Position breakdown
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Fixed debt, not fixed leverage: why this isn't a perp and isn't a 3x token
xPOSITION works by minting a fixed amount of fxUSD debt against your ETH collateral the moment you open the position. If you deposit collateral worth $V0 and choose 4x leverage, the protocol mints just enough fxUSD debt D0 so that V0 ÷ (V0 − D0) equals 4. That debt then sits still in dollar terms — it doesn't reset daily like a 3x leveraged token, and there's no funding payment changing hands every few hours like on a perpetual future. Perps keep price near spot by charging longs when the perp trades rich; xPOSITION keeps the system solvent through fxUSD's own stability-pool and rebalance mechanics instead, so holding a position costs you nothing beyond gas and any rebalance/liquidation event.
The trade-off: because debt is fixed rather than reset, your effective leverage isn't constant either. As ETH falls, collateral value V1 shrinks toward D0, so V1 ÷ (V1 − D0) — your leverage right now — climbs well above your starting 4x. As ETH rises, leverage drifts back down toward 1x. That's structurally different from a daily-rebalanced token, which is forced back to a fixed multiple every day (and bleeds value from that reset in choppy markets), and different from a perp, where leverage is whatever margin ratio you maintain and funding is a running cost regardless of direction.
Two thresholds matter as leverage drifts up: a rebalance LTV, where keepers can partially trim the position (burn some debt, sell some collateral) to pull LTV back down without fully closing you out, and a higher liquidation LTV, where the position is closed outright. This calculator computes both trigger prices from your inputs so you can see exactly how much room you have before either one fires.
FAQ
What is f(x) Protocol's xPOSITION and how is it different from a perpetual future?
xPOSITION is a leveraged ETH (or other collateral) position on f(x) Protocol that mints fxUSD debt against your collateral instead of borrowing margin from a counterparty order book. You pick a leverage multiple, deposit collateral, and the protocol mints a fixed amount of fxUSD debt so your starting leverage equals your chosen multiple. Because the debt is a fixed fxUSD amount rather than a percentage that resets, there is no funding rate paid or received — unlike a perpetual future, where longs and shorts exchange funding every few hours to keep the perp price near spot.
Why is my fxUSD debt fixed, and why does that make my return exactly linear?
At open, debt D0 is set so that collateral value V0 divided by (V0 minus D0) equals your chosen leverage. That debt then stays fixed in dollar terms until a rebalance or liquidation event touches the position — it isn't compounded daily like a 3x leveraged token, and it doesn't decay from volatility drag the way daily-rebalanced products do. Because D0 is constant, your position's dollar P&L moves 1-for-1 with the change in collateral value, which works out to almost exactly leverage × the percentage move in the underlying asset — clean linear leverage, not compounding, as long as no rebalance has fired.
What triggers a rebalance versus a full liquidation?
As price falls, your position's loan-to-value (debt ÷ collateral value) rises. f(x) Protocol defines a rebalance LTV threshold below the liquidation LTV threshold — crossing the rebalance line lets keepers partially unwind the position (burning some fxUSD debt and selling collateral) to pull LTV back to a safer level, avoiding a full liquidation. Only if price keeps falling past the higher liquidation LTV threshold does the position get fully liquidated. This calculator lets you set both thresholds so you can see the gap between "partially trimmed" and "fully closed out."
Does xPOSITION avoid the volatility decay of daily-rebalanced leveraged tokens (like a 3x ETH token)?
Yes, structurally. Daily-rebalanced leveraged tokens reset their exposure every day to maintain a constant multiple, which means choppy sideways price action erodes value even if the asset ends flat — classic volatility decay. xPOSITION's debt only changes on a rebalance or liquidation event, not on a fixed daily schedule, so a position that never crosses its rebalance threshold behaves like simple fixed-debt leverage: your leverage ratio actually drifts (rising as price falls, falling as price rises) rather than being forced back to a constant multiple, which removes the specific decay mechanism that daily-reset tokens suffer from.
What risks does this calculator not capture?
This model shows the core collateral/debt/leverage mechanic, but real xPOSITION risk also includes: fxUSD peg stability (the whole system depends on fxUSD holding $1, which depends on stability-pool depth and market conditions), oracle price risk feeding the protocol, keeper execution timing and gas cost during a rebalance, and smart-contract risk in the f(x) Protocol contracts themselves. Treat the rebalance and liquidation prices here as directional estimates from the leverage mechanic, not a guarantee of the exact on-chain trigger price.