Genuinely curious- In what sense is the risk calculated? I understand that the leverage factor is known but fundamentally isn’t this still just a bet that eth will rise? And if it falls then won’t the loss be multiplied by the same leverage factor?

Obviously you can research the eth market and form a view but you can also research horse racing form and the odds themselves should be a fair calculation indicator if the betting market is working well - so it seems fair to suggest that this is in the same category as a horse racing bet.