Margin

Notional is margin × leverage, capped at 25× by the contract. Each market also sets a minimum and maximum notional and an open-interest cap.

Margin is posted in USDG when the position opens and is escrowed for its life. There is no cross-margining: a loss on one position cannot draw on another.

Maintenance

A side is liquidatable once its equity falls below margin × maintenanceBps / 10,000. At 5%, a side posting 1,000 USDG is liquidated when its equity reaches 50 USDG rather than 0.

Liquidating at zero would take the keeper fee out of the winning side's payout. Liquidating while the losing side still holds a residual takes the fee from that residual instead.

Example

A long posts 1,000 USDG margin at 10× on an index at 100, the short posts the same, and maintenance is 5%. Notional is 10,000 and escrow is 2,000.

At an index of 91 the long is down 900 and holds 100 equity, above its 50 maintenance. At 90.5 it holds 50 and is liquidatable. The short receives its 1,000 plus the long's 950 loss, less the liquidation fee taken from the long's remaining 50.

Positions accrue funding continuously, charged against margin. See Funding.