TradingPerpetuals
Margining
Margin system mechanics including account structure, leverage, and position management
Margining
MuchFi's margin system ensures protocol solvency while providing traders with flexible position management options.
Key Concepts
| Term | Formula |
|---|---|
| Margin Balance | Collateral deposited + Realized PnL - Settled Funding - Settled Fees |
| Account Equity | Margin Balance + Unrealized PnL (across all positions) |
| Maintenance Margin | Sum of (Maintenance Rate × Position Size × Mark Price) |
| Available Margin | Account Equity - Maintenance Margin |
Account Health Condition
Account Equity ≥ Account Maintenance Margin TotalAccount Structure
MuchFi offers two margin modes:
Isolated Margin
- Each position has dedicated collateral
- Losses are confined to that position's margin
- Position liquidation doesn't affect other positions
Cross Margin
- All positions share margin
- Entire account balance supports any position
- More capital efficient but higher risk exposure
Leverage Management
Users can set leverage between 1x and the asset maximum. The system enforces account-level solvency in cross-margin accounts rather than exact per-position leverage.
Position Operations
Opening Positions
Maximum cost calculation:
Max Cost = Opened Notional / LeverageClosing Positions
Maximum payout calculation:
Max Payout = Closed Notional / LeverageDeposits and Withdrawals
Deposits
Deposits always pass health checks. Adding collateral improves account health.
Withdrawals
Withdrawals must maintain account health:
Account Equity After Withdrawal ≥ Total Maintenance Margin After WithdrawalA collateral floor applies to prevent insufficient reserves for open positions.