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.
A measure of how much total available leverage (before liquidation) you are consuming.
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%
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.
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
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
For FX pairs on Vertex, the maintenance margin is
If your account value = $1
You can have positions that = up to $100 before getting fully liquidated
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