Leveraged Position

The Leveraged Position represents the USD price exposure of the underlying token. In other words, the entire value change of the underlying token is fully reflected in the value of the Leveraged Position.

Example

Continuing from the earlier example:

Suppose 1 SOL = $200, split into Funding Position ($100) + Leveraged Position ($100). If the SOL price instantly increases from $200 to $220 (+10%),

• The Leveraged Position value increases from $100 to $120 (+20%).

• This shows the 2x leverage effect in action.

The value of the Leveraged Position in USD terms is:

$$Leveraged\ Position\ Value = Underlying\ Token\ Value\ –\ Funding\ Position\ Value$$