Protocol

Leverage

Leverage lets you take a position larger than the money you put in. You supply a margin; the rest is backed by shared liquidity. When you're right, you win on the full position — so a correct call is amplified.

Margin, leverage, and borrowed size#

Every leveraged position is described by three numbers:

Margin

The USDC you put in yourself. This is your own capital at risk.

Leverage

A multiplier from 1x up to the current maximum (3x). It decides how much is borrowed.

Position size

margin × leverage — the full size your prediction rides on.

Borrowed

(leverage − 1) × margin — the amount backed by the shared liquidity pool.

A quick example

Put in $10 of margin at 3x. Your position is $30, of which $20 is backed by the pool. If your outcome wins, your result is based on the full $30 — not just your $10.

Leverage adapts to available liquidity#

Leverage is only offered when the pool can safely back it. Hedge keeps a 10% reserve buffer idle at all times, and the maximum leverage on offer steps down as the free liquidity is used up:

Free liquidity remaining	Max leverage offered
66% or more	3x
33% – 66%	1.5x
Below 33%	1x (no leverage)

Your own maximum is also capped so the borrowed amount fits inside the liquidity that's actually available. As open positions close, capital is released back to the pool and leverage recovers.

What this means for you#

More upside, more at stake. Leverage amplifies the outcome of a correct call — and increases how much of your margin is on the line if you're wrong.
Positions can be liquidated. If the price moves far enough against a leveraged position, it can be closed to protect the pool. Higher leverage means a closer liquidation level.
Keep it simple with 1x. Prefer no borrowing? Trade at 1x — a straightforward prediction with only your own funds.

Settlement is always trustless

However you size a position, the result is decided the same way: the market settles on-chain against TxLINE's verified proof, and winnings are paid from the market's vault. See the trustless contract.

The capital that makes leverage possible comes from liquidity providers — see Liquidity for how the pool works and stays solvent.