Risk Management for New Traders on LeverUp
Leverage can amplify gains — but without a risk framework, it amplifies losses just as fast. Here's how to manage risk as a new perp trader.
Core concepts and terminology explained for on-chain traders.
8 articles
Leverage can amplify gains — but without a risk framework, it amplifies losses just as fast. Here's how to manage risk as a new perp trader.
Price oracles bring real-world asset prices on-chain. Here's how they work, why oracle freshness matters for perpetual futures, and what stale pricing risk means for your trades.
Slippage is the difference between the price you expect to pay and the price you actually get. Here's why it happens in DeFi, how oracle-priced perp markets handle it differently, and how to minimize it when trading.
Leverage trading lets you control a larger position than your deposited capital. Here's how the math works, what leverage does to your liquidation risk, and how to size positions without blowing up your account.
A funding rate is the periodic payment between longs and shorts in a perpetual futures market. Here's how it keeps perp prices anchored to spot, what a high rate signals about positioning, and how to factor it into your trades.
Open interest measures the total value of all active positions in a market. Here's what rising and falling OI actually signals, how to use it alongside price action, and why it matters more in perp markets than anywhere else.
Liquidation is what happens when your collateral runs out. Here's the exact math behind when it triggers on LeverUp, what the oracle's role is, and how to manage your positions to stay out of range.
Perpetual futures are crypto derivatives with no expiry date. Learn how funding rates, leverage, liquidations, and mark price work — and how perps became the dominant instrument in DeFi trading.
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