Leverage

Leverage & Margin

Zygo supports leveraged trading. To use leverage, you post USDC as collateral (“margin”). With margin in place, you can take exposure larger than your wallet balance.

Formula

Position Size (notional) = Margin × Leverage

• Margin: USDC you commit as collateral for the trade.

• Leverage: the multiplier you choose. Exact bounds vary by market; check the UI.

Important: PnL is calculated on the position notional, so small price moves can create outsized gains or losses relative to your margin.

Examples (fees, funding, and price impact excluded)

Example 1 (ETH)

• Price: ETH = $4,000

• Margin: $200 USDC

• Leverage: 10× → Position Size: $2,000

• If price rises +5% → notional ≈ $2,100 → PnL = +$100 (+50% on margin)

• If price falls −5% → notional ≈ $1,900 → PnL = −$100 (−50% on margin)

Example 2 (BTC)

• Price: BTC = $120,000

• Margin: $7,000 USDC

• Leverage: 100× → Position Size: $700,000

• If price rises +1% → notional ≈ $707,000 → PnL = +$7,000 (+100% on margin)

• If price falls −1% → notional ≈ $693,000 → PnL = −$7,000 (−100% on margin)

Risk notes

• Liquidation: If account value (margin ± unrealized PnL) drops below maintenance margin, positions may liquidate. Higher leverage shortens the distance to liquidation.

• Mark/index price: PnL and liquidation are typically based on the index price from Zygo’s oracle, which can differ from any single exchange’s last trade.