How to Trade on Sharwa: Complete Guide

What you'll learn: Create margin account, open leveraged positions, trade options, and earn yield.

Before You Start

You need:

• Wallet with Arbitrum network (MetaMask, Rabby, WalletConnect)

• $10+ in USDC, ETH, or WBTC

What you'll be able to do:

• Use ETH as collateral to trade BTC (cross-asset)

• Open leveraged positions up to 10x

• Add options to prevent liquidation

• Provide liquidity and earn yield

Step 1: Create Your Margin Account

1. Connect your wallet to Sharwa.finance.

2. Click "Create New Margin Account".

You'll see a feature overview popup.

Read it or skip – you can always come back to documentation.

Step 2: Deposit Collateral

1. Select asset: USDC, ETH, or WBTC.

2. Sign 2 transactions:

   1. Approve

   2. Deposit into margin account

Now you can trade.

Step 3: Understand your Margin Account

Account Info #1

• Margin Level: Your account health percentage. Must stay above 110% to open positions, above 105% to avoid liquidation. We use Chainlink Price Feeds to calcualte your margin level.

• Account Balance at Liquidation: Shows how much value you'd have left if liquidated now. Helps you see risk.

Balances #2

• Account Balance: Total value of your collateral right now plus unrealized PnL

• Unrealized P&L: Profit or loss on open positions (not yet closed)

• Unsettled P&L: Profit or loss from closed positions waiting to settle.

Collateral #3

Shows your deposited collateral. If you want to swap collateral just click "Swap".

Margin Account Positions #4

Lists all open positions:

• Leveraged long/short positions

• Options (puts and calls)

Step 4: Start Trade

To open a position:

1. Select direction: Long or Short

2. Enter amount / select leverage

3. Show amount of margin reserved for this position

4. Projected margin ratio after the position will be opened

   1. Check Projected Margin Ratio: Shows your new margin level after opening position.Requirements:

      • Must be ≥110% to open

      • Should keep ≥150% for safety

      • Gets liquidated if drops to 105%

After a position is opened, it will appear under Margin Account Positions

• Mark Price: based on the Chainlink price feed.

• PnL columns do not include opening/closing fees or interest rates.

Step 5: Options Trading

🛡️Options prevent liquidation. You pay premium upfront, get insurance against crashes.

You see the option chain – table of all available options with different strike prices and expiration dates.

Select paratemers:

1. Expiration Date (1 day or 3 day).

2. Direction:

   • Call: Profit when price rises (protects shorts)

   • Put: Profit when price drops (protects longs)

You have long ETH position? Buy put option.

1. Enter amount of contracts that you want to purchase. 1 contract = 1 ETH of coverage.

2. Select Payment method:

   1. USDC

   2. ETH

   3. WBTC

Check projected margin ratio after the position will be opened

• Must be ≥110% to open

• Should keep ≥150% for safety

• Gets liquidated if drops to 105%

If option is In The Money (ITM) at expiration, it exercises automatically 30 minutes before expiry. You get the profit added to your margin account balance in USDC.

Step 6: Settling Your Account

What is Unsettled P&L?

Trading fees that need final processing

When to Settle

You closed all positions. Your account shows "Unsettled P&L."Settle your account to withdraw all available collateral.

• Without settling: You can only withdraw part of your collateral.

• After settling: You can withdraw everything.

How to Settle

1. Click "Settle Account" button.

2. Sign transaction

Your account processes all fees and updates your available balance.

Why Always Settle After Closing Positions

1. Restores margin level to infinity. No liquidation risk.

2. Frees all collateral. Nothing locked, ready to withdraw or trade again.

Always Settle your account after closing positions — it restores your margin level to infinity, removing any liquidation risk.

7. Earn

Earn passive yield by supplying assets to Sharwa liquidity pools.

How It Works

Traders borrow from liquidity pools to open leveraged positions. You supply the assets. You earn the fees.

Your role:

1. Deposit USDC, ETH, or WBTC into a liquidity pool

2. Traders borrow from your pool for leverage

3. You earn borrowing fees automatically

4. Withdraw anytime (when pool has available liquidity)