Margin & Leverage

Initial Margin and Leverage

To open a leveraged position, users are required to provide an initial margin—a portion of the notional position value used as collateral. The amount of margin required determines the maximum leverage a user can take. For example, 2% initial margin enables 50x leverage.

Maintenance Margin & Liquidation

To keep a position open, users must maintain a minimum margin level, known as the maintenance margin. If the account equity falls below this threshold, the position is subject to liquidation. The maintenance margin increases progressively with position size, helping to manage systemic risk.

Cross Margin and Isolated Margin

In Cross Margin Mode, all available balance in a user’s margin account is shared across open positions. Losses in one position may be covered by the margin from profitable positions, reducing the risk of premature liquidation.

In Isolated Margin Mode, each position uses a dedicated margin amount. Losses are limited to the margin allocated to that specific position, providing better control over risk.

Users can switch between margin modes before opening a position.

Margin Tiers

StandX uses a tiered margin system to ensure robust risk management for large positions. As position size increases, the required maintenance margin increases and the maximum allowable leverage decreases.

BTC

StandX reserves the right to adjust margin tiers based on market volatility and risk conditions.