Leverage & Margin
In the current version, leverage is calculated based on Maintenance Margin, which a safety parameter ensuring that there is always enough collateral in the account to cover potential losses.
Maintenance Margin is defined as the minimum ratio of collateral to notional size that a specific market allows. It dictates. how much notional size leverage a trader (taker) can get.
Formula:
Maintenance requirement is based on the notional of a trader's position times the margin percentage requirement.
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If the collateral amount entered by the trader falls below this margin requirement, the trader's position will be liquidated.