Nexwest uses a margin system similar to major derivatives venues. The two core numbers are initial margin (what you need to open) and maintenance margin (what you need to stay open).
Margin modes
| Mode | Collateral shared | Liquidation scope | Notes |
|---|---|---|---|
| Cross | All cross positions in the account | Entire cross account | Default; capital efficient |
| Isolated | Only the position's margin | That position | Add or remove margin |
| Strict isolated | Only the position's margin | That position | Margin cannot be removed |
Positions in different perp DEXs share margin only in unified account or portfolio margin mode. In standard mode, each DEX has its own cross pool. See accounts.
Initial margin
The margin required to open a position is:
initial_margin = position_notional / leverage
position_notional = size × mark_priceLeverage can be any integer from 1 to the market maximum. Opening a position checks the requirement; changing leverage afterward does not re-check it. You are responsible for monitoring the account.
Leverage is checked at entry only
Increasing leverage on an existing cross position does not free margin or move the liquidation price in the way many traders expect. Use the position preview and read liquidations before changing leverage.
Maintenance margin
Maintenance margin is half of the initial margin at maximum leverage:
maintenance_rate = 0.5 / max_leverage
maintenance_margin = position_notional × maintenance_rateExamples:
| Max leverage | Maintenance rate |
|---|---|
| 40x | 1.25% |
| 20x | 2.50% |
| 10x | 5.00% |
| 5x | 10.00% |
| 3x | 16.67% |
A cross account is liquidated when account value falls below the sum of maintenance margin across positions. An isolated position is liquidated when its isolated equity falls below its maintenance margin.
Transfer margin rule
You can withdraw unrealized PnL or move margin out of a position only if the remaining margin satisfies both:
transfer_margin_required = max(initial_margin_required, 0.1 × total_position_notional)The withdrawable field in clearinghouseState applies this rule. A withdrawal that would violate it is rejected before it reaches the chain.
Unrealized PnL
- Cross: unrealized PnL is immediately available as initial margin for new positions.
- Isolated: unrealized PnL is applied as additional margin to the open position; it cannot be spent elsewhere.
Example
A trader opens 1 BTC long at 100,000 USDC with 10x leverage and 10,000 USDC of collateral.
notional = 100,000
initial margin = 10,000
maintenance rate = 5%
maintenance margin = 5,000The position is liquidated when equity falls below 5,000, which corresponds to roughly a 5% adverse move before fees and funding.