Leverage & Margin
Leverage lets a smaller collateral amount control a larger position. It increases both potential gains and potential losses, while bringing the liquidation threshold closer as leverage rises.
How Leverage Works
Position Size = Collateral × Leverage
| Collateral | Leverage | Position Size |
|---|---|---|
| 30 | 2x | 60 |
| 30 | 3x | 90 |
| 30 | 5x | 150 |
Market Limits
Maximum leverage, minimum collateral and size limits can differ by network and market. Treat the trading interface as the current source of truth before signing. A product limit is separate from available liquidity and on-chain safety checks.
Margin and Liquidation
Your collateral is the margin backing the trade. Higher leverage leaves less room for an adverse price move before liquidation. Adding or removing collateral can change the position’s effective leverage and liquidation price.
Risk Reminder
Leverage magnifies losses as well as gains. Always review the liquidation price, fees and available Vault capacity before confirming a trade.