Boros Update: Position Value is now Rate Sensitivity
We’re making a major change to how positions are presented on Boros so funding rates trading can become much more intuitive and easy..
TL;DR
- Position Value and Leverage are removed, replaced by Rate Sensitivity and Daily Volatility
- All open positions and orders are unaffected. Only the display is changing.
- Rate Sensitivity is the P&L impact of a ±1% move in Implied APR, following the same logic as DV01 in TradFi interest rate swaps, scaled to 1% instead of 1 basis point (i.e. 100 x DV01)
- Daily Volatility is the 7DMA of the market’s Implied APR range
We’re making a major change to how positions are presented on Boros so funding rates trading can become much more intuitive and easy..
Position Value and Leverage on Boros will be replaced by Rate Sensitivity and Daily Volatility.
Issues with Position Value
Unlike token prices which bottom out at $0, Funding Rates operate differently since there’s no price floor.
At 0.5% Implied APR, Position Value may seem deceptively small, but the reality is that it could crash to -100%, -300% or even beyond.
At 0% Implied APR, Position Value becomes $0. When the rate flips negative, so does Position Value.
All of these make it impossible to meaningfully gauge your exposure, creating a confusing and misleading display that obscures the true downside risk and the margin required to hold the position.
Issues with Leverage
Leverage was calculated against Position Value, so it moved with the rate rather than reflecting actual risk.
Take the same position at different Implied APRs:
- At 0.43%: 0.2x leverage, which reads as nearly risk-free
- At 6%: 3x leverage, implying the position has become 15x riskier just because the rate went up
- At 0%: 0x leverage, despite requiring margin to open a position at 0% or negative Implied APRs
New Display — Rate Sensitivity & Daily Volatility
By adopting Rate Sensitivity and Daily Volatility, the same correct convention used by TradFi swap desks, we can solve all the issues.
Rate Sensitivity and Daily Volatility solve this.
Rate Sensitivity: P&L impact of a ±1% move in Implied APR , following the same logic as DV01, scaled to 1% instead of 1 basis point (i.e. 100 x DV01)
At any Implied APR, positive or negative, Rate Sensitivity gives you a clear and consistent dollar figure for what a 1% move costs or earns you.
For instance, if your Rate Sensitivity is $1,570 and your margin is $7,200, you can immediately deduce that you can absorb ~4.6% of adverse rate movement before liquidation.
Daily Volatility: The 7DMA of the market’s Implied APR
This gives you a barometer of how much the rate has been swinging day to day. Cross-referencing Daily Volatility against your liquidation buffer tells you at a glance how much runway you have. If Daily Volatility is running at 5% and your buffer is only 4.6%, your position is at elevated risk and likely warrants a margin top-up.
For Users with Existing Positions
Nothing’s changed under the hood, no actions required.
All that’s different is how we’re presenting positions, to help you trade rates with more ease and clarity.
Any positions/orders currently open will be unaffected by the change from Position Value to Rate Sensitivity.
For Builders on Boros:
If you build on top of Boros data (dashboards, reports, bots, analytics) and reference Position Value or leverage from the API, we will be updating all our API / MCP / SDK to reflect this change as well.
Conclusion
When we first built Boros, we presented positions in familiar terms to make the platform feel approachable for traders coming from perp exchanges.
But as Boros grew, it became clear that conventions built for price trading do not translate to rate trading. Funding rates behave differently from asset prices, and the tools used to measure them should reflect that.
Rate Sensitivity and Daily Volatility are the conventions TradFi swap desks have used for decades to size and monitor interest rate positions. Adopting them sets Boros on the right foundation to make it more intuitive for all users, and immediately familiar to the institutions and TradFi participants we are building towards.
To learn more about Rate Sensitivity and Daily Volatility, please visit our Docs and Academy.