> For the complete documentation index, see [llms.txt](https://docs.antimatter.finance/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.antimatter.finance/antimatter-perpetual-options/core-concept/leverage.md). # Leverage Ratio In general, leverage is described under two frames. The first one is inherent, which based exclusively on $$C$$and $$F$$. The current version(R3) is defined under the condition that $$C\leq 2F$$, resulting in that the leverage is moderate and the price of both tokens will remain in the the interval $$\[0,C-F]$$. The rate of change of token prices will be medium as price of ETH changes. Future versions will include $$4F \geq C \geq 2F$$(R4) and $$C\geq 4F$$(R5). In these cases, the price of call token will exceed $$C-F$$, meaning that when price spikes, one can make more money if he holds a call token. If the price of ETH dips, the call token price will drop in the same fashion. In the extreme case, there might be negative prices, which can be seen either as an anomaly or a perfect change to generate a token. The dynamic leverage is related to the extend that the price differs from the strike price. If $$c$$is close to $$F$$, the call token has very high leverage. If $$c$$is close to $$C$$, the put token has very high leverage. There are two expressions(for call and put respectively) $$e\cdot\frac{E\_x}{z\_x},e\cdot\frac{E\_y}{z\_y}$$ measuring how much the option value changes corresponding to underlying value changes. Putting two frames together, supposing that $$F=1000,C=5000,c=1100$$, call token is highly leveraged. --- # Agent Instructions This documentation is published with GitBook. GitBook is the documentation platform designed so that both humans and AI agents can read, navigate, and reason over technical content effectively. Learn more at gitbook.com. ## Querying This Documentation If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question. Perform an HTTP GET request on the current page URL with the `ask` query parameter, and the optional `goal` query parameter: ``` GET https://docs.antimatter.finance/antimatter-perpetual-options/core-concept/leverage.md?ask=&goal= ``` `ask` is the immediate question: it should be specific, self-contained, and written in natural language. `goal` is optional and describes the broader end goal you are ultimately trying to accomplish on behalf of the user. GitBook uses it to tailor the answer towards what is most useful for that goal. The response will contain a direct answer to the question and relevant excerpts and sources from the documentation. Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.