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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.


MaximumΒ leverage=1maintenance%\text{Maximum leverage} = \frac{1}{\text{maintenance\%}}

Maintenance requirement is based on the notional of a trader's position times the margin percentage requirement.


If the collateral amount entered by the trader falls below this margin requirement, the trader's position will be liquidated.