Leverage & Margin
What is leverage and how is it applied?
Last updated
What is leverage and how is it applied?
Last updated
When trading NFTs on NFEX perpetual swaps, buyers don't need to put up the entire value of the underlying NFT. Instead, traders can buy NFTs using only a fraction of the underlying value in ETH as collateral. NFEX provides leverage for all perpetual contracts, with ETH as the quote asset for all markets. We currently support cross-margin mode, allowing accounts to open multiple positions that share the same collateral. The maximum leverage available depends on the notional value of the positions, with lower leverage for larger positions.
At NFEX, leverage is determined by the initial margin and the maintenance margin.
The Initial Margin is the minimum amount of funds required to open a position.
Initial Margin Calculation:
Where:
The Maintenance Margin is the minimum fraction of margin required to prevent liquidation. If the position collateral falls below the maintenance margin, the position will be liquidated.
The maintenance margin is calculated based on the position's notional value at different tiers. The maintenance margin rate and tiered adjustment factor increase with the position size, ensuring larger positions have higher margins to prevent liquidation.
Maintenance Margin Calculation:
Where:
5
2.00%
1.00%
50
50
5.00%
2.50%
20
75
10.00%
5.00%
10
100
20.00%
5.00%
5
125
50.00%
5.00%
2
5
2.00%
1.00%
50
50
5.00%
2.50%
20
75
10.00%
5.00%
10
100
20.00%
5.00%
5
125
50.00%
5.00%
2
5
2.00%
1.00%
50
15
5.00%
2.50%
20
30
10.00%
5.00%
10
45
20.00%
5.00%
5
60
50.00%
5.00%
2
1
2.00%
1.00%
50
5
5.00%
2.50%
20
15
10.00%
5.00%
10
20
20.00%
5.00%
5
25
50.00%
5.00%
2
1
2.00%
1.00%
50
5
5.00%
2.50%
20
15
10.00%
5.00%
10
20
20.00%
5.00%
5
25
50.00%
5.00%
2
1
2.00%
1.00%
50
5
5.00%
2.50%
20
15
10.00%
5.00%
10
20
20.00%
5.00%
5
25
50.00%
5.00%
2
1
2.00%
1.00%
50
5
5.00%
2.50%
20
15
10.00%
5.00%
10
20
20.00%
5.00%
5
25
50.00%
5.00%
2
1.5
2.00%
1.00%
50
3
5.00%
2.50%
20
7.5
10.00%
5.00%
10
15
20.00%
5.00%
5
22.5
50.00%
5.00%
2
1
2.00%
1.00%
50
5
5.00%
2.50%
20
15
10.00%
5.00%
10
20
20.00%
5.00%
5
25
50.00%
5.00%
2
5
2.00%
1.00%
50
50
5.00%
2.50%
20
75
10.00%
5.00%
10
100
20.00%
5.00%
5
125
50.00%
5.00%
2
5
2.00%
1.00%
50
15
5.00%
2.50%
20
30
10.00%
5.00%
10
45
20.00%
5.00%
5
60
50.00%
5.00%
2
1
2.00%
1.00%
50
5
5.00%
2.50%
20
15
10.00%
5.00%
10
20
20.00%
5.00%
5
25
50.00%
5.00%
2
5
2.00%
1.00%
50
15
5.00%
2.50%
20
20
10.00%
5.00%
10
25
20.00%
5.00%
5
30
50.00%
5.00%
2
1
2.00%
1.00%
50
5
5.00%
2.50%
20
15
10.00%
5.00%
10
20
20.00%
5.00%
5
25
50.00%
5.00%
2
1
2.00%
1.00%
50
5
5.00%
2.50%
20
15
10.00%
5.00%
10
20
20.00%
5.00%
5
25
50.00%
5.00%
2
1
2.00%
1.00%
50
5
5.00%
2.50%
20
15
10.00%
5.00%
10
20
20.00%
5.00%
5
25
50.00%
5.00%
2
1
2.00%
1.00%
50
5
5.00%
2.50%
20
10
10.00%
5.00%
10
15
20.00%
5.00%
5
20
50.00%
5.00%
2
0.5
2.00%
1.00%
50
1
5.00%
2.50%
20
5
10.00%
5.00%
10
10
20.00%
5.00%
5
20
50.00%
5.00%
2
1
2.00%
1.00%
50
5
5.00%
2.50%
20
10
10.00%
5.00%
10
15
20.00%
5.00%
5
20
50.00%
5.00%
2
0.5
2.00%
1.00%
50
1
5.00%
2.50%
20
2.5
10.00%
5.00%
10
5
20.00%
5.00%
5
10
50.00%
5.00%
2
0.5
2.00%
1.00%
50
1
5.00%
2.50%
20
2.5
10.00%
5.00%
10
5
20.00%
5.00%
5
10
50.00%
5.00%
2
0.5
2.00%
1.00%
50
1
5.00%
2.50%
20
2.5
10.00%
5.00%
10
5
20.00%
5.00%
5
10
50.00%
5.00%
2
0.5
2.00%
1.00%
50
1
5.00%
2.50%
20
2.5
10.00%
5.00%
10
5
20.00%
5.00%
5
10
50.00%
5.00%
2
0.5
2.00%
1.00%
50
1
5.00%
2.50%
20
2.5
10.00%
5.00%
10
5
20.00%
5.00%
5
10
50.00%
5.00%
2
0.5
2.00%
1.00%
50
1
5.00%
2.50%
20
2.5
10.00%
5.00%
10
5
20.00%
5.00%
5
10
50.00%
5.00%
2
0.5
2.00%
1.00%
50
1
5.00%
2.50%
20
2.5
10.00%
5.00%
10
5
20.00%
5.00%
5
10
50.00%
5.00%
2
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