# FAQs

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### Getting Started

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#### What is Lavarage?

A decentralized on-chain prime brokerage platform built on Solana.

Since launching last year, Lavarage has powered over $200M in on-chain spot margin trading across thousands of Solana tokens—especially long-tail assets like memecoins and AI tokens. Trade with up to 4X leverage on the newest tokens before they hit centralized exchanges or perp DEXs.
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#### Do I have to deposit funds to start trading?

No - you don't have to deposit anything upfront. You only pay the initial margin when opening a leverage position, and the tokens you purchase become the collateral for your position.
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#### What is the best platform to use Lavarage?

Lavarage is designed to be mobile-first and optimized for an app-like experience. We recommend using Lavarage within your preferred decentralized wallet app on mobile, though it works perfectly on desktop browsers as well.
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### Trading Basics

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**How does spot margin trading work on Lavarage?**
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Lavarage is a liquidity layer built on top of existing DEXs. Liquidity providers deposit funds and open margin liquidity pools for any token with DEX liquidity. Traders can buy tokens with leverage by borrowing from these pools.
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**How is a leverage position opened?**
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**Example:** Trader Bob wants to buy $WIF at 2x leverage using 10 SOL:

**Prerequisites:** Bob needs >10 SOL and at least one liquidity pool supporting $WIF up to 2x leverage

**Process:**

1. 10 SOL (initial margin) from Bob's wallet + 10 SOL (borrowed) from liquidity pool = 20 SOL
2. 20 SOL purchases $WIF on DEXs like Orca
3. $WIF tokens are locked as collateral in smart contract until position closes
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**How can a leverage position be closed?**
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**Four methods:**

1. **Repay** - Send outstanding loan amount (borrowed + interest), receive collateral tokens
2. **Sell** - Collateral value ≥ outstanding loan; proceeds repay loan first, remainder returned to wallet
3. **Take Profit** - Set target price to automatically close position when reached.\
   \&#xNAN;***Note:** This feature is currently in BETA. Take Profit orders are executed on a best-effort basis and are not guaranteed. Please monitor your position closely, as there is a possibility that the Take Profit order may not be filled.*
4. **Liquidate** - When LTV ≥ liquidation threshold, lender liquidates and receives collateral
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**How can I manage my leverage position?**
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**Managing Open Positions:**

* **Split** - Divide position into multiple separate positions
* **Partial Repay** - Reduce leverage by partially repaying loan
* **Partial Sell** - Split position and sell a portion of your collateral while keeping the remaining position active.
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**Would I lose more than my initial margin?**
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No, maximum loss per position is your initial margin (ROI capped at -100%). Every position is isolated.
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**How is LTV calculated?**
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LTV (Loan-to-Value) = (Borrowed Amount) / (Current Collateral Value). For example, if you borrow 10 SOL and your collateral is worth 20 SOL, your LTV is 50%.
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**How long can I keep a position open?**
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Positions can remain open indefinitely as long as your LTV stays below the liquidation threshold (typically 90%).
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**Is there an API for trading?**
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Yes, check out LavaOS in our [Lavarage API](https://lavarage.gitbook.io/lavarage/platform/lavarage-api) documentation for full details.
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***

### Trading Features & Limitations

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#### What is the maximum leverage I can trade with?

No hard limit - determined by liquidity providers' maximum open leverage settings for respective tokens.
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#### What tokens can I trade with leverage?

Any token with liquidity on DEXs and margin liquidity on Lavarage. No permissioning or listing process required. Contact our team if you want to start margin trading a specific token.
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#### Can I use other currencies besides SOL (e.g., USDC)?

Yes, Lavarage now supports both SOL and USDC as quote currencies. You can select your preferred quote currency when opening positions.
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#### Can I short tokens with leverage?

No, long-only for now. We're focusing on leverage swaps rather than margin shorting.
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#### Can I deleverage a position partially?

Yes, you can use Partial Repay to reduce your leverage by repaying a portion of your loan while keeping the position active. For closing positions, see "How can I manage my leverage position?" for all available options.
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#### Can I add to my open position?

Not currently. You can open multiple isolated positions for the same token. Feature planned for future.
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#### Can lenders recall my loan?

Not at the moment. Keep positions open as long as LTV stays below liquidation threshold. Loan recall planned for future.
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***

### Earning & Rewards

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#### Can I refer friends?

Yes! Visit <https://app.lavarage.xyz/referral> to generate your referral link and start earning.&#x20;

Both you and your referees benefit: referrers earn fee-sharing rewards, while referees receive discounts on all fee-involved transactions (opening positions, closing positions, etc.).
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#### How can I earn yield as a lender?

Actively manage lending pools and earn interest-based yield. Create loan offers with custom terms (APR, LTV, exposure limits) for different tokens. No lock-up periods - deposit and withdraw instantly.&#x20;

Access at [yield.lavarage.xyz](https://yield.lavarage.xyz/)

**Note:** Creating lending pools requires [Lava Rock Alpha](https://lavarage.gitbook.io/lavarage/community/lava-rock-alpha) NFT ownership.
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#### What is the Lava Rock NFT?

Lava Rock NFTs grants early access to new features. Unlike PFP collections, Lava Rocks have no unique traits or rarity rankings and are released in multiple series, with the first series being the most exclusive.

For complete details on benefits and how to acquire one, visit the [Lava Rock Alpha](https://lavarage.gitbook.io/lavarage/community/lava-rock-alpha) page.
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***

### Support & Community

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#### Where can I get help?

Open a ticket via the support widget on [app.lavarage.xyz](https://app.lavarage.xyz) or visit our [Telegram support channel](https://t.me/lavarage_xyz/3361).
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#### What wallets are supported?

All popular wallets are supported, including Phantom, Jupiter, Backpack, and OKX. For the best experience, we recommend Phantom.
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#### My transaction is stuck, what should I do?

Contact support immediately via the support widget on [app.lavarage.xyz](https://app.lavarage.xyz) or visit our [Telegram support channel](https://t.me/lavarage_xyz/3361).
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#### Why is my position not showing up?

Try refreshing the page, clearing cache, or switching devices (desktop ↔ mobile). If the issue persists, contact support via the support widget on [app.lavarage.xyz](https://app.lavarage.xyz) or our [Telegram support channel](https://t.me/lavarage_xyz/3361).
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#### Why can't I open a position for a specific token?

Refresh the page and confirm sufficient liquidity is available. If the issue persists, contact support via the support widget on [app.lavarage.xyz](https://app.lavarage.xyz) or our [Telegram support channel](https://t.me/lavarage_xyz/3361).
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#### How much SOL should I keep for transactions?

We recommend maintaining at least 0.1 SOL in your wallet to cover network transaction fees.
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#### Is there a Telegram community?

Yes, join our [official Telegram channel](https://t.me/lavarage_xyz/1).
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#### How can I provide feedback?

Share feedback in our [official Telegram channel](https://t.me/lavarage_xyz/1) or open a ticket via the support widget on [app.lavarage.xyz](https://app.lavarage.xyz).
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#### How do I report a bug?

Open a ticket via the support widget on [app.lavarage.xyz](https://app.lavarage.xyz) or report it in our [Telegram support channel](https://t.me/lavarage_xyz/3361).
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#### What if a token migrates or changes contract?

Always close any positions before a token migrates or changes contracts.
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***

### Fees & Costs

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#### What do I pay for margin trading?

Margin trading on Lavarage involves platform fees and interest charges. For complete details on fee structures and interest rate calculations, see our [Fees & Interest](https://lavarage.gitbook.io/lavarage/platform/fees-and-interest) page.
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#### Are there any hidden fees?

No hidden fees. All fee details are listed on our [Fees & Interest](https://lavarage.gitbook.io/lavarage/platform/fees-and-interest) page.
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#### How is the open fee calculated exactly?

Visit our [Fees & Interest](https://lavarage.gitbook.io/lavarage/platform/fees-and-interest) page for all the up-to-date calculations and details.
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#### Do I pay fees when closing a position?

Yes. Visit our [Fees & Interest](https://lavarage.gitbook.io/lavarage/platform/fees-and-interest) page for current closing fee details.
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***

### Use Cases

#### What are common use cases for Lavarage?

<table data-view="cards"><thead><tr><th></th><th></th></tr></thead><tbody><tr><td>💸 <strong>Day traders</strong></td><td><br>Amplify returns on shorter timeframe bets</td></tr><tr><td><strong>🤑 Memecoin traders</strong></td><td><br>Make smaller leveraged bets on volatile assets, reducing downside risk while capturing upside</td></tr><tr><td>💎 <strong>DeFi traders</strong> </td><td><br>Trade with leverage using hot wallet, repay from cold wallet to retrieve tokens - keeps less in hot wallet without missing opportunities</td></tr></tbody></table>

***

### Platform Comparison

#### What's the difference between Lavarage and perpetual DEXs?

<table data-card-size="large" data-view="cards"><thead><tr><th></th><th></th><th data-type="rating" data-max="5"></th><th></th><th data-type="rating" data-max="5"></th><th></th><th data-type="rating" data-max="5"></th><th></th><th data-type="rating" data-max="5"></th></tr></thead><tbody><tr><td>🚀 <strong>Lavarage</strong> (Spot Margin)</td><td><p></p><p>Buy actual tokens, can withdraw to your wallet</p></td><td>5</td><td>Trade at true market price on existing DEXs</td><td>5</td><td><p></p><p>Less platform dependency - positions retain value even if platform goes down</p></td><td>5</td><td></td><td>null</td></tr><tr><td>👥 <strong>Perp DEXs</strong> (Perpetual Futures)</td><td><p></p><p>Trade synthetic derivative instruments</p></td><td>3</td><td>Trade against professional market makers, prices may differ from true market price</td><td>4</td><td>Platform-proprietary futures become worthless if platform fails</td><td>1</td><td>Cannot withdraw underlying tokens</td><td>2</td></tr></tbody></table>

#### Why should I use Lavarage over other platforms?

<table data-view="cards"><thead><tr><th></th><th></th><th></th></tr></thead><tbody><tr><td>🌐 <strong>More decentralized</strong></td><td><br>Less platform dependence</td><td></td></tr><tr><td>✨ <strong>More opportunities</strong></td><td><br>Earlier/exclusive access to trade newer tokens with leverage</td><td></td></tr><tr><td><strong>💎 Mutual alignment</strong></td><td><p></p><p>Always trading at true market price on DEXs, not against professional traders</p></td><td></td></tr></tbody></table>

#### Is Lavarage a DEX? How is it different from Raydium or Orca?

No, Lavarage is not a DEX. It's a two-sided liquidity marketplace built on top of existing DEXs. We partner and integrate with top DEXs and aggregators rather than building our own.

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### Platform & Future

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#### Is Lavarage only on Solana?

Lavarage currently supports Solana and BNB Smart Chain. Multi-chain expansion is planned for the future to support additional blockchains.

*If you're part of an L1/L2/L3 chain interested in earlier Lavarage deployment, reach out!*
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#### Who is building Lavarage?

Core team from diverse backgrounds in traditional finance, gaming, and blockchain. All engineers by training (nerds!) who love to trade (degens!). We built this because we wanted to use it ourselves and were frustrated with existing DeFi UX (boomers!)
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#### Why "Lavarage"?

Sounds like...leverage! Our dream: build technology allowing every degen to experience the thrust of riding erupting lava to the moon.
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#### Is there a mobile app?

Mobile app coming soon. In the meantime, Lavarage is designed to be mobile-first and optimized for an app-like experience within your wallet app. Also works perfectly on desktop browsers.
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#### Wen token?

🤫
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***


---

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