From 50e8cca25bb7dc4bf0ff1c266ae3ad30b2535998 Mon Sep 17 00:00:00 2001
From: "dr. mia von steinkirch, phd"
 <1130416+mvonsteinkirch@users.noreply.github.com>
Date: Wed, 8 Feb 2023 15:27:05 -0800
Subject: [PATCH] Update glp_vaults.md

---
 MEV_by_chains/MEV_on_Arbitrum/gmx/glp_vaults.md | 12 +++++++++++-
 1 file changed, 11 insertions(+), 1 deletion(-)

diff --git a/MEV_by_chains/MEV_on_Arbitrum/gmx/glp_vaults.md b/MEV_by_chains/MEV_on_Arbitrum/gmx/glp_vaults.md
index 5a46a94..e355c64 100644
--- a/MEV_by_chains/MEV_on_Arbitrum/gmx/glp_vaults.md
+++ b/MEV_by_chains/MEV_on_Arbitrum/gmx/glp_vaults.md
@@ -13,9 +13,19 @@
 
 <br>
 
+### pool exposures
+
+<br>
+
+* the first component of a pool are the available assets, which are the vault assets minus reserved assets (assets set aside to cover longs).
+* by covering longs, a reserved $BTC that would move with $BTC is used to cover a long position by surrendering all the upside gains to the counterparty (but also taking all collaterals of the counterparty when the price of $BTC goes down).
+* conversely, a short against the pool becomes a synthetic long as its credit gains to the pool when the price goes up (but takes money from the pool when the price goes down).
+
+<br>
+
 ### resources
 
 <br>
 
-* [rage-gmx vaults](https://mirror.xyz/0x507c7777837B85EDe1e67f5A4554dDD7e58b1F87/KztyQ37Nfq7QT1BWrLz30jfqdtV23TtilJK1cbyXpxk0
+* [rage-gmx vaults](https://mirror.xyz/0x507c7777837B85EDe1e67f5A4554dDD7e58b1F87/KztyQ37Nfq7QT1BWrLz30jfqdtV23TtilJK1cbyXpxk0)
 * [sentiment.xyz](https://www.sentiment.xyz/)