Leverage
Leverage lets you open a larger position than the USDC you put up. For example:
You commit 100 USDC as collateral.
You select 5x leverage.
Your position size is 500 USDC.
Leverage magnifies both gains and losses. A 5x position moves roughly 5 times faster, in either direction, than the underlying asset's price. This also means a smaller adverse price move can trigger liquidation — see article Liquidation: Triggers & Price Explained for details.
Default leverage for first-time traders (or anyone without a saved preference) starts at 2x.
Maximum leverage varies by market and is shown as a tag next to each market — always check this before opening a position, since it isn't the same for every asset.
Isolated margin
Solflare Perps launches with isolated margin only. This means:
Each position has its own collateral, separate from your other positions and the rest of your wallet.
If a position is liquidated, only that position's collateral is at risk — your other positions, and your wallet's USDC/SOL/other holdings, are untouched.
Cross margin (where multiple positions share collateral) is not available at launch.
Warning: Higher leverage means your liquidation price sits closer to the entry price. A small, normal price swing can be enough to close out a highly leveraged position. Always check your liquidation price before signing.