Leverage, done safely
How Predictifi offers leverage without the usual liquidation traps — volume-gated tiers, a TWAP check, a cooldown, and a lending vault whose insurance reserve is currently unfunded.
Leverage is powerful and dangerous in equal measure. On Predictifi you can open a leveraged long on eligible markets, and the design deliberately targets the sharpest edges that hurt traders elsewhere. Two of those defences are live in the contracts today; one — the Insurance Reserve — is deployed but currently unfunded, and this post says so where it comes up.
Earn your leverage
Higher leverage is gated by traded volume rather than handed out on day one:
| Leverage | Requirement |
|---|---|
| 2× | Open to everyone |
| 3× | Open to everyone |
| 5× | Requires $10,000+ traded volume |
| 10× | Requires $50,000+ traded volume |
Margin on any leveraged position is bounded to $50 to $2,000, so a single position cannot put an unbounded amount at risk. Note that this is a per-position bound only: the protocol-level cap on total open leveraged notional is currently disabled, so nothing limits how much leveraged exposure the system carries in aggregate.
No single-block liquidations
The most common way traders get unfairly liquidated is a momentary price spike. Predictifi closes that gap two ways:
- A 1-hour cooldown: a position simply cannot be liquidated in its first hour.
- A time-weighted average price (TWAP) check: the liquidation test reads the average price over the position's lifetime, not the instantaneous price. This is designed to prevent a wick that reverts in the same block from moving the liquidation test.
An insurance reserve — deployed, but empty today
When a liquidation recovers less than the borrowed amount, the shortfall is bad debt. Rather than immediately socialize it across lenders, an Insurance Reserve — a USDC buffer anyone can fund — is designed to make the lending vault whole up to its balance, so that only a shortfall beyond the reserve touches LPs. The reserve uses tracked accounting, so it can never be over-drawn.
That is the design. The reality on the current deployment is that the reserve was seeded with zero USDC and nothing funds it today, so 100% of any bad debt is socialized to vault LPs right now — the exact outcome the buffer exists to prevent. Vault LPs also earn no yield on their deposits at present. Until the reserve is funded, treat lending to the vault as unbackstopped.
The result is leverage that aims to be honest about its risk: your downside is your posted margin, and the liquidation price is shown before you open.
See Use leverage for the step-by-step, or the whitepaper for the full position math.