Margin Guide

All funds on a client’s account can be used as collateral. ZUBR engine constantly checks if the client has enough funds to place new orders or maintain open positions. There are four margin modes that can be applied to a client. Those modes are based on the ratio of available collateral to the liabilities level calculated by the ZUBR risk engine. The client’s portfolio state is also taken into account.  

In Normal Mode, the client may place new orders and open positions. New positions may lead to a decrease in the available margin level (decrease the available balance).

In the Overlimit Mode, the client may only place new orders if, after execution, they will increase the available margin level (increase the available balance).

In the Partial Liquidation Mode, the client is not able to place or cancel orders, and control of both the liquidation and account management is passed to the liquidation mechanism. The liquidation mechanism cancels orders to increase the available margin amount. If that is not enough, the liquidation mechanism starts working in the partial liquidation mode.

The client may be entered into the Full Liquidation Mode if the significant market move happens within a limited time and the Partial Liquidation does not have enough time to happen, or the position size is too small to be partially closed. The liquidation mechanism cancels all the active orders if this has not been done at the previous stage. If that is not enough, the liquidation mechanism starts working in the full liquidation mode.

The client may choose between two margin modes.

The Cross Margin mode is set by default. The client funds are utilized as collateral for all the open positions and active orders. The collateral amount defines the client’s risk. The maximum available leverage is the maximum leverage set for the instrument.

The Isolated Margin mode is activated by the client.  The client can set the appropriate level of risk (allocate collateral) and the maximum leverage for the instrument in this mode. The Partial Liquidation is not allowed for the mode. In case of liquidation, the client’s position will be forcibly closed in full.

The minimum margin level is a function of the maximum position size the client is willing to open. The client sets the size, and the risk engine applies the respective risk limits. The risk parameters may be calculated using the formula below or may be taken from the table below.

BTCUSD:

IML =  5 + (max( ceil( (pos-100)/100 ), 0) ) * 2

PLML =  2 + (max( ceil( (pos-100)/100 ), 0) ) * 2

FLML =  1 + (max( ceil( (pos-100)/100 ), 0) )

ETHBTC, ETHUSD:

IML =  10 + (max( ceil( (pos - 50)/50 ), 0) ) * 2

PLML =  2 + (max( ceil( (pos - 50)/50 ), 0) ) * 2

FLML =  1 + (max( ceil( (pos - 50)/50 ), 0) )