How to Reduce Liquidation Risk in Leveraged Yield Farming
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Leveraged yield farming can offer higher returns but also comes with greater risk. One of the most significant risks is liquidation. When you open a leveraged position, the additional capital from your own funds acts as collateral. When the value of the collateral is no longer enough to cover the debt, it is at risk of liquidation and losing a portion or all of the collateral.
How to Reduce Liquidation Risk in Leveraged Yield Farming
How to Reduce Liquidation Risk in Leveraged…
How to Reduce Liquidation Risk in Leveraged Yield Farming
Leveraged yield farming can offer higher returns but also comes with greater risk. One of the most significant risks is liquidation. When you open a leveraged position, the additional capital from your own funds acts as collateral. When the value of the collateral is no longer enough to cover the debt, it is at risk of liquidation and losing a portion or all of the collateral.