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Leverage

Borrowing to amplify trading positions and potential returns.

Trading
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What is Leverage?

Leverage means using borrowed funds to increase your position size beyond your capital. 2x leverage means controlling $200 with $100.

In DeFi

  • Lending loops: Deposit, borrow, deposit again
  • Perps: Trade with leverage on GMX, dYdX
  • Margin: Borrow against collateral

Risks

  • Amplified losses
  • Liquidation risk
  • Funding costs

Theory meets practice. See current rates across DeFi.

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