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%
DOGE	3%
ARB	3%
OP	3%
NEAR	3%
1000PEPE	3%
ZK	3%

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%;