1. Log into the Platform
Start by accessing the eBTC platform and ensure that you’re logged in with the correct wallet. This will allow you to interact with the platform and open your leverage position.
2. Navigate to the Leverage tab
Once logged in, head to the Leverage section where you can manage CDPs (Collateralized Debt Positions). This is where the leverage functionality is available.
3. Deposit your favorite form of ETH
Choose your preferred form of collateral. You can use stETH, ETH, wETH, or wstETH, but remember that there is a minimum deposit requirement of 2.21 stETH. Enter the amount of collateral you’d like to deposit. Once you input the amount, the interface will begin displaying the details of your leverage position.
4. Choose your Leverage Ratio
Use the slider to select your desired leverage ratio. You can go as low as 1.1x leverage or as high as 10x. Leverage magnifies your position, meaning that with a 5x leverage, your total exposure is five times your collateral. As you move the slider, key metrics will be updated in real time, including:
Total Collateral: The effective value of your collateral after applying leverage (e.g., 31.66895183 stETH).
Total Debt: The amount of eBTC borrowed against your collatera (e.g., 1.04204531 eBTC).
Final Collateralization Ratio (ICR): This shows the level of safety for your position based on collateral to debt ratio (e.g., 117.71%).
Liquidation Price: The price at which your position will be liquidated (e.g., 0.0362 stETH/BTC).
Final APR: The APR is the yield earned on your stETH collateral in the CDP, based on the total collateral and position size (e.g., 10.20%).
Gas Stipend: Amount of stETH reserved for transaction fees in case of liquidation, e.g., 0.2 stETH. If not used, it will be refunded upon closing the position.
Slippage Tolerance: The maximum allowable price deviation during swaps (e.g., 0.5%).
Estimated price impact: The estimated change in the market price due to the size of your leverage transaction.
Leverage fees: Displays the specific fees tied to the leveraged position, such as a convenience fee (e.g., 0.1%), flash loan fee (e.g., 0.03%), and swap fees. These fees for the moment are momentarily and might be turned off at the future.
Ensure that the leverage ratio aligns with your risk tolerance, as higher leverage increases both the potential for gains and risks of liquidation.
5. Open Leverage Position
Once you’re satisfied with the parameters, click Open Leverage Position to proceed. This action commits your collateral and activates the leverage position. The system will lock your stETH collateral, and the borrowed eBTC will be available for use.
6. Review and Confirm the Transaction
A final confirmation window will appear, summarizing your leverage position. This summary includes details like your collateral amount, total debt, slippage tolerance, price impact, and more. Review everything to ensure it aligns with your expectations. If all is correct, accept the Terms of Service and click Approve to complete the process.
7. Finalization
Once approved, the system will mint your leverage position, and the position will be live on the platform. You can now monitor your position under the Open Positions tab. Remember to keep an eye on market fluctuations, as leverage increases the risk of liquidation if the market moves unfavorably.
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Remember, always ensure you have a good understanding of the risks involved when working with Leverage.
❓ If you find yourself in need of additional assistance along your eBTC journey, feel free to explore our Support Help Center or directly contact us. We're here to address any questions or concerns you may encounter within the eBTC ecosystem. Just click the chat button at the bottom right-hand corner of the screen and send our support team a message.