Portfolio

What to monitor when opening a Leverage Position?

⚡️Position

Value: Total Value of your collateral + Leverage amount

Leverage: Chosen Leverage

Leverage APY: Total APY after leverage

Liquidation

Health Factor: Calculated by comparing your adjusted collateral value to your leverage amount. The higher the ratio, the safer is your position. To keep your position healthy, you can either add more collateral or repay some of your borrowed amount.

Liquidation Buffer: The safety margin between your current price (mark price) and the liquidation price, protecting against market movements.

Current Price (mark price): The present value of you leveraged asset denominated in the collateral asset, shows how many units of debt asset you can get for one unit of collateral asset (i.e in the cae of iSEI/USDT is the dollar value of iSEI, for wSEI/iSEI is the iSEI value of your wSEI).

Liquidation Price: The collateral price that would trigger liquidation, based on your borrowed amount When this price drops below your liquidation price, your position becomes eligible for liquidation.

Liq. Threshold: The danger point where your position risks liquidation, always higher than your LTV.

Loan To Value (LTV) : Maximum percentage you can borrow against your collateral, like a credit limit.

How to Manage your Leverage Position?

• Increase collateral: Reduce Liquidation risk by increasing the collateral assets and reducing the LTV

• Remove collateral: Can be seen as a ”take profit” when the price of the collateral increased against the leveraged asset. Meaning that less collateral is needed to maintain the same USD value of the position.

• Close position: Repay the leverage debt and return your collateral