# 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="/files/nxfJTWGK6QBGEXTsKS7m" alt=""><figcaption></figcaption></figure>

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


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