Leverage
Strips Exchange allows traders to use up to 10x leverage! Strips Exchange gives you the ability to super-charge your returns.
Strips Exchange allows traders to open positions with 10x leverage. When a position's margin ratio falls below 5%, based on estimated slippage and exit price, the position will be liquidated by the auto-liquidation engine.
⚠️ Using leverage puts your position at risk of being liquidated if the margin ratio falls below 5%. Be sure you understand the risks of leveraged trading before proceeding.
Example
You can open a long 10,000 AAVE-USDC-deposit interest swap position using 10x leverage with as little as 1,000 USDC in capital. If the interest rate on the AAVE-USDC deposit rate drops, your position will result in a negative PnL. If the total unrealised PnL exceeds 500 USDC, your margin ratio will fall below 5%. If your margin ratio falls below 5%, your position may be liquidated.

Collateral

Currently, Strips accepts USDC as collateral to open new positions. We may introduce other assets as collateral based on community feedback. You can add/remove collateral to existing positions. Note that if the position margin ratio falls below 5% your position may be liquidated.

Fair Price Marking

Strips finance uses a unique mark price for the calculation of unrealised pnl and liquidations. A position's mark price is the impact price where we take into account the price impact of the position if it were to be liquidated in this instant. Strips uses this mark price to determine if an account should be liquidated.
Copy link
On this page
Collateral
Fair Price Marking