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