Does the AI use leverage?
Only where leverage exists, on perps, and only inside your limits. Prediction-market bets are never leveraged: their worst case is losing the stake. On perps, your CEO can use modest leverage (like 2–3x) with tight sizing and stops, if your rules allow it.
Two rooms, two rules
On prediction markets, there's no leverage to use, a bet can only lose what it cost. On perps, leverage is part of the instrument, which is why your CEO treats them with tighter sizing and stop-losses.
Modest by default, yours to cap
Think 2–3x with a tight stop, a tool for expressing a strong view, not a casino lever. And it's governed by your rules: cap the leverage, cap the perp allocation, or turn perps off entirely for an unleveraged fund.
Leverage cuts both ways: it multiplies wins and losses alike, and a leveraged position can be liquidated. Your outer wall still holds, losses never exceed your wallet But treat perps as the sharp tool they are.