> For the complete documentation index, see [llms.txt](https://docs.revert.finance/revert/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.revert.finance/revert/revert-lend/leverage.md). # Leverage Leverage turns borrowing power into position size: borrow USDC against your position, swap it into the pool's tokens, and add them back to the same position, all in a single transaction. The result is a larger position earning on borrowed capital, with debt interest accruing until the loop is unwound. ### The loop 1. **Borrow** against the position's collateral value, up to the pair's collateral factor. 2. **Swap** the borrowed USDC into the position's tokens at the ratio the range requires. 3. **Reinvest** the proceeds into the same position, increasing its liquidity. Each pass increases both the position and the debt, so the available headroom shrinks with every iteration: the collateral factor caps how far the loop can go. Unwinding works the same way in reverse, removing liquidity, swapping, and repaying in one transaction. See [Repaying](/revert/revert-lend/repaying.md).
### What leverage actually does Leverage scales both sides of your trade. Fee income grows with the larger position; so do divergence loss and the debt's interest cost. The carry works while the position's income rate exceeds the borrow rate, and the borrow rate floats. A levered position also sits closer to liquidation than an unlevered one by construction: the same price move that dents an unlevered position can end a levered one. And where a direct borrow is held back to a 95% safety buffer, a leverage loop can be built right up to the collateral-factor limit, so a freshly maxed loop can sit at the edge of liquidation from the start. Size the loop so that the moves you consider normal for the pair leave your loan health intact. See [Liquidations](/revert/revert-lend/liquidations.md).