Core Concepts
Margin and Leverage
How FluxPerp calculates collateral requirements and leverage limits.
FluxPerp uses USDC margin for all markets. A position's notional value is divided by selected leverage to determine initial margin.
Initial margin
initial_margin = position_notional / leverageExample: a 1,000 USDC position at 10x leverage requires 100 USDC initial margin.
Cross and isolated margin
Cross margin shares collateral across positions. Isolated margin caps the collateral allocated to one position. Cross margin improves capital efficiency; isolated margin provides clearer maximum-loss boundaries.
Leverage caps
| Market type | Max leverage |
|---|---|
| Major markets | 50x |
| Mid-cap markets | 20x |
| High-volatility markets | 10x |
Warning
Higher leverage reduces the distance between entry price and liquidation price.