# Margin

Satori enforces margin requirements for users, including an initial margin requirement to open and increase positions, as well as a maintenance margin requirement to avoid liquidation. Users can add or remove margin above the initial requirement as needed. 

#### Initial Margin <a href="#initial-margin" id="initial-margin"></a>

The initial margin is calculated as follows:

*Initial Margin = Initial Margin Fraction \* Order Price \* Order Size*

This represents the collateral required to open a position, determined by the initial margin rate and the value of the order.&#x20;

The maximum supported leverage is 25x, meaning at least 4% of the position value must be used as collateral when opening a new position.

Example:&#x20;

With $100 of collateral, the maximum position size is calculated based on the leverage applied.&#x20;

| Leverage | Position Size |
| -------- | ------------- |
| 1x       | $100          |
| 5x       | $500          |
| 10x      | $1,000        |
| 25x      | $2,500        |

#### Maintenance Margin <a href="#maintenance-margin" id="maintenance-margin"></a>

The maintenance margin is defined as:

*Maintenance Margin Amount = Maintenance Margin Fraction \* Entry Price \* Position Size*

This is the minimum collateral required to maintain a position. If the value of a position falls below the maintenance margin level, it may be automatically liquidated.&#x20;

Maintenance margin rates are determined on a per-token pair basis.&#x20;

For example:&#x20;

| Token     | Maintenance Margin Rate |
| --------- | ----------------------- |
| BTC       | 1.5%                    |
| ETH       | 1.5%                    |
| MATIC     | 1.5%                    |
| SOL       | 3%                      |
| BNB       | 3%                      |
| SUI       | 3%                      |
| DOGE      | 3%                      |
| ARB       | 3%                      |
| OP        | 3%                      |
| NEAR      | 3%                      |
| SCR       | 3%                      |
| 1000PEPE  | 3%                      |
| ZK        | 1.5%                    |
| USDE      | 0.8%                    |
| WIF       | 5%                      |
| WLD       | 3%                      |
| TON       | 3%                      |
| GOAT      | 5%                      |
| 1000DOGS  | 5%                      |
| NEIRO     | 5%                      |
| NOT       | 5%                      |
| MEW       | 5%                      |
| PEOPLE    | 5%                      |
| 1000SHIB  | 5%                      |
| 1000BONK  | 5%                      |
| 1000FLOKI | 5%                      |
| 10000WHY  | 5%                      |

Example 1: BTC Maintenance Margin Fratction is 1.5%&#x20;

* A long leveraged position in BTC-USD may be liquidated if the mark price falls below 1.5% above the bankruptcy price.&#x20;

&#x20; If users use 20x leverage: &#x20;

* A mark price decline of 5% results in bankruptcy (5% \* 20x = 100% loss).&#x20;
* A decline of 3.5% results in liquidation (5% - 1.5% = 3.5%).&#x20;

Example 2: SOL Maintenance Margin Fraction: 3%&#x20;

* A long leveraged position in SOL-USD may be liquidated if the mark price falls below 3% above the bankruptcy price.&#x20;

If users use 20x leverage:&#x20;

* A mark price decline of 5% results in bankruptcy (5% \* 20x = 100% loss).&#x20;
* A decline of 2% results in liquidation (5% - 3% = 2%).&#x20;