Leverage
DeFi
Use of borrowed funds to amplify exposure and returns.
Leverage lets you borrow to increase position size. It multiplies gains and losses and adds liquidation risk. Start small and learn the mechanics before using real funds.
Frequently asked questions
How does leverage increase risk?
Losses are magnified and liquidations can happen quickly if prices move against you.What should I monitor?
Collateral value, funding rates, and liquidation price. Set alerts and know your exit plan.Is high leverage ever safe?
It is risky. Beginners should avoid it. If used, keep size tiny and test on paper first.