Deri Protocol Docs
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  • Genesis
    • Getting Started
  • 📈Trading [Guide]
    • Deri Lite
      • Perpetual Futures
      • Everlasting Options
      • Power Perpetuals
    • Deri Pro
      • Perpetual Futures
      • Everlasting Options
      • Power Perpetuals
      • Gamma Swap
    • Arbitrage
  • đŸ“ļMining [Guide]
    • AMM Liquidity Mining
    • DERI Liquidity Mining
  • How it works
    • Architecture
    • DPMM (Proactive Market Making)
    • Oracle
    • External Custody
    • Funding Fee
    • Leverage
    • Margin Requirement
    • Open Interest
    • Liquidation
    • Mining (AMM Liquidity Mining)
    • Limit Orders and Stop Orders
  • Governance
    • Deri Improvement Proposal (DIP)
  • Library
    • Derivative Products
    • Whitepaper
    • Code Audits
    • Tokenomics
    • List of Smart Contracts
    • Referral Program
    • Social Links & Media
    • Bridge
    • Trade on Demo Testnet
    • Academy
      • General
        • What are derivatives in DeFi?
        • What are the 3 biggest mistakes of trading derivatives?
        • Four tips for your trading
      • Perpetual Futures
        • General Intro about Perpetual Futures
        • How to Arbitrage
      • Everlasting Options
        • Introducing EverLasting Options
        • Numerical Examples of Everlasting Option Pricing
      • Power Perpetuals
        • Introducing Power Perpetuals
        • Hedging Impermanent Loss with Power Perpetuals (1)
        • Hedging Impermanent Loss with Power Perpetuals (2)
      • Gamma Swap
        • Introducing Gamma Swap
        • Gamma Swap by Deri Protocol
        • Hedging Impermanent Loss with Gamma Swap
        • A New Transaction Fee Algorithm for Gamma Swap
    • Glossary
    • â„šī¸FAQs
      • Trading FAQ
        • Perpetual Futures
        • Everlasting Options
      • Mining FAQ
      • Mini-App FAQ
  • DEVELOPERS
    • How to find the Token ID associated with your account
    • Ideas to build
  • Support
    • Submit a question
    • Bug Report & Suggestions
    • Brand Asset
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  1. How it works

Leverage

Overview

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

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Last updated 3 years ago

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