Margin System

Cross Margin & Isolated Margin

• All accounts use cross margin by default:

  • Your entire account balance (including spot, perpetual, and other positions) is used as collateral for all open positions.
  • Losses and profits are shared across all positions, reducing the risk of liquidation for any single trade.

• Isolated margin via sub-accounts:

  • If you want to isolate risk, you can create sub-accounts.
  • Each sub-account acts as a separate margin account, so losses in one do not affect the others.

Progressive Margin (Tiered Margin System)

We use a progressive margin system (also called tiered margin), where the required margin increases as your position size grows. This helps protect the platform and users from excessive risk on large positions.

Example: BTCUSD Perpetual

Tier	Position Bracket (USD)	Max Leverage	Maintenance Margin Rate	Maintenance Amount (USD)
1	0 - 50,000	125x	0.40%	0
2	50,000 - 600,000	100x	0.50%	50
3	600,000 - 3,000,000	75x	0.65%	950
4	3,000,000 - 12,000,000	50x	1.00%	11,450
5	12,000,000 - 70,000,000	25x	2.00%	131,450

• Small positions:
  • You can use high leverage (up to 125x) and need less margin.
• Large positions:
  • The required margin increases, and maximum leverage decreases, to ensure system safety.

How Margin Is Calculated

• Collateral Value:
  Each token in your account has a collateral factor (e.g., USDC = 1.0, BTC = 0.95, etc.).
  The total collateral value is the sum of all token balances multiplied by their respective collateral factors.

  Collateral Value = Σ (Token Balance × Token Price × Collateral Factor)

• Borrowed Tokens:
  Each borrowed token has an initial margin factor (for opening new positions/borrows) and a maintenance margin factor (for ongoing risk checks).

• Positions and Orders:

  • All open positions and active orders require margin.
  • The required margin for each is calculated using the notional value and the relevant margin factor for that asset.

• PnL (Profit and Loss):

  • Realized and unrealized PnL from all positions is automatically added to your collateral balance.
  • This means profits increase your available margin, while losses reduce it.

Example Calculation

Suppose you have:

• 1 BTC (collateral factor 0.95, price $30,000)
• 10,000 USDC (collateral factor 1.0, price $1)
• A long position in ETH-PERP (notional $20,000, initial margin factor 0.10, maintenance margin factor 0.05)
• Unrealized PnL: +$500

Step 1: Collateral Value

• BTC: 1 × $30,000 × 0.95 = $28,500
• USDC: 10,000 × $1 × 1.0 = $10,000
• Total Collateral = $28,500 + $10,000 = $38,500

Step 2: Add PnL

• Total Collateral + PnL = $38,500 + $500 = $39,000

Step 3: Required Margin for ETH-PERP Position

• Initial Margin = $20,000 × 0.10 = $2,000
• Maintenance Margin = $20,000 × 0.05 = $1,000

Step 4: Margin Check

• If your collateral value falls below the maintenance margin requirement, your position may be liquidated.

Key Points

• Collateral factors determine how much of each token's value counts toward your margin.
• Margin requirements for positions and borrows depend on the asset's margin factors.
• PnL is always added to your collateral, increasing or decreasing your available margin in real time.

How It Works

• As your position size increases, you move into higher tiers.
• Each tier has a higher maintenance margin rate and a higher minimum margin requirement.
• If your margin balance falls below the required maintenance margin, your position may be partially or fully liquidated.

Why Progressive Margin?

• Protects the platform and users from large, risky positions.
• Encourages responsible leverage usage.
• Reduces the risk of cascading liquidations during volatile markets.

Summary

• All accounts are cross-margined by default.
• Isolated margin is available via sub-accounts.
• Margin requirements increase with position size (progressive/tiered margin).
• Higher leverage is available for small positions; larger positions require more margin and have lower leverage.