The Leverage Optelion AI allows users to enter long or short positions on a Uniswap trading pair. Users can specify their position type and trade amount. The contract calculates position values based on the current token price. When exiting, profits or losses are adjusted using leverage. Long positions profit from price increases, while short positions profit from price decreases. The contract provides flexibility in position types and leveraged gains, enhancing trading strategies within a decentralized environment.