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What is Leverage?

Leverage allows you to open positions larger than your account balance. This works by borrowing funds to increase your buying power.
When trading with 10x leverage, a 1% market move translates to a 10% change in your position value, both in profit or loss.
The maximum leverage depends on the token, with a maximum of 40x.
Higher leverage can magnify gains but also significantly increase risk.
Use it responsibly and monitor your margin levels closely.

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What is Margin?

Margin is the collateral you deposit to open and maintain a leveraged position. It determines how much risk you can take on and acts as a safety buffer to prevent liquidation. There are 2 margin modes for perpetual trading:
  • Cross Margin
All available funds in your Perps account are shared across all open positions.
If one trade performs poorly, it can affect your entire account balance.
Best for: Advanced users managing multiple positions and actively balancing risk across trades.
  • Isolated Margin
Only margin allocated to a specific trade is at risk.
Losses are contained to that position, without impacting the rest of your balance.
Best for: Beginners or traders who want to limit risk to a single position.

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Liquidation risk

A position is liquidated when your margin balance becomes too low to support your open trade, usually due to adverse price movements.
HyperETH automatically closes the position to prevent further losses.
Leverage increases the chance of liquidation, especially during volatile markets. Tips on how to manage liquidation risk:
  1. Regularly monitor margin utilization
  2. Set stop-loss orders to limit downside risk

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Switching between margin modes

Users can choose to switch between margin modes by entering the margin menu. Frame 1801285961.png Select either of the margin modes in the menu. Frame 1801285962.png