# Leverage
⚠️ Leverage trading involves high financial risk. Before trading crypto assets, educate yourself to make informed decisions. Please beware that Waves.Exchange does not provide financial, tax, or legal advice. You should make such decisions on your own or consult with reliable experts. Waves.Exchange leverage does not involve loaning funds and provides trading without the risk of asset liquidation. In Waves.Exchange the leverage is done by rebalancing the supply of the issued assets in the smart contact. If the underlying asset price goes down, the leverage assets will not be liquidated from the trader balance, but the USD price of one of the two assets will temporary go down.
Waves.Exchange supports trading BTCUP, BTCDOWN, WAVESUP and WAVESDOWN leverage assets that have their price based on the price of the underlying assets (BTC and WAVES). Leverage trading allows to earn profit by investing either in BULL (BTCUP, WAVESUP) or in BEAR (BTCDOWN, WAVESDOWN) asset when the price is low and then selling the asset when the price goes up.
Example: If the price of BTC goes ~1% up, the price of BTCUP goes ~3% up and the price of of BTCDOWN goes down. When the price of BTC goes ~1% down, the price of BTCDOWN goes ~3% up and the price of BTCUP goes down.
Note: Leverage assets are 100% backed by USDN asset. The current supply indicators of the smart contract assets can be reviewed in the system UI and in the smart contract (opens new window). The prices are posted by the system of decentralized oracles and are additionally verified by oracle smart contract. Oracle data is signed by ECDSA-25519 cryptographic signature protocol validated by every Waves node.
On the Leverage tab you can observe the volatility of the underlying assets in real-time to make quick trading decisions. To access the Leverage tab, open Waves.Exchange (opens new window) app, login to your account and click Leverage.
The tab displays the current smart contract price, real leverage, last price and the 24h change of the leverage assets. Click ˅ for more info about the leverage assets.
Click Trade to quickly navigate to Waves.Exchange trading tab with the desired trading pair selected.
If you have questions about leverage, scroll the Leverage tab down to review FAQ section.
# Buy Leverage Assets for USDN via Smart Contract
You can buy leverage assets via smart contract for USDN at any time.
On the Leverage tab click Issue.
In the I send field specify the amount that you want to spend. In the I receive field the approximate calculated amount of the received asset based on the current smart contract price will be displayed.
Select the Transaction Fee Options checkbox to enable selection of the fee asset.
Click Issue X to continue. (where X is the received asset). The transaction will take effect with the next block update.
Note: The received amount may differ from what is displayed in the I receive field depending on the price changes of the next 1-2 blocks.
# Exchange Leverage Assets to USDN via Smart Contract
You can exchange leverage assets to USDN via smart contract at any time.
On the Leverage tab click Redeem.
In the I send field specify the amount that you want to exchange. In the I receive field the calculated amount of the received USND based on the current smart contract price will be displayed.
Select the Transaction Fee Options checkbox to enable selection of the fee asset.
Click Redeem USND to continue. The transaction will take effect with the next block update.
Note: The received amount may differ from what is displayed in the I receive field depending on the price changes of the next 1-2 blocks.
If you have difficulties with Waves.Exchange, please create a support (opens new window) ticket or write a question (opens new window) on our forum.