Leverage, Liquidation Cascades, and Risk

This lesson is for enrolled learners

The concept Leverage appears across every instrument in this course — lending loops (Module 3), perpetual futures (this module) — and in every case, risk compounds nonlinearly, not linearly, as leverage increases. Doubling leverage doesn't double your risk; it shrinks your distance to liquidation by much more than half, because the relationship between leverage and liquidation-triggering price move is inverse……

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