Mitigate Risk of Ordinals Position

Here's how you can use this to potentially profit when expecting a drop in an Ordinal's value:

  1. Purchase an Ordinal: Assume you buy an Ordinal for 0.25 Bitcoin.

  2. Take a Loan on Liquidium: Immediately after purchasing, you take out a loan of 0.23 Bitcoin against this Ordinal on Liquidium.

  3. If Price Falls: If the Ordinal's value drops below 0.23 Bitcoin, say to 0.21 Bitcoin, you can choose to not repay the loan and keep the borrowed money. You will lose your Ordinal in this process but you only lost 0.02 BTC (0.25 - 0.23 BTC) instead of 0.05 BTC (0.25 - 0.21 BTC).

If the price stays the same or goes up in value you repay the loan as usual to keep your Ordinal.

This strategy aims to secure a profit from a falling price while keeping the Ordinal. However, it's important to consider the risks, such as the price not falling as expected or fluctuating market conditions.

Disclaimer: This article does not constitute financial advice, and we strongly recommend conducting your own research and consulting with a professional financial advisor before making any investment decisions. We are not liable for any potential losses incurred from applying the strategies discussed. Proceed with caution and at your own risk.

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