High leverage trading (such as 125x) can amplify profits, but it also amplifies risks. A 4% profit can ultimately lead to an 8.5% loss in assets for the following reasons:

First, leverage can magnify price fluctuations; if the direction is correct, the profits can be substantial, but if incorrect, the losses can far exceed the initial investment;

Second, one must consider the "compounding effect" of leverage, as profits may be "devoured" by trading, slippage, and other factors or hidden costs such as fees and funding costs;

Third, forced liquidation may occur during periods of loss, or due to severe market fluctuations leading to insufficient funds to maintain margin, resulting in forced liquidation; under high leverage, even small market fluctuations can significantly amplify losses.