FAQ

How does Haven leverage work?

Haven utilizes “bracketed leverage” to prevent leveraged positions from being liquidated. This is achieved by continually rebalancing the position based on user-defined settings. For more details, visit our Haven leverage page.

What are the risks?

We’ve implemented extensive safeguards to minimize risks and ensure positions remain secure, even during system downtime. However, the following risks are inherent to using Haven:

• Protocol risk due to exploits, errors, or failures (Haven, Marginfi, Jupiter)
• Infrastructure risks (e.g., oracle or RPC provider failures)
• Volatility decay (see Haven leverage risks)
• Unforeseen anomalies

Haven is marketed as “leverage trading without the risk of liquidation,” and while we achieve this in 99.9% of cases, we cannot guarantee absolute certainty due to the risks outlined above. Users are encouraged to carefully consider these risks when using Haven.

How much does it cost?

The cost of using Haven varies based on several factors, including position size, min/max LTV settings, and market conditions. Haven charges relative fees (percentage-based), which are detailed here.

How do the simulations work? Are they realistic?

Our simulation feature generates random price movement toward a specified target price. While these simulations offer insight, they are inherently limited in accuracy, as factors such as target price, time frame, and asset volatility influence results. Although no simulation can predict the future, running hundreds of simulations based on a well-considered target price can provide a rough picture of potential outcomes.

For best results, generate a large number of simulations (see the “confidence level”, the higher the better) to get a reliable estimate. We’ve incorporated realistic drawdowns to simulate the behavior of highly volatile assets, but simulation results can sometimes appear overly optimistic or pessimistic.

Remember, this feature is a tool to help users optimize their choices (such as min/max LTV settings) based on their target asset price, time frame, and other variables. It should not be taken as a definitive prediction of outcomes.

Why is the max leverage factor so low?

Haven is built on Marginfi, which determines the maximum leverage factor for each token pair to manage system-wide risk effectively. Additionally, with Haven’s leverage system, higher leverage doesn’t necessarily mean higher returns—refer to our Haven leverage risks section to learn more about volatility decay & how to minimize the risks.

Other questions

For any further questions or support, please join our Discord or Telegram and we will get back to you as soon as we can!