Collateral provision is directly proportional to the margin ratio, and consequently, the degree of leverage attainable. Leverage affords increased exposure from the collateral offered. For instance, a collateral of 1 ETH could open a long position on ETH-PERP with 10x leverage, rendering a notional trade size of 10 ETH. Therefore, a 1% increase in ETH price yields a 10% gain on the collateral. However, a corresponding risk exists - a 10% drop in ETH price results in liquidation.