> For the complete documentation index, see [llms.txt](https://docs.sudo.finance/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.sudo.finance/trade-on-sudo/educational-resources/using-leverage-wisely.md).

# Using Leverage Wisely

Leverage multiplies your exposure — and your risk. Here’s how different levels of leverage impact your position size and the risk of liquidation:

📊 Leverage vs. Position Size

| Leverage | Capital at Risk | Max Position Size | Liquidation Risk |
| -------- | --------------- | ----------------- | ---------------- |
| 1x       | $1,000          | $1,000            | Low              |
| 5x       | $1,000          | $5,000            | Moderate         |
| 10x      | $1,000          | $10,000           | High             |

<figure><img src="/files/u51DNHdZZsOKwOa6sGwg" alt=""><figcaption></figcaption></figure>

Liquidation occurs when your margin drops below maintenance levels.