Maximum Loss
Understanding your risk exposure and loss limits when trading with Amplified.
Loss Limitation
The maximum loss is limited to the user's initial capital once trading begins.
This is a fundamental protection built into the platform.
Key Protections
No Additional Liability
Users never owe money and bear no responsibility for platform losses.
If the market moves against you rapidly and the platform's capital is affected beyond your contribution, you are not liable for the difference.
Your Risk is Capped
| Scenario | Your Maximum Loss |
|---|---|
| Normal close at loss | Partial capital (minus fees) |
| Liquidation | Full initial capital |
| Extreme market move | Full initial capital only |
What This Means
When you open an amplified position:
- You contribute your capital (e.g., 0.5 SOL)
- Platform adds amplification (e.g., 2.0 SOL at 5x)
- Your maximum risk = Your 0.5 SOL contribution
Even if the token goes to zero, you will only lose your initial 0.5 SOL. The platform absorbs any losses beyond that point.
Summary
Amplified trading carries risk, but that risk is clearly defined and capped. You can never lose more than what you put in, and you will never be asked to pay additional funds to cover platform losses.