Your exchange may display a 2x leverage setting, but Cryptobots' trading algorithm operates within a more conservative range. This article explains why your exchange indicates a 2x leverage and clarifies how our system manages your actual position size to balance risk and maximize trading opportunities.

Our system incorporates a buffer of "headroom" to account for trading and funding fees. It's essential to note that the trade's leverage multiplier is calculated based on the position size, not the exchange's setting parameter. This means the 2x leverage displayed on your exchange is an indication of the maximum potential, not the active leverage employed by our system.

Consequently, your fully deployed position size should always fall within the range of 1x to 1.5x the balance size you had in your account when the trade commenced. This conservative approach ensures that while the exchange might show a higher potential, your actual trading exposure is carefully managed by our algorithm.

The "headroom" buffer is a critical component of our strategy. It is designed to absorb various trading and funding fees, as well as other potential market-related factors, without immediately impacting your core position. This proactive measure helps to minimize the effect of these costs on your overall performance.

By maintaining this balance between the exchange's indicated leverage and our system's actual operating range, we ensure that our algorithm effectively manages risks while maximizing trading opportunities for users. This approach also helps to minimize the impact of potential fees and other market-related factors on your overall performance, contributing to more stable and predictable trading outcomes.

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If you have further questions about leverage settings or your trading positions, please contact our support team for assistance.