Limitations

To ensure a balanced and fair trading and investing experience, LeverageX operates with the following limitations:

1. Maximum Profit and Loss (P&L)

   1. A cap of 400% P&L is currently in place.

2. Minimum Position Size

   1. The minimum position size for trades is set at $150.

3. Fees on the Earn/Investor Side

   1. A 1% fee is applied when entering or exiting the Earn side.

   2. This fee is converted into JAV tokens and subsequently burned.

4. Sale Restrictions on the Earn Side

   1. Sales on the Earn side are currently disabled until mid-March 2025.

5. Controlled Access to the Earn Side

   1. Deposits into the Earn side may be temporarily halted to ensure consistent returns on invested capital.

6. Minimum Trade Duration

   1. A Minimum Trade Duration has been implemented, specifically impacting scalp trading and short-term strategies.

      1. 3-minute minimum for standard trades below $5,000 position size

      2. 10-minute minimum for trades between $5,000 - $50,000 position size

      3. 15-minute minimum for trades above $50,000 position size

   This means scalp trades and other positions cannot be closed before the set duration based on their size. During this time you can't edit SL, TP or position size. Click here for more information.

7. Open Interest (OI)

   1. As a margin trading protocol where traders borrow leverage from liquidity providers, it’s critical to implement a system that fairly distributes available liquidity across different asset classes like stocks, crypto, forex, and commodities. To achieve this, we use a tiered Open Interest (OI) framework:

      1. First, the maximum Open Interest (Max OI) is set to a percentage of the total TVL across all market-making vaults. This ensures sufficient liquidity for trading while maintaining a buffer to support LP withdrawals.

      2. Next, this Max OI is allocated across different asset classes — such as stocks, crypto, forex, and commodities. Each asset class has a predefined OI allocation, which evolves based on market conditions and demand.

      3. Finally, within each asset class, individual trading pairs also have their own OI limits. These per-pair caps prevent a single asset from consuming all available OI within a group. They are primarily in place for risk control and user experience optimization. The sum of per-pair limits within a group doesn’t need to total the asset class’s full OI allocation, giving us flexibility in fine-tuning access and exposure.

   2. This system ensures scalable, sustainable access to leverage for traders while maintaining the integrity and health of the protocol.

These limitations are designed to maintain the platform’s sustainability, safeguard user returns, and uphold the integrity of the ecosystem.