Margin

Margin Requirements

Astros enforces specific margin requirements for traders to effectively manage risk and maintain trading stability. Users must fulfill two types of margin requirements:

• Initial Margin to open or increase positions.

• Maintenance Margin to keep positions open and prevent liquidation.

Traders can freely adjust their margin balance above these requirements according to their risk tolerance and market conditions.

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Initial Margin

The Initial Margin is the collateral required to open or expand a position, calculated as follows:

$$\text{Initial Margin} = \text{Initial Margin Fraction} \times \text{Order Price} \times \text{Order Size}$$

The maximum leverage offered on Astros perpetual contracts is 25x, which implies that traders must deposit at least 4% of the position value as collateral when initiating a new position.

Example:

If a trader deposits $100 collateral and applies the maximum leverage (25x), the maximum position size can be calculated as:

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Maintenance Margin

The Maintenance Margin is the minimum collateral required to maintain an open position and prevent liquidation. The calculation formula is:

$$\text{Maintenance Margin Amount} = \text{Maintenance Margin Fraction} \times \text{Entry Price} \times \text{Position Size}$$

Positions falling below this maintenance margin threshold risk automatic liquidation.

Note: Maintenance margin rates vary according to specific token pairs.

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Margin Modes

Astros offers two distinct margin modes to accommodate traders' different risk management preferences:

1. Isolated Margin Mode (Default Mode)

In Isolated Margin Mode, each position's margin is independent of the trader's overall account balance. Losses from liquidation are limited strictly to the margin allocated to that individual position, effectively capping the trader's maximum potential loss.

2. Cross Margin Mode

Cross Margin Mode allows positions to utilize the total available balance of the trading pair account as collateral. This approach helps prevent liquidation by dynamically allocating funds across positions within the same trading pair. However, liquidation under cross margin mode carries a higher risk, potentially resulting in the total loss of all collateral allocated within the all trading pair.

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Margin Mode Selection and Restrictions

• Users may select only one margin mode per perpetual trading pair.

• To switch between margin modes or adjust existing orders:

  • All open positions and orders related to the trading pair must first be closed or canceled.

This constraint ensures clear risk management and consistent collateralization. Astros