# Leverage and position limit Risk limits are a risk management mechanism used to limit a trader's position risk. In a volatile trading environment, a single trader holding a large position with high leverage can result in significant losses. The system uses the concept of dynamic leverage, i.e. the maximum leverage available for trading will vary depending on the value of the position held by the trader: the greater the value of the position held, the lower the maximum leverage available. At the same time, the larger the leverage selected, the smaller the open position. --- # 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://futuresdoc.gitbook.io/help-center/perpetual/untitled/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.