Cross Margin

Perpetual future health is calculated as follows

$perpHealth = quantity(markPrice * riskWeight - avgEntryPrice) + funding$

where quantity is a negative value for short positions.

For example, lets calculate the maintenance health on a 5 BTC-Perp short position that was entered at $38,000. The price of BTC is now $40,000 and the position has earned $500 in funding:

• initialLongWeight = 0.9

• maintenanceLongWeight = 0.95

• initialShortWeight = 1.1

• maintenanceShortWeight = 1.05

Max Leverage:

Because of these weights, there is a limit to the max leverage a subAccount can achieve on an asset:

$maxLongLeverage = 1/(1- riskWeight)$

$maxShortLeverage = 1/(riskWeight -1)$

So for BTC-Perps, the max initial leverage would be $1/(1-0.9) = 10x$.