Margin Modes
Our platform offers two margin modes for perpetual trading: cross margin and isolated margin.
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Cross Margin: In cross margin mode, margin is shared among open positions. Gains and losses from different positions can offset each other, reducing the risk of liquidation.
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Isolated Margin: In isolated margin mode, each position has a specific amount of margin assigned to it. Losses are limited to the margin allocated to that particular position, preventing other positions from being affected.
We offer an account-level margin mode setting that applies to all perpetual symbols. Users also have the option to customize margin mode preferences by symbols. It's possible to open positions in both margin modes simultaneously on the same perp symbol. Margin modes work seamlessly with position modes, allowing users to have up to four live positions on the same symbol at a given time: a cross long, cross short, isolated long, and isolated short position under hedge mode.
Supported Collateral Assets
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Cross Margin: Supports multiple collateral assets. Users can view eligible collateral for their account in the 'Manage Collateral' section on the Margin & Futures page.
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Isolated Margin: Only USDT can be used as the margin asset.
Initial Margin Calculation
Initial margin is the amount of collateral value required to open a position for perp trading.
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Cross Margin: The initial margin required for positions and pending orders is calculated as:
Initial Margin = Open Notional * Initial Margin Ratio
where
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- Open Notional = max (Long Notional valued at Mark Price, Short Notional valued at Mark Price) assuming all pending orders are executed
- Initial Margin Ratio = max (1 / leverage, IMR factor * (Open Notional)^{2/3} + 0.06%)
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Isolated Margin: Initial margin required for placing the order is calculated as:
Initial Margin = Order Quantity * Order Price * (1/leverage + 0.06%)
Maintenance Margin Calculation
Maintenance margin is the amount of collateral value needed to prevent your positions from being liquidated. There are slight differences in the calculations between one-way mode and hedge mode.
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One-way Cross Margin and One-way Isolated Margin:
Maintenance Margin = Position Notional * Maintenance Margin Ratio
where:
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Maintenance Margin Ratio = max(0.6 / leverage, 0.6 * IMR factor * (Position Notional)^{2/3} + 0.03%)
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Hedge Mode Cross Margin:
Maintenance Margin = Position Notional * Maintenance Margin Ratio
where:
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Position Notional = max(Long Notional valued at Mark Price, Short Notional valued at Mark Price)
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Maintenance Margin Ratio = max(0.6 / leverage, 0.6 * IMR factor * (Position Notional)^{2/3} + 0.03%)
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Hedge Mode Isolated Margin:
Maintenance Margin = Position Notional * Maintenance Margin Ratio
where:
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Maintenance Margin Ratio = max(0.6 / leverage, 0.6 * IMR factor * (Position Notional)^{2/3} + 0.03%)
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Margin Ratio
Margin ratio is the ratio of collateral value to position notional. It measures the risk level of your positions. The lower the margin ratio, the higher the risk.
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Cross Margin: Margin ratio is shared among cross margin positions. A significant loss in one cross position may lead to liquidation in other cross positions.
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Isolated Margin: Margin ratio is specific to individual isolated margin positions. Significant movement in one isolated position will not impact other isolated or cross positions.
If the margin ratio drops below the corresponding maintenance margin ratio, the positions will start getting liquidated.
Adjusting Margin
For isolated margin positions, the margin required to open the position will be earmarked and locked up. Users have the option to adjust the margin by either increasing or decreasing it:
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Increasing Margin: Lowers the risk of liquidation.
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Decreasing Margin: Increases the risk of liquidation but cannot be reduced below the initial margin requirement.
Adjusting Leverage
Leverage is associated with positions and can be adjusted as long as the margin check is successful. Positions are defined by symbol, position side, and margin mode.
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Isolated Margin: Increasing leverage results in a lower initial margin. The system will not automatically reduce the margin, but you can withdraw it from the position if desired. Reducing leverage will mean a higher initial margin requirement, and the system may top up the margin for you.
Maximum Leverage
Each perp symbol has a predefined leverage range to choose from. The maximum leverage is determined mainly based on the symbol's liquidity and order book depth. The platform reserves the right to change them at any time without prior notice.
Maximum Notional Size
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Cross Margin: The size of the position that can be opened depends on your available margin. However, the initial margin required to open larger positions will increase significantly if it exceeds a threshold due to the IMR factor.
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Isolated Margin: The maximum position size is defined as:
For BTC and ETH perp, the maximum position size is 100,000 USDT if the leverage is higher than 50x for both cross and isolated margin.