Margin
All trading and liquidity providing on Vertex is done on margin.
Your margin is in essence your account's value: `collateral + PnL from positions`
When opening positions on Vertex, there are some terms you should get familiar with.

### Margin usage:

A measure of how much total available leverage (before liquidation) you are consuming.
Example:
• User's account value is \$100
• They have an open trade and LP position which together equates to 10x leverage
• Since Vertex lets users take up to 44x leverage, the margin usage is 22.7%

### Margin fraction:

Calculated using account `value/sum of position values`. This won't be displayed on the Dashboard but it's important to know for when it comes to maintenance margin.
Example:
• Taking the scenario above, consider PnL = 0 for simplicity
• Account value is \$100, position values = \$1000 because combined are 10x leverage
• Margin fraction: \$100/\$1000 = 0.1

### Maintenance Margin

This is the minimum margin fraction a user's account must maintain. If a users margin fraction gets close or dips below the maintenance, they risk liquidation (see Liquidation).
For FX pairs on Vertex, the maintenance margin is 0.01
Example:
• If your account value = \$1
• You can have positions that = up to \$100 before getting fully liquidated