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Effective Collateral

Effective collateral represents your total available margin: Effective Collateral = Total Balance + Discounted Unrealized PnL + Pending Funding
  • Unrealized profits are discounted; discounts vary per asset, discounts can be found here
  • Unrealized losses are counted in full

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Initial Margin

The collateral required to open a position. Determined by the margin requirement for a position at the maximum leverage level.

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Maintenance Margin

The minimum collateral required to keep a position open. Formula: Maintenance Margin = |Position Notional| / (2 × Leverage) Where:
  • Position Notional = Position Size × Mark Price
  • Leverage = Maximum leverage for your position’s tier
Relationship to Initial Margin:
  • Maintenance margin is exactly 50% of the initial margin
  • When effective collateral falls below the maintenance margin, liquidation begins
Example:
  • $50,000 position at 50x leverage
  • Initial margin = 50,000/50 = 1,000
  • Maintenance margin ≈ $500

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Leverage Tiers

Each perpetual asset features tiered leverage structures that decrease as position sizes increase. Larger positions require more collateral relative to their size. Check your leverage tier, as it affects initial and maintenance margin. Leverage tiers are different for every asset. Find the leverage tier for each asset on Phoenix on the Phoenix Market Parameters page.

Funding Rate

How funding rates work

Account Health

Understanding account health