Risks & Considerations
Risks & Considerations
Using Portal allows you to borrow assets and trade with leverage — which also introduces important risks.
Please review these considerations carefully before opening a position.
Margin Level & Liquidation
Your margin level determines how close your position is to liquidation. As it decreases, your risk increases.
⚠️ If your margin level drops below 1.10, your position becomes eligible for liquidation.
Margin Risk Tiers:
Low Risk: margin level ≥ 1.5 You’re in a stable zone. Monitor markets periodically.
Medium Risk: 1.15 ≤ margin level < 1.5 Add collateral or repay debt to reduce exposure.
High Risk: 1.10 ≤ margin level < 1.15 Immediate action is strongly recommended.
Liquidation Zone: margin level < 1.10 Your position may be forcibly closed at market price.
💡 You can check your real-time margin level and liquidation price in the Portal Dashboard.
Borrowed Funds & Accrued Cost
When you borrow tokens through Portal, you pay an ongoing funding cost based on the borrowed amount and time held.
Funding Cost Formula:
Funding Cost = Balance × Funding Rate × Time
⚠️ The longer your position is open, the more cost you accrue — increasing your total debt and lowering your margin level.
You can repay your loan or add more collateral at any time to manage your exposure.
Token Locking & Collateral Usage
⚠️ Collateral supplied to Portal is locked and cannot be withdrawn unless your margin level supports it.
You can only reduce your collateral if:
You have no open positions OR
Your collateral exceeds twice the value of your total debt
Market Volatility
Price swings in crypto can be sharp and sudden.
High volatility can push your position into the liquidation zone quickly.
Use low leverage and diversify your collateral to reduce exposure.
💡 Start with conservative leverage levels (e.g., 2x–3x) until you're comfortable managing margin risks.
Multiple Positions = Compounded Risk
Each open position affects your overall Portal account health.
Margin levels are calculated on a cross-account basis.
A risky position can pull down your overall margin level.
⚠️ Monitor all open positions together — not just individually.
🔗 Quick Access
Last updated