Leverage
Using leverage carries risks. It is possible to lose all of your collateral. Please trade with caution and understand potential risks before trading with leverage.
Leveraged Positions (Looping):
Advanced Feature: Users can borrow S against their EGGS, use the borrowed S to buy more EGGS, and repeat this process; i.e., looping.
Manual Looping: Because EGGS has a finite supply and can no longer be minted, manual looping requires acquiring collateral via third parties, i.e., exchanges.
Liquidation: If a leverage position defaults, then the EGGS collateral is burned, causing the ratio of S per EGGS to increase. EGGS collateral from liquidated positions is burned collectively, every day, at 00:00 UTC.
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