What Are Amps?
Understanding amplification levels and how they affect your trades.
Definition
Amplification is expressed in amps. This is the amount the platform contributes towards your trade relative to your own contribution.
Amplification Range
Amps operate within a 2x to 10x range on this platform.
Higher Amplification Effects
Increasing amp settings results in:
- Greater platform participation - More capital contributed by the platform
- Multiplied price fluctuations - Price movements are amplified proportionally
- Tighter liquidation threshold - Reduced tolerance for price drops before liquidation occurs
Example at 10x
A 10% price drop could trigger liquidation, but a 10% price increase would yield significant returns.
Lower Amplification Effects
Reducing amp settings results in:
- Decreased platform involvement - Less borrowed capital
- Scaled price movements - Price movements have less amplified effect
- Larger cushion - More room for downward price movement before triggering liquidation
Example at 2x
You have more buffer room for price volatility, but gains are also more modest.
Choosing Your Amplification Level
Consider these factors when selecting your amp level:
| Factor | Higher Amps (10x) | Lower Amps (2x) |
|---|---|---|
| Potential gains | Higher | Lower |
| Risk of liquidation | Higher | Lower |
| Price buffer | Smaller | Larger |
| Best for | High conviction trades | Volatile markets |