# 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.

<figure><img src="https://3389746960-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2F6XOTuBliZWmYNBrB0hJ2%2Fuploads%2F2w6myVieTeJIun78u0rh%2FWelcome%20to%20FigJam-15.png?alt=media&#x26;token=e035c693-5d41-47c2-9353-25d48b7e612c" alt=""><figcaption><p>Borrow and swap rates are for example and may not be accurate to real-time values</p></figcaption></figure>
