> For the complete documentation index, see [llms.txt](https://docs.boba.xyz/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.boba.xyz/perpetuals/leverage-and-margin.md).

# Leverage and Margin

## Leverage

Leverage multiplies your buying power. With 10x leverage:

* $100 of margin controls $1,000 of exposure
* Gains are amplified 10x
* Losses are also amplified 10x

***

## Margin

Margin is the collateral you provide to open a position.

#### Initial Margin

Amount required to open position.

#### Maintenance Margin 

The minimum amount required to keep the position open. If your margin falls below this, liquidation occurs. Users can optionally add margin to open positions before this occurs. 

***

## Liquidation

Liquidation occurs when losses approach your margin:

* Position is automatically closed
* Remaining margin is used to cover losses
* You may lose your entire margin

{% hint style="danger" %}
Warning: Higher leverage = higher liquidation risk. A 50x position can be liquidated by a very small price move against you.
{% endhint %}


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