⚠️Risks
For your consideration.
Borrowing to Leverage
Borrowing an asset can effectively result in leveraging a position. If 1 ETH is borrowed, 1 ETH plus interest must be paid to get back deposited collateral. The same amount of ETH must be paid regardless of change in value.
Borrowing a volatile asset and selling it would be the same as opening a short position. Borrowing a stablecoin to buy a volatile asset creates a net long position.
Depositing, borrowing, and selling volatile assets can create a complex position. Please make sure you understand the actions you are taking. Seismic is not responsible for the actions you take when it comes to utilizing leverage on the platform.
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