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When the leverage option is checked, you will be leveraging your interest-bearing token positions.
Take the wsSPA leverage for example. When you turn on leverage, you will be using the borrowed Lambda to buy more wsSPA (Figure 1).
You will be able to see your borrowed Lambda, as well as your wsSPA position, on the Bento box contract (Figure 2).
When the leverage is turned on, you will no longer receive Lambda in your wallet at the end of the transaction. Instead, your borrowed Lambda will be used to create a leveraged long position for your interest-bearing Token.
To deleverage, or unwind your leveraged position, simply pay back the borrowed Lambda on the "repay" tab and choose the collateral amount to remove.