Leverage & Margin
Last updated: Mar 11, 2026
Leverage lets you control how much margin you put up for a given position size.
- Position size (notional) is what drives your profit and loss in USDT
- Leverage mainly changes how much margin is required, which changes your ROI and your liquidation risk
Cross-margin
All positions in a subaccount share a single collateral pool. This is cross-margin.
A profitable position can offset the margin requirements of a losing one, and your full balance backs all open positions simultaneously.
Quick definitions
- Notional (position value) = position size x entry price
- Initial margin (margin used) = notional / leverage
- Unrealized PnL (uPnL) depends on price movement and position size, not on leverage
Margin ratios
The system uses two core margin thresholds:
| Term | Formula | Description |
|---|---|---|
| Initial Margin Rate (IMR) | 1 / max_leverage | Minimum collateral to open or increase a position |
| Maintenance Margin Rate (MMR) | 1 / (2 × max_leverage) | Minimum collateral to keep a position open |
At 50x leverage, IMR is 2% and MMR is 1%.
How leverage affects uPnL
Leverage does not change uPnL for the same position size and the same price move.
- If you buy 1 BTC and price goes up by $100, your uPnL is +$100 whether you used 2x or 20x
- The difference is how much margin you used to hold that position
How leverage affects ROI
ROI is uPnL measured relative to the margin you used.
- ROI = uPnL / initial margin
Higher leverage uses less margin, so the same uPnL becomes a larger ROI. Lower leverage uses more margin, so the same uPnL becomes a smaller ROI.
Examples
These examples ignore fees and funding to keep the math simple.
Example 1 - Same uPnL, different ROI (long)
You open a long worth 3,000 USDT notional.
- 10x leverage
- Initial margin = 3,000 / 10 = 300 USDT
- 5x leverage
- Initial margin = 3,000 / 5 = 600 USDT
If price moves in your favor and uPnL is +30 USDT:
- ROI at 10x = 30 / 300 = 10%
- ROI at 5x = 30 / 600 = 5%
Same uPnL, different ROI because the margin used is different.
Example 2 - Losses work the same way
Same position: 3,000 USDT notional.
If uPnL becomes -30 USDT:
- ROI at 10x = -30 / 300 = -10%
- ROI at 5x = -30 / 600 = -5%
Example 3 - Short position behaves the same
You open a short worth 2,000 USDT notional.
- 20x leverage
- Initial margin = 2,000 / 20 = 100 USDT
If price drops and uPnL is +20 USDT:
- ROI = 20 / 100 = 20%
If price rises and uPnL is -20 USDT:
- ROI = -20 / 100 = -20%
Worked margin example
You deposit $2,000 USDT and open a BTC long:
| Field | Value |
|---|---|
| Entry price | $100,000 |
| Position size | 0.1 BTC |
| Notional value | $10,000 |
| Selected leverage | 10x |
| Tier minimum IMR | 2% |
| Initial margin used at 10x | $10,000 / 10 = $1,000 |
| Maintenance margin required | $10,000 × 1% = $100 |
The important distinction is that the tier minimum sets the lowest margin the system allows, while your selected leverage determines how much of your collateral you actually commit. In this example, the tier would allow a lower minimum, but choosing 10x means you commit $1,000 of margin to hold the position.
Account health
Your account health is driven by collateral, unrealized PnL, and total maintenance margin required.
health = (collateral + unrealized_pnl) / total_maintenance_margin_required- Health above 100% means you have buffer above initial requirements
- Health near maintenance means liquidation risk is increasing
- Health at maintenance means the account can become eligible for liquidation
Adjusting leverage
You can set leverage per market from the order entry panel. Decreasing leverage moves your liquidation price further away. Increasing leverage moves it closer.