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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

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How Margin Tiers Work

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Tiered Structure

As position size increases, traders move into higher margin tiers with stricter requirements.

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Progressive Margin

Margin requirements scale with position size to ensure adequate collateralization for large positions.

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Risk Management

Tiers help manage systemic risk by limiting leverage for the largest positions.

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Key Concepts

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Initial Margin

The collateral required to open a position, determined by the position’s tier.

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Maintenance Margin

The minimum collateral required to keep a position open without triggering liquidation.

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Maximum Leverage

The highest leverage available decreases as position size increases through tiers.