Margin Tiers
Margin tiers define the relationship between position size and required margin. Larger positions require proportionally more margin to protect the protocol from outsized risk.
Detailed margin tier documentation is coming soon. This will include:
- Tier definitions by position size
- Maintenance margin rates per tier
- Maximum leverage by tier
- Asset-specific tier configurations
How Margin Tiers Work
Tiered Structure
As position size increases, traders move into higher margin tiers with stricter requirements.
Progressive Margin
Margin requirements scale with position size to ensure adequate collateralization for large positions.
Risk Management
Tiers help manage systemic risk by limiting leverage for the largest positions.
Key Concepts
Initial Margin
The collateral required to open a position, determined by the position’s tier.
Maintenance Margin
The minimum collateral required to keep a position open without triggering liquidation.
Maximum Leverage
The highest leverage available decreases as position size increases through tiers.
