> For the complete documentation index, see [llms.txt](https://docs.wasabi.xyz/_/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.wasabi.xyz/_/overview/leverage-trade/looping-strategies.md).

# Looping Strategies

> ⚠️ Note: While looping amplifies potential rewards, it also increases risk. Looping positions are still leveraged positions and may result in liquidations during price drops.

## What is Looping?

Looping Markets are available for tokens that:

* Accrue yield directly into token value (e.g., $JLP)
* Provide claimable yield separately (e.g., $iBGT)

By longing these tokens, you gain:

* Price upside from the token itself
* Yield either built into the price or as a separate claimable reward
* Leverage to boost both price exposure and yield generation

## Opening a Looping Trade

1. **Choose a Looping Market:** Visit the [Trade](https://app.wasabi.xyz/) page, filter by "Looping" in the market selector pop-up, then select a token like $iBGT or $JLP.
2. **Select Token and Leverage:** Set your trade parameters, such as the amount, leverage, and the currency you open your position in.
3. **Place the Trade:** Open the trade. You’ll now be holding a leveraged long position on a yield-generating asset.

## Why Engage in Looping Strategies?

* **Amplify Native Yield:** Leverage lets you magnify both price movement and yield, especially on high-APY tokens.
* **Earn While Longing:** Unlike traditional longs, you don’t just wait for the price to go up - you’re earning yield the whole time.
* **Earn in Sideways Markets:** Looping lets you stay active even when prices stall. By longing yield-bearing tokens, you continue earning APY even if the token’s price stays flat, turning idle markets into active opportunities.

## Risks to Keep in Mind

* **Liquidation Risk:** Like any leveraged trade, if the market moves against your position, you could be liquidated.
* **APY May Vary:** APYs are variable and may change after you open a position.
* **Protocol-Specific Rewards:** Some tokens (like $iBGT) generate yield as separate, claimable rewards. These do not affect your collateral, liquidation price, or position health, but still accrue over time and can be claimed separately.


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