Proposal for increased margin for Alpie holders

Simple Summary: Increase margin for Alpie holders

Abstract: Increase margin for Alpie holders so that instead of normal 3x pools they will be able to use x5 pools

Motivation: This will enable Alpie holders to Short positions with 1,5 exposure and long positions with 2,5 exposure when the market reversal occur.

Rationale: Give it a use as well as optimize exposure for the current market

Implementation: Maybe even have a differentiation between Dauntless and Dreamers, with Dauntless being able to short x5 and Dreamers to long x5, this would create double the amount of demand for such assets.
Also increase their max exposure before being liquidated to x7-8.

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Hi @Vinao great idea I think they’re already developing this. Roadmap - Alpaca Finance
Or do you mean the AV?

Higher max leverage for Alpies holders is in development and scheduled to be released within the next 2-3 weeks

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Oh thank you have not noticed that in the roadmap
But 50% higher leverage would be 3x → 4x
It would be ok but not great
And having some sort of mechanic like the Dauntless and Dreamers being 2 different leverage additions would increase such needs

Edit: leverage will be 4.5x not 4x as I said, thanks @huacayachief

Great to know, thanks Sam

The max leverage allowed will be 3x → 4.5x

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Thanks for the information, I will edit my response, it is better then what I imagined

will it be 50% for all pools?
6x pools will become max 9x?

Not all of them. Some don’t have the liquidity to support higher leverage.

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Only for pools with enough liquidity. We will publish the article early next week with the lists of all supported pools.

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