Margin Tiers

Maintenance Margin Calculation

SoDEX employs a tiered leverage system. The maintenance margin for a position is calculated as follows:

$$Maintenance Margin=Notional Position Value×Maintenance Margin Rate−Maintenance DeductionMaintenance Margin=Notional Position Value×Maintenance Margin Rate−Maintenance Deduction$$

On SoDEX, both the Maintenance Margin Rate and Maintenance Deduction are determined solely by the margin tier of the position and are independent of the specific asset.

The Maintenance Margin Rate for a given tier is defined as:

$$\text{Maintenance Margin Rate}(Tier=n) = \frac{\text{Initial Margin Rate at Max Leverage}(Tier = n)}{2}$$

For example, a maximum leverage of 20x corresponds to an initial margin rate of 5%, resulting in a maintenance margin rate of 2.5%.

The Maintenance Deduction is calculated recursively to ensure a continuous maintenance margin requirement across tier boundaries:

$$\text{Maintenance Deduction}(Tier = 0) = 0$$

$$\text{Maintenance Deduction}(tier = n) = \text{Maintenance Deduction}(Tier = n-1) + \text{Notional Position Lower Bound}(n) \times \left( \text{Maintenance Margin Rate}(Tier = n) - \text{Maintenance Margin Rate}(Tier = n-1) \right), \quad \text{for } n > 0$$

In essence, this design ensures that the maintenance margin increases at the rate specific to each tier, while the total maintenance margin function remains continuous with respect to the position size, providing a smooth and predictable margin experience.

Margin Tiers by Asset

The following schedule outlines the margin tiers for each futures asset available on SoDEX:

BTC, XAUT

Notional Position Value (USDC)	Maximum Allowable Leverage
0 - 4,000,000	25x
> 4,000,000	10x

ETH, SOL, SILVER

Notional Position Value (USDC)	Maximum Allowable Leverage
0 - 4,000,000	20x
> 4,000,000	10x

DOGE

Notional Position Value (USDC)	Maximum Allowable Leverage
0 - 2,000,000	10x
> 2,000,000	5x

LINK

Notional Position Value (USDC)	Maximum Allowable Leverage
0 - 1,000,000	10x
> 1,000,000	5x