> For the complete documentation index, see [llms.txt](https://docs.h4.world/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.h4.world/earn-on-margin.md).
# Earn on Margin
Earn on Margin allows users to generate yield on their trading margin while keeping most of their capital available to trade.
For now, a single strategy is available. Additional strategies may become available in the future.
With the current strategy, approximately 80% of the deposited capital remains available for trading on H4.
***
### Strategy Overview
The strategy works by depositing stable-like assets into a yield-generating product, then borrowing stable-like assets against this position.
This allows users to:
* Collect yield on deposited capital
* Maintain high trading capital efficiency
* Keep most of their margin available for perpetual trading
The resulting position combines yield generation with active trading capital.
***
### Altura-Morpho Strategy
#### Overview
The current Earn on Margin strategy uses Altura and Morpho on HyperEVM.
The strategy flow is:
1. Cash is swapped to USDT0 then bridged to HyperEVM
2. USDT0 is supplied into the Altura AVLT vault
3. The AVLT receipt token is supplied into Morpho’s AVLT/USDT0 market
4. USDT0 is borrowed against the AVLT collateral with approximately 80% LTV
5. The borrowed USDT0 is bridged back to Hypercore and swapped back to Cash
This allows the user to collect:
* The AVLT vault APY
* Minus the Morpho borrow rate
while keeping most of the capital available to trade on H4.
***
### Risks
Earn on Margin strategies involve multiple risks that users must understand before using the feature.
#### Vault Risk
A loss affecting the AVLT vault would directly impact deposited capital.
#### Depeg Risk
If either AVLT or USDT0 loses its peg or market stability, the Morpho borrow position may be liquidated.
#### Borrow Rate Risk
If the Morpho borrow rate becomes higher than the AVLT yield, the strategy may generate negative returns.
#### Smart Contract Risk
The strategy depends on external smart contracts on both Altura and Morpho.
#### Network and Bridge Risk
The strategy relies on HyperEVM bridging and infrastructure. Network congestion, outages, or bridge failures may impact deposits or withdrawals.
***
### Leverage
Users can re-supply borrowed capital to increase exposure and yield generation.
This significantly increases:
* Systemic risk
* Liquidation risk
* Smart contract exposure
Leveraged looping strategies should only be used by advanced users who fully understand the associated risks.
***
### Withdrawing
Because the strategy uses borrowed capital, yield is only realized after the position is closed.
To withdraw funds:
1. The full current debt must be repaid
2. The collateral position is unlocked
3. Funds are bridged back and swapped to Cash
The final returned amount depends on:
* Accumulated yield
* Current borrow debt
* Market conditions
* Bridge and swap execution at withdrawal time
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