> For the complete documentation index, see [llms.txt](https://bitprotocol.gitbook.io/bitprotocol/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://bitprotocol.gitbook.io/bitprotocol/v2-features/v2-frontend/leverage.md).

# Leverage

## **Leverage**

The **Leverage** option allows you to borrow BitUSD against your collateral **and automatically use it to buy more collateral**, effectively increasing your exposure (leveraging your position).

This is a powerful feature for advanced users who want to amplify returns — but it also increases liquidation risk.

<figure><img src="https://4014914631-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FvvwuEJ5drMEbA7hiVKkJ%2Fuploads%2F1UJfWHq36dRt0aFUixaS%2Fimage.png?alt=media&amp;token=1a3bed5f-c2e8-4a4d-8ec0-912194b007a7" alt=""><figcaption></figcaption></figure>

### 🪙 Step 1 – Select Your Collateral

* Choose the asset you want to deposit (e.g., **ROSE**).
* You’ll see:
  * **Balance:** Your available tokens.
  * **Allowance:** The amount approved for protocol use. If set to `0`, click **Approve tokens** before continuing.
  * **Use native token:** Option to use ROSE directly instead of a wrapped version.

***

### ⚡ Step 2 – Set Leverage Amount

* Enter how much collateral you want to deposit initially.
* Choose how much BitUSD you want to borrow.
* The system will **auto-swap the borrowed BitUSD into more ROSE** and add it to your position.

This increases your **effective collateral**, but also raises your **debt**.

***

### 📊 Step 3 – Review Position Details

The right-hand summary updates in real time:

* **Debt:** Total BitUSD borrowed.
* **Collateral Ratio (CR):** Health of your leveraged position after borrowing.
* **Position Risk:** Safe / Caution / Danger based on CR.

#### Detailed Summary includes:

* **Collateral Asset:** The total value of your initial deposit + auto-bought collateral.
* **Borrowed BitUSD:** New debt amount.
* **Collateral Ratio:** Updated after leveraging.
* **Borrow Fee:** One-time fee charged when borrowing (updates every 30s).
* **Liquidation Price:** Price of collateral at which your leveraged position will be liquidated.
* **Total Debt:** Final amount of BitUSD you owe.

***

### 🚀 Step 4 – Approve & Leverage

1. **Approve Tokens** → Required once per collateral type.
2. **Deposit & Leverage** → Confirms the transaction, locks collateral, borrows BitUSD, and re-invests automatically.