short positions use a supported stablecoin. V1 also allows the user to select a collateral and output token. Its long-position profit is paid in the asset being traded, while short-position profit is paid in the stablecoin used to open the position.

V2 focuses on perpetual positions, uses stablecoin collateral, and settles profit into a USD exchange balance. That balance can support another position or be redeemed for USDC. V2 also permits multiple trades for one asset and adds stop-market, stop-limit, and trailing-stop controls alongside market and limit orders. These properties can favor V2 when separate same-asset positions or broader order controls are required.

The versions also differ in their price feeds and liquidity pools. V1 uses Chainlink price feeds, while V2 uses Pyth price feeds. V1 and V2 use separate liquidity pools. A version decision must therefore account for collateral, settlement, order behavior, and available liquidity rather than treating V2 as a display-only upgrade.

A version change requires a fresh position

A switch from V1 to V2 should be handled as an exit followed by a new entry, not as a transfer of an active position. The original entry price, collateral arrangement, accumulated fees, and trigger orders do not become V2 position settings. Closing the old position first produces a clear settlement state from which the new position can be evaluated.

Before opening the V2 position, confirm that the connected network, supported collateral, available liquidity, and order plan fit the new trade. Its entry executes against the price and limits available when the new request is processed. This can leave a gap between the old exit and the new exposure. Keeping both actions distinct prevents an outstanding V1 order or unsettled balance from being mistaken for part of the V2 trade.

Settlement after a V2 close

V2 closure sends trading profit to the USD exchange balance rather than automatically placing USDC in the connected wallet. The balance can remain available as collateral for another V2 position, or it can be redeemed for USDC at the documented one-to-one conversion. Closing and redeeming are therefore separate state changes with different completion evidence.

A partial close settles only the selected share while the remaining position stays exposed. The resulting balance also reflects realized profit or loss and applicable fees. If the purpose is a complete unwind, the open-position amount must reach zero before the exchange balance is treated as final. A wallet balance alone cannot show whether a residual V2 position remains.

Proof that the old state is finished

A completed action produces the expected change in the relevant position, order, or balance record. After an adjustment, the revised collateral, size, leverage, liquidation price, and orders should match the intended change. After a full close, the position should no longer appear as open, and any separately maintained order should be canceled or retained deliberately.

Settlement evidence depends on the version. A V1 long can pay profit in the asset being longed, while a V1 short can pay in its opening stablecoin. V2 records profit in its USD exchange balance until the balance is reused or redeemed. If the interface and transaction record disagree, determine the current state before submitting another request.

A completed switch has three visible facts: the old position is absent, its unwanted orders are gone, and the new position displays the intended version, collateral, entry details, and controls. That evidence separates a finished version change from a transaction that was merely signed or submitted.