# Collateral

<mark style="color:green;">**Collateral**</mark> refers to the initial amount of money you invest in a leveraged trade. Your collateral amount will determine the rate with which you <mark style="color:green;">**earn profits**</mark>, but also serve as the maximum <mark style="color:orange;">**potential loss**</mark> you could incur if the trade does not go as expected.

<figure><img src="https://2409618720-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FLeVxYGMCSgN2gnHGcfCk%2Fuploads%2Fru60aQMvY5vwngATA4Dz%2FUntitled.png?alt=media&#x26;token=a5fef315-f450-4553-a8df-46a5bfcb4f61" alt=""><figcaption></figcaption></figure>

**Slide the bar** or **click** the USDC value on the right to type in your desired amount.
