Leverage Buying

Leverage Buying: No Liquidation on Price

Borrow to amplify your exposure to price increases. There is no liquidation on price: a position is never closed out because the market moved against it. Positions end on time-based expiry instead. Leverage settles in one transaction.

• Stable+: 37x leverage is available to all traders at launch and at any time.
• Floor+: up to 37x. The constraint is the spot/floor ratio described below.

How it works:

• Leverage is always maximized based on the difference between the floor price and the spot price of the token.
• The highest leverage is available when the spot price is equal to the floor price.
• Leverage decreases as the difference between the spot price and floor price increases.
  • Stable+: spot price is always equal to the floor price, so the highest leverage is always available.
  • Floor+: the highest leverage is available at launch, and the leverage available decreases as the spot price rises above the floor price.

Costs (from the Robinhood Chain launch): borrowing 2% plus 0.005% a day, normal trade fees on the buys inside the position, and 3% of the profit above what you put in when you close. See Transaction Fees.