> For the complete documentation index, see [llms.txt](https://docs.imperial.space/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.imperial.space/imperial-prime.md).

# Imperial Prime

Imperial Prime is our novel liquidity layer on top of all the venues we aggregate that allows traders to borrow extra collateral for their perp trades, giving them access to higher effective leverage and most flexible liquidation levels onchain.

The reason for building out Imperial Prime is to allow traders a one stop shop to access the most pairs and most leverage through one application.

## Whitepaper

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## How Does It Work?

A trader wants a $5,000 position using only $100 as collateral.\
The venues we route to only support up to 10x, which would give you a max position size of $1,000.\
However, with access to Prime Imperial can provide an additional $400 of collateral behind the trade.\
The underlying venue we route your trade to now sees:\
$500 collateral x 10x = $5,000 position

## Why is this better than the underlying venue offering that additional leverage?

Users can access larger positions with the same amount of their own collateral instead of having to have additional collateral.\
In addition, Prime can offer more flexible liquidation levels because of how it calculates risk differently from the underlying venue.\
Moreover, the venues we route to manage the risk of the entire market, including liquidity, volatility, directional exposure, and bad debt. Prime only manages the risk of its loan. So the only question our risk model needs to assess: Can we liquidate the position before the loaned collateral is at risk?

## What you should understand

Prime is not free money.\
Prime does not remove liquidation risk.\
Higher leverage is still very risky.\
Prime gives users more capital efficiency, not risk-free upside.\
Your points will determine the amount of collateral you can access via Prime (more on this soon).

## Closing

Prime is a game changer for traders using Imperial because you can now access more buying power, better capital efficiency and a more flexible trading experience all through one terminal.

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