Summary
Understand how leverage works on Hype perps, how it affects gains and losses, and why higher leverage increases liquidation risk.
Leverage is the multiplier selected when opening a perps position. It lets you control a larger notional position than the amount of USDC collateral you put up.
For example, at 10x leverage, 100 USDC of collateral controls a 1,000 USDC position. The higher the leverage, the larger the position you can open with the same collateral.
Leverage works both ways. It increases potential gains and potential losses.
Example:
- You open a 1,000 USDC position with 100 USDC of collateral at 10x leverage.
- If the asset moves 5% in your favor, the position gains about 50 USDC.
- If the asset moves 5% against you, the position loses about 50 USDC.
That 5% market move equals 50% of the collateral because leverage magnifies the effect on margin.
Higher leverage also moves your liquidation price closer to the market price. At 40x leverage, a relatively small move against the position can wipe out the allocated margin. At 5x leverage, the position has more room to absorb price movement before liquidation.
Maximum leverage depends on the asset:
- BTC: up to 40x
- ETH: up to 25x
- SOL: up to 20x
- Most altcoins: up to 10x
Available leverage is selected in whole numbers.
FAQ
Does leverage increase both gains and losses?
Yes. The same multiplier applies in both directions.
Why does higher leverage increase liquidation risk?
Higher leverage uses less initial margin, so a smaller adverse price move can exhaust the margin.
Can I choose decimal leverage?
Leverage is selected in whole numbers where supported.
Related articles: Initial and Maintenance Margin, Liquidation on Perps, Risks of Perps Trading.
Legal Notice
Perpetuals ("Perps") are provided by third-party protocols and are not available to U.S. Persons (citizens, residents, or anyone located in the U.S.). Do not attempt to access perps from within the United States.
For purposes of these Terms, a "U.S. Person" means: (i) any natural person resident in the United States; (ii) any citizen or permanent resident of the United States, including any such person temporarily located outside the United States; (iii) any entity organized or incorporated under the laws of the United States or any state thereof; (iv) any estate of which any executor or administrator is a U.S. Person; (v) any trust of which any trustee is a U.S. Person; (vi) any agency or branch of a non-U.S. entity located in the United States; (vii) any discretionary or non-discretionary account held by a dealer or fiduciary organized, incorporated, or (if an individual) resident in the United States; or (viii) any entity organized or incorporated outside the United States that is formed by a U.S. Person principally for the purpose of investing in unregistered securities or derivative instruments. "United States" means the United States of America, its territories and possessions, any state of the United States, and the District of Columbia.
Representations and Warranties. By accessing or using Perps functionality, you represent and warrant that: (a) you are not a U.S. Person; (b) you are not accessing Perps from within the United States; (c) you are not accessing Perps on behalf of, or for the benefit of, any U.S. Person; (d) you will not use any VPN, proxy, anonymization service, location-spoofing technology, or other mechanism to conceal your location, misrepresent your residency, or circumvent geographic or eligibility restrictions applicable to Perps; and (e) you understand that these representations are material and that Hypeshot, Inc. is relying on them in providing you access to Perps functionality.
YOU ACKNOWLEDGE THAT PERPS TRADING CARRIES SUBSTANTIAL RISK OF LOSS. YOU HEREBY RELEASE AND HOLD HARMLESS HYPESHOT, INC. AND ITS AFFILIATES, REPRESENTATIVES, AGENTS, PERSONNEL, PARTNERS, LICENSORS, SERVICE PROVIDERS, OFFICERS, DIRECTORS, EMPLOYEES, AND CONTRACTORS (COLLECTIVELY, THE "COMPANY PARTIES") FROM ANY AND ALL LOSSES, DAMAGES, OR CLAIMS ARISING FROM OR IN CONNECTION WITH YOUR USE OF PERPS FUNCTIONALITY, INCLUDING BUT NOT LIMITED TO LOSSES FROM LIQUIDATION, LEVERAGE, MARKET MOVEMENTS, PROTOCOL FAILURES, OR THIRD-PARTY ACTIONS.