Leverage

In AMOK, traders can use leverage through the backing of positions with a margin that is worth up to 10x less than the total position size. The ceiling at which a trader’s position can be liquidated is at a 16x leverage. Please learn about leveraged trading before using it in AMOK trades, as your funds can be at risk of liquidation any time.

Here is why:

Let’s assume you open an AVAX long position worth 5,000 USDC backed by a margin of 500 USDC. In this case, your margin is 10%. If AVAX’ price goes down, your margin ratio will go down, as PnL is added to the 100 USDC margin. If the ratio falls to 6.26 (or 16x leverage), the position could be liquidated