Margining

Margining Overview

Margin calculations follow standard practices used by major centralized derivatives exchanges.

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Margin Modes

When opening a position, users must choose a margin mode:

• Cross Margin (default)

  Collateral is shared across all cross-margin positions, maximizing capital efficiency. Losses or gains from one position can affect others under the same mode.

• Isolated Margin

  Collateral is confined to a single asset. If the position is liquidated, it does not impact other positions — whether cross or isolated. Likewise, losses from elsewhere won’t affect this position.

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Initial Margin & Leverage

• Users can set leverage anywhere from 1x up to the asset’s maximum.

• The margin required to open a position is:

  Position Size × Mark Price ÷ Leverage

• In cross margin, the initial margin is locked and cannot be withdrawn.

• In isolated margin, users can adjust margin (add/remove) even after the position is opened.

For cross positions, unrealized PnL can be reused as margin for new positions. For isolated positions, unrealized PnL adds to that position’s margin.

Once a position is open, leverage is not automatically re-evaluated. Users must monitor their risk and can adjust by:

• Closing part or all of the position

• Adding margin (if isolated)

• Depositing USDC (if cross)

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Maintenance Margin & Liquidation

• Cross positions are liquidated if your total account value (including unrealized PnL) falls below the maintenance margin, which is 50% of the initial margin at max leverage.

• Isolated positions follow the same logic, but the calculation is limited to the margin and notional value of the individual position only.