# Compound

Open positions generate yield as swaps occur within your selected price range. Defituna offers users the ability to compound this yield directly into your position, allowing for greater capital efficiency. \
Users can choose between two compounding strategies:

<figure><img src="/files/ypDXXG1xlSOrbfzd7cx2" alt=""><figcaption></figcaption></figure>

#### **Keep Leverage**

* When selected, your yield is compounded along with additional borrowed funds, maintaining your leverage unchanged.
* This means your position scales proportionally, increasing both your exposure and potential returns while keeping liquidation price points at the same level.

#### **Reduce Leverage**&#x20;

* With this option, your accumulated yield is added to your position as additional margin, without increasing the borrowed amount.
* Since yield is treated as margin, this reduces your overall leverage, lowers liquidation risk, and pushes the liquidation price further away.&#x20;
* This strategy is ideal for users looking to de-risk while growing their position steadily over time.

## Auto-compounding

You can enable or disable auto-compounding in two ways:

* **During position opening:** Enable **“Auto-compounding”** and choose whether you want to keep or reduce leverage.
* **For an existing position:** Use the **“Auto-compounding”** icon on the dashboard as mentioned [here](/dive-into-defituna/provide-liquidity/onboarding/monitoring-opened-lp-positions.md).

<figure><img src="/files/IJSv1N5LLzLcf0GUeZP4" alt=""><figcaption></figcaption></figure>

{% hint style="warning" %}
The **minimum threshold** to trigger an auto-compounding event is ≈$16, including any borrowed funds. Auto-compounding is not guaranteed.
{% endhint %}


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