# Leverage

Leverage allows traders to place trades with a value much larger than their actual account balance. On Kana Perps, contracts can be traded with leverage of up to 20x.

<mark style="color:red;">**Leverage = Order Value / Margin Used**</mark>

Leverage greatly affects margin usage and requirements, increasing the risk of liquidation. Traders must understand how leverage works and the risks involved. To avoid falling below the maintenance margin (the margin requirement per your positions) and facing liquidation, ensure your positions have sufficient margin by regularly monitoring them and depositing additional funds when necessary. &#x20;

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