> For the complete documentation index, see [llms.txt](https://current-finance.gitbook.io/current/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://current-finance.gitbook.io/current/product/margin/how-does-it-work.md).

# How Does it Work?

Margin Trade allows users to long/short specific pairs, such as SUI/USDC, ETH/USDC, and WBTC/ETH with leverage. When Net APY is positive, the user’s deposit interest exceeds their borrowing interest, so the user does not need to pay any fees for the position.

Example:

```
// A user has 5 SUI and chooses to short SUI/USDC(3X Leverage)
```

Let's say:

`1SUI=2USDC and No price slippage`

`For User:`

  `User Final Position:`

* `Supply=30USDC`
* `Borrow=10SUI`
* `Net Value=$10` 

Notes:If the supply interest on 30 USDC exceeds the borrow interest on 10 SUI (i.e., Net APY > 0), the user will earn interest.

`For Market:`

| State  | Asset | Supply | Borrow | Utilization ratio |
| ------ | ----- | -----: | -----: | ----------------: |
| Before | SUI   |    100 |     30 |               30% |
| Before | USDC  |    100 |     40 |               40% |
| After  | SUI   |    100 |     40 |               40% |
| After  | USDC  |    130 |     40 |            30.77% |

* Market Total Supply:$300 to $330
* Market Total Borrow:$100 to $120