The current maximum leverage of the system (BTC/BUSD, ETH/BUSD) is 10X, and the proposal aims to adjust it to 30X
Pro
- The APY of position mining will increase by 3 times
- Capital efficiency goes up. The same margin can support more positions, and it is easier to increase the system position volume and trading volume
Con
- High-leverage users are more likely to trigger liquidation. The margin rate of 30X leverage is 3.33%. When the margin rate reaches 3%, it will trigger automatic deleveraging. Advanced position management capability is mandatory
- System risk control is more challenging. Big market fluctuations can trigger serial liquidation, resulting in system net loss, insurance pool depletion and even bond issuance