# Leverage and position limit It's a prudent risk management mechanism that aims to mitigate the potential for significant losses by adjusting the maximum available leverage based on the trader's position value. By lowering the maximum leverage for larger positions and vice versa, the system helps to control the overall risk exposure of individual traders, especially in volatile market conditions. This dynamic approach to leverage strikes a balance between providing traders with flexibility and managing systemic risk. It's a valuable safeguard that promotes responsible trading practices and contributes to the overall stability of the trading ecosystem. --- # Agent Instructions: 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: ``` GET https://whitepaper.nomoex.com/our-product/nomodex/usdt-margined-perpetual-contract/leverage-and-position-limit.md?ask= ``` The question should be specific, self-contained, and written in natural language. 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.