Risk Disclosure
Leverage is a tool for taking more risk on purpose. Read this before you use it — the failure modes below are ordinary, not exotic.
Leverage risk
Leverage multiplies both directions. At 20x, a 5% move against you wipes the position — and skin markets routinely move 5% in a day on a Valve announcement, a case rotation or a single whale.
| Leverage | Adverse move that liquidates |
|---|---|
| 2x | ≈ 50% |
| 5x | ≈ 20% |
| 10x | ≈ 10% |
| 20x | ≈ 5% |
Liquidation risk
Liquidation is automatic and does not wait for you. A price spike at 4am closes your position while you sleep; the fact that price returned by morning changes nothing. There is no margin call and no grace period.
Oracle and market-structure risk
- Skin prices come from marketplaces with thin books — much thinner than crypto. A modest amount of money can move a mark.
- Feeds can go stale or wrong. Guards reduce this risk; they cannot eliminate it.
- Valve can change the game. An item's supply, tradability or existence is not under anyone else's control.
Counterparty risk
During the beta CSL custodies deposits (see Security & Custody). That means the usual custodial exposure: technical failure, operational error, or loss of protocol funds could affect your balance. This risk is real and cannot be argued away.
Funding risk
Funding accrues hourly on notional. A position that is merely flat for a week can still bleed out through funding at high leverage. Directional conviction does not exempt you from carry.
Legal and regulatory
Leveraged derivatives are restricted or prohibited in some jurisdictions. Using CSL is your decision and your responsibility; access may be limited without notice.