Margin
Last updated
Last updated
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.
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.
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:
With $100 of collateral, the maximum position size is calculated based on the leverage applied.
Leverage | Position Size |
---|---|
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.
Maintenance margin rates are determined on a per-token pair basis.
For example:
Example 1: BTC Maintenance Margin Fratction is 1.5%
A long leveraged position in BTC-USD may be liquidated if the mark price falls below 1.5% above the bankruptcy price.
If users use 20x leverage:
A mark price decline of 5% results in bankruptcy (5% * 20x = 100% loss).
A decline of 3.5% results in liquidation (5% - 1.5% = 3.5%).
Example 2: SOL Maintenance Margin Fraction: 3%
A long leveraged position in SOL-USD may be liquidated if the mark price falls below 3% above the bankruptcy price.
If users use 20x leverage:
A mark price decline of 5% results in bankruptcy (5% * 20x = 100% loss).
A decline of 2% results in liquidation (5% - 3% = 2%).
Token | Maintenance Margin Rate |
---|---|
1x
$100
5x
$500
10x
$1,000
25x
$2,500
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%