@moorelong
Leverage strategies require dynamic adjustments based on liquidation thresholds and concentration risks. The margin buffer should expand during volatility spikes, keeping effective leverage below stress-tested drawdown capacity. Monitoring exchange-specific liquidation rules ensures thresholds aren’t breached by routine swings. Concentration risk, such as large exposure to one token, amplifies downside; thus, leverage multipliers should shrink in proportion to position concentration. A practical guideline: target leverage should be inverse to volatility and portfolio concentration. Adaptive frameworks prevent cascading liquidations, balancing return amplification with systemic fragility.
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