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0 sats \ 1 reply \ @DeltaClimbs 17 Jun \ parent \ on: Ego Death Capital? bitcoin
That's stupid. With 3x leverage you will probably get liquidated to 0, not a good benchmark. 1.1-1.2x is a fair benchmark.
That's the point. With start-ups you probably also get liquidated.
That said, you should obv. adjust your benchmark leverage according to the risk profile of the fund (/start-up).
So. For example, if you invest into a single start-up, you should probably get a 90% failure rate. A simple approximation for leverage would be to check the historical price chart of bitcoin and see what kind of leverage will not get liquidated 10% of the time (historically). You can do other approximations as well.
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