# Cat Mode (High-Leverage)

Cat Mode on Lynx offers traders the ability to supercharge their positions with high-leverage (250x-500x), with a trader-friendly fee model: no fees on losses, only a small percentage of your profits.

Initially, Cat Mode will be available for BTC/USD and ETH/USD trading pairs, with more pairs added over time.

<figure><img src="https://1190515300-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FcattEyXT55xEtBJKXNBN%2Fuploads%2F3XCjK9j5Wa80tDK3xRMN%2Fimage.png?alt=media&#x26;token=a39e589e-8137-4105-935e-c3d887410578" alt="Trading BTC/USD on Lynx with 500x leverage"><figcaption><p>Trading BTC/USD on Lynx with 500x leverage</p></figcaption></figure>

### Key Features

* **High Leverage**: Trade with **250x - 500x leverage**.
* **No Open/Close Fees**: Enter and exit positions without incurring standard open or close fees.
* **Performance Fee Only on Profits**: A performance fee applies only to winning trades (ie. trades with [positive Trading P\&L](https://lynx-finance.gitbook.io/lynx-finance/community/glossary#trading-profit-and-loss-trading-p-and-l)). For the current fee rate, see the app interface.
* **TP/SL/Liquidation Rules:** Take profit, stop loss, and liquidation mechanics function normally in Cat Mode.

### Minimum Cost Per Position

Lynx applies a **Min. Cost** to ensure that the platform’s services are sustainable and align with responsible trading practices:

* **Minimum Cost Mechanism**:
  * **Winning Trades**: If the performance fee on a winning trade is less than the minimum cost, Lynx will collect a small additional amount to meet the minimum cost threshold.
  * **Losing Trades**: If losses are less than the minimum cost, a small fee is also applied to meet this threshold.

For the current minimum cost on any given asset, check the app interface as shown here:

<figure><img src="https://1190515300-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FcattEyXT55xEtBJKXNBN%2Fuploads%2F1JyShgfb5aM9jgEseCBy%2Fmcost.png?alt=media&#x26;token=a52a962a-5357-485d-8a46-d94f6dbcab02" alt=""><figcaption><p>Min Cost is at the bottom right side of the screen, shown in USDC</p></figcaption></figure>

### How to Use Cat Mode

1. **Access Cat Mode**: Open the Lynx Finance trading interface and select a trading pair that supports Cat Mode (initially only BTC/USD and ETH/USD).
2. **Enter Collateral Amount:** Select which asset to use as collateral and specify the amount.
3. **Set Leverage**: Choose a leverage ratio between 250x and 500x.
4. **Enter Trade**: Place your trade with no open/close fees.
5. **Monitor and Close Position**: Track your position within the app, and close when ready. Any performance fee on profits will only be applied upon closing a successful trade.

### Important Considerations

* **High-Risk Mode**: Due to the high leverage available in Cat Mode, traders should manage risks carefully.
* **Minimum Cost Per Position**: Be mindful of the minimum cost, which will apply even if losses are minimal.

By enabling high-leverage trades with no upfront fees, **Cat Mode** is designed for traders who want maximum exposure with minimal entry costs, provided they understand the risks involved.