🕹️Leverage

Leverage strategies are ways to gain increased exposure to an asset of your choice

• If you're bullish on an asset, you can Long it in order to amplify positive price changes

• If you're bearish on an asset, you can Short it in order to amplify negative price changes

The leverage decides the multiplicator of price changes, for example when your leverage is 5x, a 10% price change will be as if the asset changed 50%.

The higher the leverage, the riskier the strategy, because with high leverage even small price changes can have a large effect on your position and risk factor.

Still, XOXNO only allows leverages so that your risk factor does not go above 100% initially. So at the start of each Long/Short, your position is healthy, and only from then on price changes on the supplied/borrowed assets can bring you closer to or further away from Liquidation.

Read on to understand everything about Risk, Leverage, Long and Short on XOXNO!