Is Gate Leverage Worry-Free worth participating in? Liquidation prevention mechanism, new user subsidies, and common questions explained

What Problems Does Gate Leverage Worry-Free Solve

Image: https://www.gate.com/smart-leverage

In the crypto market, many traders do not lose money because of incorrect market direction judgment, but are “liquidated” early due to short-term sharp fluctuations. The forced liquidation mechanism in traditional leverage or perpetual contracts is the core source of this issue.

The launch of Gate Leverage Worry-Free directly addresses this pain point. This product uses a structured approach, allowing users to hold positions without worrying about forced liquidation, enabling them to focus more on market trend judgment.

Does Leverage Worry-Free Really “Never Liquidate”

It should be clarified that Gate Leverage Worry-Free does not trigger forced liquidation during the holding period, but this does not mean there is no risk.

The maximum loss of the product is limited to the amount of the subscription principal for a single position. If, at settlement, the market direction is completely opposite to expectations, users may still lose all their invested funds. However, unlike traditional contracts, there will be no margin calls or liquidation debts.

How to Understand the 100% APR Subsidy for New Users

During the initial launch event, Gate offered a 100% APR (annualized) cash subsidy to users subscribing to Leverage Worry-Free for the first time.

This subsidy is unrelated to trading results; whether the order ends up profitable or at a loss, it will be calculated based on the subscription principal and holding days. The subsidy cap is 20 USDT and will be distributed to the spot account in GT tokens after settlement.

From an experience perspective, this is equivalent to providing a certain level of “risk buffer” for the first trade.

Is Leverage Worry-Free Suitable for Beginners or Experienced Traders

Gate Leverage Worry-Free is not a completely beginner product. Although the no-force-liquidation mechanism reduces operational complexity, the product still involves leverage and market judgment.

It is more suitable for:

• Users with a clear market direction judgment who do not want to monitor the market constantly
• Contract traders who have experienced “pinning forced liquidation” affecting their trading experience
• Trend traders who want to control maximum losses

Advantages and Disadvantages Compared to Traditional Contracts

Compared to perpetual contracts, Gate Leverage Worry-Free offers advantages in stability and predictability, but is relatively less flexible. Contracts are more suitable for short-term trading, while Worry-Free is more inclined toward medium- to short-term trend betting.

Risks to Note Before Participating

Gate Leverage Worry-Free is a non-capital-protected product; incorrect market judgment can still lead to capital loss. Users should fully understand the product’s settlement logic and reasonably control position sizes before participating.

Original link: https://www.gate.com/learn/articles/is-gate-smart-leverage-worth-participating-in-liquidation-free-mechanism-new-user-subsidies-and-faqs-explained