Auto Take Profit
Auto Take Profit its available for Aave v3 on all networks, and Spark on Mainnet.
Why should I use Auto Take Profit over realizing profits manually?
Auto Take profit automation is much more hands off than realizing profits manually. The main benefit is that you can make your decisions about at what price and how much profit you want to realize well before it happens, and the automation will do it for you!
This is in stark contrast to the experience of having to constantly monitor the market, connect your wallet and sign transactions, and thats assuming you are close to your set up!
How does Auto Take Profit work?
Auto Take Profit works by monitoring the market price of your positions collateral relative to your *Minimum Realize Profit Starting Price (*the price you set to begin realizing profits) and it’s relative LTV.
Once that price or LTV is reached, our Smart Contract Automation executes a trigger and withdraws collateral from your vault and sends either the collateral or debt token to your wallet. The amount of which is determined by the Withdrawal Step you set, which is defaulted to 5%, but customizable.
After the starting LTV is triggered, your position will realize profits based on your Trigger LTV, while your withdrawal step remains the same. The Same Contract Automation then executes every time the your Trigger LTV is reached.
Why is my starting LTV different than my trigger LTV?
Your starting LTV is different because of your Minimum Realize Profit Starting Price. Giving you the ability to select the price at which you want to begin realizing profits and the customizability of being able set specific continuous auto take profit parameters that are not anchored to your original Minimum Realize Profit Starting Price requires the use of a second, continuous Trigger LTV.
Am I selling collateral when I take profit?
That’s up to you! Auto Take Profit automation gives you the choice to receive collateral or debt to your wallet upon a trigger. If you choose to receive collateral, there will be no selling. If you choose to receive the debt token (eg. USDC), your withdrawn collateral will be sold for the debt token.
Why do I have to have a Stop Loss or Trailing Stop Loss enabled to use auto take profit?
Using Auto Take Profit means that every time you realize profits, your position LTV will increase along side your Liquidation price. Mandatory Stop Loss or Trailing Stop Loss allows you to get the best of both worlds. Realize Profits when the price is going up, and protect your downside when the price is going down.
What are the risks associated with automation?
The main risks associated with automation are:
Failure to execute: In the case of Auto Take Profit, one of the risks is that the automation fails to execute. Leaving your positions profits at risk of not being realized.
Other Smart Contract bugs: As with all Smart Contracts, there is a risk of Smart Contract Bugs, though ours have gone though various audits.
Can I use Auto Take Profit with other automations (Auto Buy, Auto Sell)?
Yes! Auto Take Profit can be used in conjunction with other Summer.fi automations like Auto Sell and Auto Buy.
Where do orders execute if a swap is included in the automation?
Our automation Smart Contracts use 1inch to execute swaps.
How much does it cost?
There are two cost considerations with Auto Take Profit.
Gas Costs: It will cost gas to set up your Auto Take Profit automation, as well as execute any triggers that have been reached.
Withdrawal Automation Fee: Upon each Withdrawal a 0.2% fee will be charged on the total withdrawal amount.
Does my Auto Take Profit automation have to be recurring?
No! If you have realized your desired amount of profits and no longer want the automation to do so for you can simply disable it at anytime.
I’m having trouble setting up my Auto Take Profit, where can I get help?
If you are having trouble setting up your Auto Take Profit Automation, you can:
Watch this tutorial:
Read this blog post:
Ask a question in the support channel of our discord.
Email jordan@summer.fi for 1 on 1 onboarding session.
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