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. Access your position
Navigate to the Open Positions section where all your active positions are listed. Select the position you want to manage and click the Manage button. This will open up the management menu where you can choose between adjusting your position or deleveraging.
3.1 Adjust your Position (Adding Collateral with Leverage)
Adjusting your position refers to the process of modifying your leverage by adding collateral or increasing exposure using a flashloan. This feature allows you to manage your risk by either strengthening your position with more collateral or increasing your leverage for greater potential returns.
When adjusting your position, you are not just adding collateral like in a normal position. Instead, by using the slider, you are also adding leverage again. The slider represents the amount of flashloan leverage you are applying on top of your existing collateral. This increases your total market exposure while updating key metrics such as your Total Collateral, Total Debt, Collateralization Ratio (ICR), and Liquidation Price. Although you can still deposit more collateral, the slider controls the leverage, increasing your exposure rather than simply making your position safer.
3.1.1 Review and Confirm the Adjustment
Once you’ve entered the additional collateral and adjusted the leverage slider to your preference, the platform will show you a summary comparing your current and new position metrics.
For example, the New ICR might increase from 124% to 143.83%, reflecting a safer position, and your New Liquidation Price might decrease, providing a greater buffer. This is the critical moment to ensure the changes align with your strategy.
If everything looks correct, click Approve to confirm the adjustment. The system will process the transaction, and your position will be updated accordingly with more collateral and, potentially, a higher leverage ratio.
3.2 Deleveraging your Position
Deleveraging is the process of repaying part of your borrowed eBTC to reduce exposure and lower your leverage. By deleveraging, you are essentially buying back part of your debt, which increases the safety of your position by improving the ICR and reducing your risk of liquidation. To delever, click on the Delever option.
For example, if you choose to delever by repaying 0.3 eBTC, the system will automatically update your New Total Debt, New ICR, and New Liquidation Price based on how much you repay. Deleveraging reduces your debt and lowers the leverage ratio, giving you more protection in case of price fluctuations.
3.2.1 Review and Confirm the Deleveraging
As with adjusting, you’ll be presented with a summary of your deleverage action before confirming. This preview will show you how your position will change after you delever. For example, your ICR might increase significantly (e.g., from 124% to 178.05%) due to the repayment of 0.3 eBTC. The New Liquidation Price will also change, giving you more room before your position risks liquidation. Review the comparison between your current and new metrics carefully, then click Confirm to complete the deleveraging process.
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Remember, always ensure you have a good understanding of the risks involved when working with Leverage.
Adjusting your position by adding more collateral strengthens the overall health of your leverage. It increases the amount of stETH used as collateral, improving your ICR, which makes your position safer. When your collateral increases, your liquidation price also improves, meaning you have a wider margin before your position gets liquidated. This is useful when you want to bolster your leverage position or take on more debt while maintaining safety.
Deleveraging is the opposite process, where you repay part of your eBTC debt. By doing this, you reduce the total amount you owe, which in turn reduces your leverage ratio. Deleveraging improves your ICR and lowers the chance of hitting the liquidation price, offering better protection in volatile markets. It’s a strategy used when you want to lower your exposure and risk without necessarily closing the position.
Both adjusting and deleveraging are critical actions to actively manage leverage, ensuring that your position stays healthy and adaptable to market movements.
❓ 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.