Short/Long Mismatch Modifier

The Short/Long Mismatch Modifier is a multiplier on your borrow_rate that is set on creation of your Position to incentivize trading in such a way as to balance out the shorts and longs in a Custody. The math behind it is simple. First, the ratio is decided:

let ratio = if longed > shorted {
    longed/shorted
} else if shorted > longed {
    shorted/longed
} else {
    1
};

Let's make this concrete and say longs are 10 and shorts are 5 and you are going short. Ratio is 2. In this case, you'd then get a modifier of 1/2, a 50% discount in borrowing fees!

Alternatively, if you are long in that case, you are going to be paying 2x the normal borrowing fees. This creates a large disincentive to go long, and a huge incentive to go short.