Core Viewpoint - The article emphasizes that the leverage ratios in brokerage financing are a result of institutional regulations rather than subjective decisions by platforms, highlighting the importance of understanding the underlying mechanisms that determine these ratios [1][12]. Summary by Sections Leverage Ratios and Institutional Framework - Leverage in brokerage financing is constrained by a margin ratio system, with a common maximum leverage of 2 times, indicating a trend towards stability within the industry [3][4]. - Different brokerages, such as Citic Securities and Hengxin Securities, exhibit minor differences in financing leverage due to these regulatory frameworks [3]. Characteristics of Different Structures - Real trading platforms allow for more flexible leverage ranges, supported by diverse risk control mechanisms tailored to specific structural characteristics [5][6]. - The transparency of the funding path is crucial for high leverage to exist, as it isolates risks effectively [7]. Key Indicators for Safety - The safety of leverage is determined by three main indicators: the setting of risk control thresholds, the automation of risk control, and the existence of a verifiable trading chain [8][9]. - A lower risk tolerance or novice investors are advised to use conservative leverage (1 to 1.5 times), while more experienced investors may opt for higher leverage based on their trading strategies [10][12]. Risk Control and Transparency - Effective risk control mechanisms include public warning lines and risk lines, with a typical warning line around 70% and a risk line around 80% [11]. - The article suggests that the safety of leverage is contingent upon meeting specific criteria related to transparency, automation, and verifiability of transactions [13].