Example Trade
Let's walk through an example trade with 5x amplification to understand how the system works.
Capital Structure
With 5x amplification:
| Component | Amount |
|---|---|
| User contribution | 0.5 SOL |
| Platform contribution | 2.0 SOL |
| Combined position | 2.5 SOL |
Trade Outcomes
Profit Scenario
When your trade is profitable:
- The platform's amplified funds are returned first
- You receive remaining gains minus applicable fees
- Your original capital plus profits are available for withdrawal
Loss Scenario
When your trade results in a loss:
- Platform capital is recovered first
- Fees are taken
- You retain whatever remains from your initial stake
- Your loss is limited to your original contribution
Liquidation Scenario
When the price hits the pre-defined liquidation threshold:
- The platform recovers its amplified portion
- You forfeit your original capital completely
- No exit fees are charged on liquidation
Key Takeaway
This mechanism allows traders to control larger positions using borrowed capital from the platform, with consequences escalating from fee deduction through complete capital loss depending on trade outcomes. The maximum you can lose is your initial contribution - you will never owe additional funds.