Margin Tiers
GX Exchange uses a multi-tier margin system where maximum leverage decreases as position size increases. This prevents large positions from amplifying systemic risk during volatile markets.
Per-Asset Tier Tables
BTC-USD
| Notional Range | Max Leverage | Initial Margin | Maintenance Margin |
|---|---|---|---|
| $0 — $150M | 40x | 2.50% (250 bps) | 1.25% (125 bps) |
| > $150M | 20x | 5.00% (500 bps) | 2.50% (250 bps) |
ETH-USD
| Notional Range | Max Leverage | Initial Margin | Maintenance Margin |
|---|---|---|---|
| $0 — $100M | 25x | 4.00% (400 bps) | 2.00% (200 bps) |
| > $100M | 15x | 6.67% (667 bps) | 3.33% (333 bps) |
SOL-USD
| Notional Range | Max Leverage | Initial Margin | Maintenance Margin |
|---|---|---|---|
| $0 — $70M | 20x | 5.00% (500 bps) | 2.50% (250 bps) |
| > $70M | 10x | 10.00% (1000 bps) | 5.00% (500 bps) |
Default (All Other Assets)
| Notional Range | Max Leverage | Initial Margin | Maintenance Margin |
|---|---|---|---|
| $0 — $20M | 10x | 10.00% (1000 bps) | 5.00% (500 bps) |
| > $20M | 5x | 20.00% (2000 bps) | 10.00% (1000 bps) |
Tiered Margin Calculation
The margin system ensures continuity at tier boundaries by computing cumulative deductions. Without deductions, a position that crosses from one tier to the next would experience a discontinuous jump in margin requirements.
Maintenance Margin Formula
tiered_maintenance = notional * tier_maintenance_bps / 10,000 - cumulative_deductionWhere the cumulative deduction for tier i is:
deduction[0] = 0
deduction[i] = deduction[i-1] + (tier[i].lower_bound - tier[i-1].lower_bound)
* (tier[i].maintenance_bps - tier[i-1].maintenance_bps) / 10,000BTC-USD Example
Cumulative deduction at tier 1:
deduction[1] = 0 + ($150M - $0) * (250 - 125) / 10,000
= $150,000,000 * 125 / 10,000
= $1,875,000Margin at the $150M boundary:
- Just below ($149,999,999):
$149,999,999 * 125 / 10,000 = $1,874,999 - At boundary ($150,000,000):
$150,000,000 * 250 / 10,000 - $1,875,000 = $1,875,000
The difference is at most 1 unit (integer rounding), confirming smooth continuity.
Margin at $200M:
$200,000,000 * 250 / 10,000 - $1,875,000 = $5,000,000 - $1,875,000 = $3,125,000Effective rate: $3,125,000 / $200,000,000 = 1.5625%, which is between the 1.25% and 2.5% tier rates — exactly as expected for a blended calculation.
Properties
The tiered margin function is:
- Monotonically increasing: Margin always increases as notional increases
- Continuous: No jumps at tier boundaries due to cumulative deductions
- Conservative: Initial margin (used for new orders) does not apply deductions, ensuring slightly higher margin requirements at boundaries for safety
Custom Tier Registration
New markets can be registered with custom margin tier tables via governance. Each custom table must:
- Have at least one tier
- Start at notional lower bound of 0
- Have strictly ascending tier boundaries
- Have non-decreasing maintenance margin rates