Glossary & FAQ
A reference for terms used throughout the Lavarage documentation, plus answers to the most common questions.
Glossary
Add Collateral
Send additional margin from your wallet into an open position to reduce leverage and push your liquidation price further away.
APR (Annual Percentage Rate)
The yearly interest rate charged on borrowed capital. Interest is simple (not compound) and accrues daily.
APY (Annual Percentage Yield)
The annualized return earned by staking in a vault, accounting for compounding of NAV growth.
Astralane
MEV protection service that prevents sandwich attacks on your trades. Toggle it on in trade settings, especially for large trades.
Borrow
Take a loan against your tokens without opening a leveraged trade. Keep your holdings, access liquidity.
Margin / Collateral
The capital you put up from your wallet. In trading, this is your margin — the initial deposit that determines your position size. In borrowing, this is your collateral — the tokens you pledge to secure a loan. In both cases, this is your money at risk.
Compound
Reinvest unrealized gains back into your position, increasing your position size without adding new capital.
Exposed Vault
A lending vault where stakers participate in liquidation PnL — both gains and losses. Higher risk, potentially higher returns.
Insulated Vault
A lending vault where liquidation losses are absorbed by the vault operator, not stakers. Stakers earn lending interest only.
Jupiter
A DEX aggregator on Solana that routes token swaps for the best price. Lavarage executes all swaps on DEXs via Jupiter.
Leverage
A multiplier on your buying power. 5x leverage means your position is 5 times the size of your margin. Amplifies both profits and losses.
Liquidation
Automatic closure of a position when its LTV exceeds the liquidation threshold. Remaining value goes to the lender. Use lower leverage and set Stop-Loss orders to manage risk.
Loan Offer
A set of lending terms within a vault, configured by the lender for a specific collateral token. Includes interest rate, max open LTV, liquidation LTV, and maximum exposure. The platform automatically matches traders to the best available loan offer.
Long
A trade where you profit when the token's price goes up. You hold the actual token, not a synthetic contract.
LTV (Loan-to-Value)
The ratio of your borrowed amount to your position's current value. Higher LTV means you are closer to liquidation. The liquidation threshold is set per loan offer — see Liquidation for details.
MEV (Maximal Extractable Value)
Value extracted by bots that front-run or sandwich your transactions. Lavarage offers MEV protection via Astralane.
Merge
Combine two positions on the same loan offer into a single position. Simplifies portfolio management.
NAV (Net Asset Value)
The value per share of a lending vault. NAV grows as the vault earns interest from traders.
Partial Repay
Repay a portion of your loan to reduce leverage and interest costs without closing the position.
Partial Sell
Close a percentage of your position while keeping the rest open. Take some profit or reduce exposure.
Position
Your active trade on Lavarage — includes the tokens held, borrowed amount, and current P&L.
Privy
The authentication provider that powers email login and embedded wallets on Lavarage. Enables features like TP/SL that run server-side.
Quote Token
The token used as lending capital (e.g., USDC, WSOL). When you go long, you borrow the quote token. When you go short, you receive the quote token after selling.
ROI (Return on Investment)
Return on your initial margin as a percentage. At 5x leverage, a 10% price move produces a 50% ROI. Displayed on your position card and shareable position cards.
Referral
A program where you earn commissions by inviting other traders to Lavarage. See Referral Program for details.
Short
A trade where you profit when the token's price goes down. You sell borrowed tokens and buy them back cheaper.
Slippage
The difference between the expected price and the actual execution price of a swap. Set your slippage tolerance in trade settings.
Stop Loss (SL)
An automated order that closes your position when the price moves against you past your stop price. Executes as a market order — best-effort, not guaranteed at the exact stop price. Requires email login.
Swap
Exchange one token for another on DEXs via Jupiter, without leverage or opening a position.
Take Profit (TP)
An automated order that closes your position when the price reaches your profit target. Executes as a market order — best-effort, not guaranteed at the exact target price. Requires email login.
Lending Vault
An isolated vault operated by a single lender, holding one token (e.g., SOL or USDC). The lender sets loan offers within the vault with their own terms. Each vault is independent — risk is not shared across vaults. See Earn for details.
Withdraw Margin
Pull excess margin out of a position, increasing effective leverage. Use carefully — it moves your liquidation price closer.
FAQ
What wallets does Lavarage support?
Phantom, Solflare, any Wallet Standard compatible wallet, or email login via Privy.
Do I need to sign up?
No. Connect your wallet and trade. Email login is optional for additional features like Take-Profit and Stop-Loss orders.
What tokens can I trade?
Any token that trades on a Solana DEX and has margin liquidity on Lavarage. There is no listing process — if there is a loan offer for it, you can trade it.
What are the fees?
1% opening fee, 1% closing fee, plus simple interest on borrowed capital. The interest rate is set by the loan offer and locked when you open your position.
What is the maximum leverage?
It varies by token pair and direction. The interface shows you the maximum available for each pair. Leverage depends on the loan offer's parameters.
Can I get liquidated?
Yes. If your position's LTV exceeds the liquidation threshold set by the loan offer, it is closed automatically. The threshold varies by offer but is typically around 90% LTV. Use lower leverage and set Stop-Loss orders to manage risk.
What is MEV protection?
It routes your transaction through Astralane to prevent sandwich attacks. Toggle it on in trade settings, especially for large trades.
Why can't I set TP/SL?
Take-Profit and Stop-Loss require email login. They are server-side automated orders that run even when you are offline. Connect via email to unlock them.
What happens to my tokens in a long position?
You hold the actual token. Your position contains real tokens swapped on DEXs via Jupiter, not synthetic contracts. This is spot margin — real asset exposure.
What is the difference between Swap and Trade?
Swap is a simple token exchange with no leverage and no position. Trade opens a leveraged position where you borrow capital and have ongoing exposure to price movements, accruing interest until you close.
How does interest work?
Simple interest accrues daily on your borrowed amount. Formula: Borrowed Amount x APR x Days / 365. The rate is set by the loan offer and locked when you open.
Is Lavarage audited?
V1 was audited by Code4rena and Sec3. V2 inherits the same base architecture, and a V2-specific audit is in progress.
Can I trade on mobile?
Yes. The platform is fully responsive with a mobile-optimized layout.
What is the unstaking cooldown?
When you unstake from a vault, there is a 48-hour cooldown before you can claim your tokens. This protects lenders from sudden liquidity withdrawal.
Need more help? Browse the full documentation starting with What is Lavarage?.
Updated 4 days ago