Docs / Trading
Leverage and bust price
How far the price can move before a position loses its margin.
Leverage multiplies both directions. At 100× a 1% move doubles or wipes your margin; at 1000× it takes 0.1%.
Bust price
Every position has a bust price, fixed when it opens: entry × (1 − 1/leverage) for a long, entry × (1 + 1/leverage) for a short. If the mid touches it, the position closes and the full margin settles to the Kiln. You can never lose more than the margin you posted.
- 10× long from 100,000 busts at 90,000
- 100× long from 100,000 busts at 99,000
- 1000× long from 100,000 busts at 99,900
Choosing leverage
The terminal shows the move to bust as a percentage before you open. Above 250× it also warns you. Size your margin so that a bust is a loss you can accept.