> ## Documentation Index
> Fetch the complete documentation index at: https://docs.worm.wtf/llms.txt
> Use this file to discover all available pages before exploring further.

# What are Leveraged Prediction Markets?

> Leveraged markets allow amplified winnings, or liquidation, by giving traders 2x or 3x exposure.

Worm offers a special class of markets called **Leveraged Prediction Markets**, marked with "Win 2x" or "Win 3x" labels.

![Leverage examples](https://mintcdn.com/worm/iPlX1l4wJfway3bt/images/leverage_examples.png?fit=max\&auto=format\&n=iPlX1l4wJfway3bt\&q=85\&s=dc5ae8b14e761d1b01731e8e1fc39b0b)

These markets function similarly to leveraged or margin trading.\
When you open a leveraged position:

* Worm supplies the additional liquidity needed to give you **2–3× exposure** relative to your stake.
* Your winnings as well as your losses scale by the leverage factor.

## Fees on Leveraged Positions

Worm charges a closing fee on leveraged positions when you win. There is no fee if you lose.

This structure means you're never charged when taking a loss, making the downside risk more predictable.

## Risk & Reward

This design creates a high-risk, high-reward version of prediction markets, where traders can profit significantly more than in standard markets but must manage liquidation risk carefully.


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