Risk Parameters
Consolidated reference for margin, leverage, liquidation, and risk controls
Overview
This page lists the risk parameters that govern trading on OBSDN. For mechanics and examples, follow the links to each topic page.
Per-instrument leverage, margin rates, and contract specifications are available via the markets endpoint.
Margin
| Parameter | Value |
|---|---|
| Margin modes | Cross, Isolated |
| Collateral modes | USDC-only, Multi-asset |
| USDC collateral ratio | 1.0 (no haircut) |
| Non-USDC collateral ratio | Configurable per asset (haircut applied) |
| Margin asset | USDC |
In cross mode, all positions share account collateral. In isolated mode, margin is scoped per position.
See Margin System.
Leverage and Margin Rates
Leverage bounds and corresponding margin rates are set per market:
| Parameter | Range |
|---|---|
| Maximum leverage | 5x – 20x |
| Initial margin rate (IMR) | 5% – 20% |
| Maintenance margin rate (MMR) | 3.33% – 13.33% |
The relationship between leverage and margin rates:
Higher leverage implies tighter liquidation distance and stronger sensitivity to adverse moves.
See Instruments.
Liquidation
| Parameter | Description |
|---|---|
| Trigger | Margin balance falls below maintenance margin requirement |
| Execution waterfall | Orderbook liquidation → backstop/vault → ADL |
| Partial liquidation | Supported — only enough size is reduced to restore compliance |
| Mark price basis | Liquidation checks use mark price, not last-trade price |
Account State Transitions
- Healthy — margin balance ≥ IM requirement
- Reduce-only — IM requirement > margin balance ≥ MM requirement
- Liquidation eligible — margin balance < MM requirement
See Liquidations and ADL and Insurance Fund.
Funding
| Parameter | Value |
|---|---|
| Settlement cadence | Hourly (configurable per market) |
| Funding rate clamp | ±1% per interval |
| Funding rate divisor | 8 (annualization factor for premium index) |
| Direction | Positive rate: longs pay shorts |
Funding is a peer-to-peer transfer, not a trading fee.
See Funding.
Price Protections
| Parameter | Description |
|---|---|
| Price bands | Maximum deviation from reference price, configured per market (default rate plus optional per-market overrides). When the default rate is zero, price band validation is disabled. |
| Reference basis | Mark / index price |
Orders that exceed the allowed price band relative to the reference price are rejected before matching.
Position and Order Limits
| Parameter | Description |
|---|---|
| Position size cap | Configurable per market (can be uncapped) |
| Open-interest cap | Configurable per market; risk-increasing orders rejected when exceeded |
| Order precision | Price must align to tick size; size must align to lot size |
See Instruments.
Market Modes
Each market operates in one of five modes (trading, post-only, wind-down, halted, delisted) that restrict which operations are accepted.
See Market Lifecycle.
API Access
Risk parameters and real-time risk state are available through:
- List all available markets — max leverage, tick/lot size, OI capacity, funding metadata
- Get portfolio — margin balances, margin ratio, liquidation state, free collateral
- WebSocket position channel — per-position leverage, margin, liquidation price
- WebSocket portfolio channel — account-level margin health, cross margin ratio