Leverage Buying

No price liquidation

A leveraged buy gets you more of a token than your money alone would buy. Your money buys the first part, and the rest is bought with money borrowed against those tokens. It settles in one transaction: you sign once and get one position.

There is no price liquidation: a position is never closed because the market moved against it. Positions end on time-based expiry instead.

How Much Leverage

• Stable+ and Predict+: Up to about 37x leverage, at launch and later, because the floor price always equals the spot price. How much you get depends on the token and the size of the buy.
• Floor+: up to about 37x. Leverage is highest at launch and eases as the spot price rises above the floor price.

Borrowing is at 100% of the floor value of the tokens bought, so the gap between the spot price and the floor price is what limits leverage. The multiple on a given trade also depends on the loan term, the token's fees and the size of the buy (a large buy moves the price and gets less). The buy form shows your exact multiple, position and costs before you sign.

• A leveraged buy must give more than twice the tokens of a plain buy, or it does not go through.
• Pick your leverage with the slider: from the lowest level that clears 2x up to the most the token and the buy size allow (about 37x at best). The whole amount goes into one position.

Costs

• Trading fee: the token's full trade fee on everything the position buys. Leveraged buys get no referral discount.
• Borrowing fee: currently 2% plus 0.005% per day of the term, on everything borrowed. It covers the whole term, so nothing accrues later. Part of it is paid when you open and part is added to your debt, so you owe more than you borrowed.
• Closing: closing a position at a profit pays 3% of the profit above what you put in. Repaying is free.
• Extending: 0.005% per extra day.

Managing a Position

• A position runs for 10 to 1,000 days. If it is not repaid or extended by its end date, a keeper closes it like an unpaid loan: the tokens that cover the debt are taken to repay it, 10% of the rest is the liquidation fee, and you claim the remainder. Claim within 365 days of the liquidation; after that the leftover may no longer be claimable.
• Repay any part of the debt, or all of it, at any time.
• One position per token: a second leveraged buy adds to it and keeps its end date (extend first if fewer than 10 days are left).
• Leveraged tokens are held by the protocol until the position closes (shown as "Open positions") and cannot be used as loan collateral: leverage and loans are separate paths.