Portfolio margin (PM) replaces position-by-position maintenance margin with a portfolio-level risk calculation. It is designed for accounts that hold offsetting positions and want to use the hedged risk, not the gross notional, as collateral.
How it works
- Positions are grouped into a portfolio.
- The risk engine applies a set of scenario shocks to each position.
- The worst-case loss across scenarios becomes the portfolio maintenance requirement.
- Borrow/lend capacity is derived from the portfolio's loan-to-value (LTV).
Advanced feature
Portfolio margin can increase capital efficiency, but it also introduces borrow/lend interest and liquidation paths that do not exist in cross margin. Enable it only if you understand the scenario model.
LTV and borrowing
Each collateral asset has an LTV and a liquidation threshold:
borrow_capacity = collateral_value × LTV
liquidation_threshold = collateral_value × liquidation_ltv| Asset | LTV | Liquidation LTV |
|---|---|---|
| USDC | 98% | 99% |
| BTC | 80% | 88% |
| ETH | 80% | 88% |
| NXW | 50% | 65% |
| Long-tail spot | 0–40% | 0–55% |
Borrowing accrues interest continuously against the borrowed asset. Interest is added to the loan balance and reduces the portfolio's equity.
Example: carry trade
A trader deposits 100,000 USDC, borrows 50,000 USDC against BTC collateral, and uses the borrowed USDC to buy more BTC. The portfolio's risk is not the sum of each leg; the long BTC and the USDC loan are evaluated together under the scenario shocks.
If BTC falls 20%, the engine computes the loss on the BTC leg and the reduced value of the collateral, then checks the loan against the liquidation threshold. The position is liquidated when the portfolio equity falls below the maintenance requirement, not when a single position hits a fixed maintenance rate.
Liquidations
PM liquidations follow the same book-first, backstop-second sequence as cross margin, with two differences:
- The liquidation engine can close multiple legs to restore the portfolio, not just the failing position.
- The backstop vault receives the entire portfolio, including the loan, rather than a single position.
Enabling portfolio margin
- Open Settings → Account → Portfolio margin.
- Review the scenario table and the assets that will be included.
- Confirm the mode change. The account must satisfy the PM requirement immediately.
- Monitor
portfolioMarginStatethrough the API.
When not to use PM
- You hold one directional position and no hedge.
- You do not want borrow/lend interest.
- You need a simple, predictable liquidation price.
- You are unsure how the scenario shocks map to your positions.