> ## Documentation Index
> Fetch the complete documentation index at: https://docs.architect.exchange/llms.txt
> Use this file to discover all available pages before exploring further.

# Margin & Leverage

## Margin Requirements

Each product has published **initial** and **maintenance** margin levels:

* **Initial Margin** – required to open a position
* **Maintenance Margin** – required to keep it open

## Leverage

Leverage depends on margin levels and **varies by product**.

## Accepted Collateral

Initially **USD**, with support for **stablecoins** (e.g., USDC).\
All contracts remain **USD-denominated**.

## Liquidation

Triggered when account collateral falls **below maintenance margin**, resulting in position closure.

Liquidations are triggered by automated monitoring for margin breaches combined with human manual review, providing an important safeguard to ensure a consistent and reliable liquidation processes.

## Margin Calls

Issued when collateral approaches maintenance margin.\
Brokers may have additional margin call processes.

## Avoiding Liquidation

Maintain collateral above maintenance margin by:

* Depositing more funds
* Reducing open positions

## Margin Calculation Example

I have a new account and have deposited \$500. Let's say EXAMPLE-PERP is trading at a price of \$5.25, with an Initial Margin Requirement of 8% (12.5x leverage) and a Maintenance Margin Requirement of 4% (25x leverage).

I want to buy 1,000 contracts of EXAMPLE-PERP. In order to send an order of quantity 1,000, the Initial Margin Requirement for my order would be 1,000 contracts \* \$5.25 \* 8% = \$420. Thus, my account would have to have at least \$420 of account equity in excess of the current initial margin utilization in order to be able to send this order. Since my current account equity is \$500 and my current initial margin utilized is \$0 (I have no other orders or positions), I have \$500 of initial margin available and can successfully send this order.

Once my order is filled, and now I have a position of long 1,000 contracts of EXAMPLE-PERP. My account equity will be \$500, my initial margin requirement is \$420 (1,000 contracts \* \$5.25 price \* 8% contract's initial margin requirement), and my maintenance margin requirement is \$210 (1,000 \* \$5.25 \* 4%). I have \$80 of remaining initial margin available to send additional orders if I so desire. I must maintain an account equity of at least \$210 in order to avoid liquidation.

Let's say now the price of EXAMPLE-PERP drops to \$4.90. I will have an unrealized loss of \$350: 1,000 contracts \* (\$4.90 - \$5.25) = -\$350. My account equity thus will be \$150. My initial margin requirement is \$392 (1,000 contracts \* \$4.90 \* 8%) and my maintenance margin requirement is \$196 (1,000 contracts \* \$4.90 \* 4%). Because my available initial margin is less than \$0 (\$150 - \$392 \< \$0), I will be unable to increase my position size and thus cannot send new buy orders. Because my account equity is below the maintenance margin required (\$150 \< \$196), my EXAMPLE-PERP position will be subject to liquidation.