Cloverfield — Changelog & Account Overview Glossary

Lafachief
6 min readFeb 8, 2023

Lets start this changelog with a quick DEUS v3 recap.
It’s been around one month since the Cloverfield & dSynths closed alpha with the test, and real money.

For everyone not entirely up to date on what dSynths or Cloverfield are

Cloverfield = DEUS v3 crypto version hedgers are isolated per user.
You can check out Cloverfield here:
https://test-interface-v3.vercel.app/trade/BTCUSDT

dSynths = DEUS v3 Forex/Stocks version hedgers are isolated per trade.
You can check out dSynths here:
https://app.dsynths.com/trade/EURUSD

You need to be whitelisted to get trades executed.

To get whitelisted, you should check out this thread:
https://twitter.com/DeusDao/status/1615770207058034688
quote and retweet it with your most hilarious liquidation story.

Join discord, get verified, navigate to the #cloverfield-entrance, and post your tweet:
https://discord.com/invite/deusfinance

Cloverfield — Changelog & Account Overview Glossary:

After closed-alpha launch the Cloverfield team used the last month to start implementing the overall community feedback, and expects to launch a new upgrade of their Cloverfield engine & open a new round of whitelists in the following weeks.

This upgraded version should be considered a quantum leap regarding Trading Experience, efficiency, and overall UX.

We will slowly upgrade Cloverfield to work with real money as soon as this next version is stable.

Real money trading can be considered as the mainnet launch of Cloverfield.

Cloverfield will start to generate fees for xDEUS holders as soon as upgraded to real money trading.

dSynths is currently already generating fees for xDEUS holders.

Hedger
The hedger team (4 people) led by pm001 worked on

  • refactoring and laying the groundwork for improving order UX, especially market orders, the processes marked in red:
  • Started working on better counterparty monitoring to display more data on the front end for users.
  • Removed some technologies like celery and added more threads to the process.
  • Improved logging and monitoring for better internal insights and communication with front-end users.

Contracts
The contract team (3 people) led by Moon Knight

worked on these changes:
1. Add separated functions to handle market orders to make UX smoother (mainly some checks have been changed for market orders)

2. Added a deadline to orders and the ability for them to expire.

3. Modified oracle signature scheme to prevent overloading on muon.

Side note:
in Cloverfield, all hedgers are isolated between each user. Basically every hedger opens a new sub-account when he trades with a new user.
This is done to reduce contagion of bad debt that could spread between hedgers.

Every Hedger (H1 or H2…Hn) has an isolated “instance,” a so-called Sub-Account, and he only shares cross margin with one user at a time.

4. We implemented functions to let Hedgers move the margin between those isolated “sub-accounts.”

Frontend
The Frontend team (3 people) led by Malijss

Malijss joined the Frontend team at the end of January as the new Lead-dev and immediately started to refactor the frontend from scratch leading to an overall performance increase and faster feedback loops in the near future.

Meanwhile, HajiSon & CNA worked on adding multiple new features:

Consistency in Color scheme

We changed the background colors to match across the whole app.

New markets overview section

CNA (design-lead of Cloverfield) started working on a markets overview section to navigate more quickly through the v3 markets by being able to sort them by volume / marketcap / price changes.

New “Favorite tickers bar.”

We added a “favorite bar” you can now select your favorite ticker to be shown up there; this shall help you navigate your open trades more efficiently.

Account overview — overhaul:

We will also revamp the account overview section to make it easier for traders to understand the current health of their margin account.

One important note in Cloverfield is that your whole account balance is used for settling your PnL.

Account overview Glossary

Allocated Balance

  • The allocated Balance is the amount the user allocated to this specific Margin Sub-Account; it can be used to open margin positions or can be deallocated to your Main Account and withdrawn after a pre-determined Fraud Proof window.
    During the Fraud proof window, 3rd party sanity checkers can make sure that the balance that was won and tried to be withdrawn is correct and can be withdrawn.

Initial & Locked margin

  • Initial Margin also adds Margin to your Locked Margin balance. Locked Margin is the aggregated Margin across all your open positions. Locked Margin is still counted as Equity; it is a protective measure to ensure users cannot open unlimited positions.

Available for Orders

  • Account Balance that is still available for Requests and Orders.

Available for Orders

= Equity Balance minus Locked Margin minus Maintenance Margin

Maintenance Margin

  • Maintenance Margin (CVA) this amount is your “Security deposit.”
    If your equity balance (account balance + uPnl) reaches this amount, you will be liquidated. Maintenance Margin is locked, immovable & aggregated across all open positions.

Equity Balance

It's your allocated account Balance and your unrealized PnL added; your Equity Balance is your unrealized future balance; if it reaches the amount you have locked as Maintenance Margin, you get liquidated.

When you close your trades and settle your PnL, your account balance will equal your equity Balance minus fees.

Equity Balance

= allocated Balance plus unrealized PnL

Account Health

Your account health is a percentage factor that defines how healthy your position is; when your Equity Balance reaches your Maintenance Margin, you will be liquidated.

The formula to calculate your Account Health is

(EquityBalance minus MaintenanceMargin ) divided by your EquityBalance

Quick Margin Example:

User A allocates $495 to his subaccount (User A.1)

User A then opens a $2000 BTC Long with 10x Leverage.
The initial margin for this position will be $200

Initial Margin
= 93% Locked Margin plus 7% Maintenance Margin.

The Maintenance Margin added to his total CVA will be $200*0.20 = $40.
The Margin added to his Locked Margin will be $200*0.8 = $160.
The platform fee subtracted from his allocated Balance is $2.

After opening, the remaining (User A.1) Allocated Balance is now $493.

Fast forward, BTC price declined & his (User A.1) Account-wide uPnL is -50.

His remaining Equity Balance is $443

He has $243 remaining available to open new positions.

He now opens a $2000 10x ETH long
His Initial Margin for this position is $200
His Maintenance Margin for this position is $200*0.07 = $14, the Locked Margin for this position is $200*0.93 = $186

The total Maintenance Margin of his BTC & his ETH position is now 14+14 = $28.

The Total Locked Margin of his BTC & ETH position is now 186 + 186 = $372.

The remaining Available for Orders is $43.

His new Account Health is 93.68%
Opening more positions adds more margin to his Locked Margin but don't affect Account Health nor his Equity Balance.

ETH and BTC decline more, and his total uPnL drops to -200

His Equity Balance has been reduced to $293, and his new Account Health is 90.44%

As soon as his Equity Balance reaches the amount of his Maintenance Margin of $28, he will be liquidated.

Order simplicity

We worked on designing a new “Order-Box” where you can select the amount of Initial Margin you are willing to lock for this trade. This will make it easier for users to select the right amount to allocate to a specific trade.

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