Leverage
Deri Protocol enables traders to benefit from leverage (up to 12.5x on BNB Chain & 25x on Arbitrum) by covering a position with margin usage that is worth less than the total size of the position.
The use of leverage, depending on the degree of leverage, significantly affects your margin usage, has an impact on your margin requirement, and can greatly increase the possibility of liquidation. Therefore, traders should be aware of how leverage works, including its functioning and risks of losing or being liquidated.
You can prevent your account/position from falling below the Maintenance Margin requirement and being liquidated by depositing sufficient margin to your position(s) to maintain the margin requirement
For more details, please read the margin requirement & Leverage article: Margin Requirement & Leverage
The enormous degree of leverage can work in favor of you as well as against you. Before making the decision to invest using Deri Protocol, you should carefully consider your level of experience, investment objectives and risk appetite
Last modified 1yr ago