ParabolicParabolicDOCS
Trading

Margin & Leverage

Isolated margin per position. Dynamic max leverage based on probability level.

Isolated margin per position. Dynamic max leverage based on probability level.

Dynamic leverage
10×
20–80%
10–20%
5–10%
<5% / >95%
Margin math
Initial Margin (IM)        = Notional ÷ Leverage
Maintenance Margin (MM)    = 50% of IM
Liquidation (long)         = Entry × (1 − 1/Leverage × MM_Ratio)

At max leverage near terminal probabilities (very high or very low), liquidation distance shrinks fast. The dynamic leverage curve enforces lower max leverage in those zones to protect both traders and the vault.

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