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 SoDEX futures assets:

BTC

Notional Position Value (USDC)	Maximum Allowable Leverage
0 - 4,000,000	40x
> 4,000,000 - 1,000,000,000	10x
> 1,000,000,000	1x

ETH, XAUT

Notional Position Value (USDC)	Maximum Allowable Leverage
0 - 4,000,000	25x
> 4,000,000 - 1,000,000,000	10x
> 1,000,000,000	1x

USTECH100

Notional Position Value (USDC)	Maximum Allowable Leverage
0 - 250,000	25x
> 250,000 - 100,000,000	10x
> 100,000,000	1x

SOL

Notional Position Value (USDC)	Maximum Allowable Leverage
0 - 4,000,000	20x
> 4,000,000 - 1,000,000,000	10x
> 1,000,000,000	1x

SILVER

Notional Position Value (USDC)	Maximum Allowable Leverage
0 - 500,000	20x
> 500,000 - 1,000,000,000	10x
> 1,000,000,000	1x

US500

Notional Position Value (USDC)	Maximum Allowable Leverage
0 - 250,000	20x
> 250,000 - 100,000,000	10x
> 100,000,000	1x

CL, COPPER

Notional Position Value (USDC)	Maximum Allowable Leverage
0 - 125,000	20x
> 125,000 - 100,000,000	10x
> 100,000,000	1x

BCH, DOGE, NEAR, XRP, ZEC

Notional Position Value (USDC)	Maximum Allowable Leverage
0 - 2,000,000	10x
> 2,000,000 - 1,000,000,000	5x
> 1,000,000,000	1x

1000BONK, 1000PEPE, 1000SHIB, AAVE, ADA, AVAX, BNB, ENA, FARTCOIN, HYPE, LINK, LTC, ONDO, PUMP, SUI, UNI, WLD, XPL

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

AAPL, AMD, AMZN, BASED, COIN, CRCL, EWY, GOOGL, HOOD, INTC, META, MSFT, MSTR, MU, NVDA, ORCL, PLTR, SAMSUNG, SKHX, SNDK, TON, TSLA, TSM

Notional Position Value (USDC)	Maximum Allowable Leverage
0 - 125,000	10x
> 125,000 - 100,000,000	5x
> 100,000,000	1x

ASTER, AXS, BERA, DASH, ETC, FIL, MON, PENGU, VIRTUAL, WIF, WLFI, XMR

Notional Position Value (USDC)	Maximum Allowable Leverage
0 - 1,000,000	5x
> 1,000,000 - 1,000,000,000	2x
> 1,000,000,000	1x

APT, ARB, CHZ, HBAR, LIT, OP, TRUMP, TRX, XLM

Notional Position Value (USDC)	Maximum Allowable Leverage
0 - 250,000	5x
> 250,000 - 1,000,000,000	2x
> 1,000,000,000	1x