No, you put in 100 and then made 300, so your equity is 400 hence your leverage is down to 1.25x. Another way to see it is that the size of your loan is always

No, you put in 100 and then made 300, so your equity is 400 hence your leverage is down to 1.25x. Another way to see it is that the size of your loan is always 100, it doesn’t grow just because you made a lucky bet.