Leverage and liquidation
Leverage lets you open a position larger than the money you put behind it. It multiplies gains and losses by the same amount, and if the loss grows large enough the exchange closes the position. That closing is called liquidation.
Updated 2026-11-08
What leverage does
Leverage is the size of a position divided by the margin behind it. With 10x leverage, $1,000 of margin controls a $10,000 position. A 1% price move then changes the value of the position by about 10% of the margin.
Each market on Hyperverve has its own maximum leverage. A higher number is not an advantage: it only means a smaller move against you is enough to lose the margin.
Cross and isolated margin
| Mode | Margin | What it means for risk |
|---|---|---|
| Cross | Your free hUSDC backs all your cross positions together. | A loss on one position can use margin that was backing another. |
| Isolated | Each position has its own margin. | The most one position can lose is its own margin, and you can add margin to it. |
What liquidation is
Every position needs a minimum amount of margin to stay open. When losses reduce your margin below that level, the exchange closes some or all of the position. The price at which this happens is the liquidation price, and a position shows it.
The liquidation price moves when you change the leverage, add or remove margin, or when funding is paid. Check it after each change.
Habits that limit downside
- Use less leverage than the maximum. A wider gap to the liquidation price gives a position room to move.
- Size each position as money you can lose in full.
- Prefer isolated margin when you want one position's loss to stay within its own margin.
- Use a stop loss or a reduce-only order to close a position at a level you chose, and remember that in a fast market an order can fill past its trigger price.
- Watch funding on positions you hold for days.
On Verve
Hyperverve shows each position's leverage, margin mode and liquidation price. Copilot can prepare orders at the leverage you state; it never picks a leverage for you. Leveraged trading involves substantial risk, including the loss of all the margin on a position. Nothing here is financial advice.
Does higher leverage mean higher profit?
It means a larger position for the same margin, so gains and losses are both larger. It also moves the liquidation price closer to the entry price.
What is the difference between cross and isolated margin?
In cross mode your free balance backs all cross positions together. In isolated mode each position has its own margin and can lose no more than that margin.
Can I avoid liquidation?
You can lower the risk with less leverage, more margin and a stop loss, but a fast market can still move through a stop price. Nothing removes the risk.