# Leveraged Positions Polyperp allows traders to take leveraged positions on the probability of outcomes in Polymarket events. Each position is directly anchored to the real-time market-implied probability of the event, which serves as the reference price for calculating gains, losses, and liquidation thresholds. Traders can open long or short positions with up to 10x leverage, fully collateralized in USDC, and can hold them until the underlying Polymarket event resolves. Once the event resolves (YES = 1, NO = 0), all open positions are automatically settled according to the outcome, and profits or losses are distributed proportionally to the trader’s exposure and leverage. Initial margin requirements scale with the chosen leverage, while the maintenance margin ensures solvency and protects against excessive risk. For instance, at maximum leverage (10x), the maintenance margin is set to 5% of the position notional. All margin balances are tracked and updated on-chain in real time as the Polymarket reference price evolves. Price alignment and risk management are inherently maintained through the combination of the on-chain order book, PLP liquidity, and continuous monitoring of collateral and leverage. --- # Agent Instructions: Querying This Documentation If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question. Perform an HTTP GET request on the current page URL with the `ask` query parameter: ``` GET https://polyperp.gitbook.io/docs/trading/leveraged-positions.md?ask= ``` The question should be specific, self-contained, and written in natural language. The response will contain a direct answer to the question and relevant excerpts and sources from the documentation. Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.