Margin
Satori enforces margin requirements for users -- an initial margin requirement to open and size-up positions, and a maintenance margin requirement to avoid liquidations. Margin can be added and removed at will above the initial margin.
Initial Margin
Initial margin = Initial Margin Fraction * Order price * Order Size
Initial margin refers to the required amount of collateral to open a position, determined by the initial margin rate and the value of the order.
The maximum supported leverage is 25x, so least 4% of the position value must be used as collateral upon opening a new position.
For example, with $100 of collateral, the maximum position size that can be put on is:
| Leverage | Position Size |
|---|---|
1x | $100 |
5x | $500 |
10x | $1,000 |
25x | $2,500 |
Maintenance Margin
The Maintenance Margin Amount for each position = Maintenance Margin Fraction * Entry Price * Position Size.
The maintenance margin refers to the minimum amount of collateral required to hold a position. The maintenance margin determines at what price your position will trigger forced liquidation.
If the value of a position falls below the maintenance margin level, it may be automatically closed out by the liquidation engine.
The maintenance margin rates are determined on a perps-token-pair basis:
| 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% |
For example, a long leveraged position in BTC-USD may be liquidated after the mark price dips below 1.5% above the bankruptcy price.
The denominated asset for all perpetual markets is USDT/USDC.
For example1, BTC Maintenance Margin Fraction is 1.5%:
A long leveraged position in BTC-USD may be liquidated after the mark price dips below 1.5% above the bankruptcy price.
If users use 20x Leverage.
When the mark price moves 5% in the unfavorable direction, it will go bankrupt. 5%*20X=100%;
When the mark price moves 3.5% in the unfavorable direction, it will go liquidate. 5%-1.5%=3.5%;
For example2, SOL Maintenance Margin Fraction is 3%:
A long leveraged position in SOL-USD may be liquidated after the mark price dips below 3% above the bankruptcy price.
If users use 20x Leverage.
When the mark price moves 5% in the unfavorable direction, it will go bankrupt. 5%*20X=100%;
When the mark price moves 2% in the unfavorable direction, it will go liquidate. 5%-3%=2%;
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