Leveraged Loans
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)
Users can borrow BNB against their JOO, use the borrowed BNB to mint or buy more JOO, and repeat this process; i.e., looping.
UI Support: A user-friendly interface on the Joo Finance website facilitates looping in one transaction, making it quick and simple to open and unwind leveraged positions.
Fee Discount: The JOO minting fee is discounted from 2.5% to 1% when opening leveraged positions.
Liquidation: If a leveraged position defaults, then the JOO collateral is burned, causing the ratio of BNB per JOO to increase.
JOO collateral from liquidated positions is burned collectively, every day, at 00:00 UTC.
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