Leverage Mechanism

Perpetual agreements allow traders to use leverage by using margin (collateral smaller than the total position size) to support the position. Traders can use up to 10 times leverage to open positions.

Please note that the maximum effective leverage before the start of the clearing mechanism is 16 times, which is equivalent to a margin ratio of 6.25%.

⚠️Use leverage to keep your funds at risk of liquidation at any time. Before proceeding with real trading, please make sure that you understand the risks of leveraged trading

For example: You can open a long position in BNB with a value of 1000 USDT and provide a margin of 100 USDT. At this time, your margin rate is 10%, which is equivalent to 10 times leverage. If BNB depreciates, you will start to lose money, resulting in a negative unrealized profit and loss (PnL). Unrealized profit and loss has been added to your margin, so in our example, your margin will become less than 100 USDT, which reduces the margin ratio. If the margin ratio drops to 6.25%, your position may be liquidated.