# SCCP-223: Increase Max Initial Leverage on Traditional Markets

## Simple Summary

This SCCP proposes to increase maxLeverage on the EUR-PERP, XAU-PERP, and XAG-PERP markets to 25 from 10.

## Abstract

maxLeverage is multiplied by initial margin to find the maximum absolute notional value of a position. In order to align current leverage offerings with other exchanges, this proposal seeks to increase this parameter, allowing for higher leverage.

Traditional markets were initially launched with a maxLeverage of 10 to limit risk to the Synthetix debt pool, and have now been live for a sufficient amount of time to monitor risk of front-running and manipulation.

## Motivation

Traditional assets typically experience lower volatility, and have much better liquidity than crypto assets. These assets are currently offered with lower fees than cryptocurrency offerings, which make them particularly attractive for higher leverage since fees are one of the most significant limitations from a user perspective when increasing leverage.

Forex pairs in particular are typically offered with leverage well above 10x, even above 100x due to their low volatility. With current OI caps and an exceptionally low likelihood of manipulation, assets such as gold, silver, and forex pairs should be able to support the same level of leverage offered on major cryptocurrency pairs.

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