Margining

Margin Mode

DipCoin currently supports Isolated Margin for all perpetual markets. Under isolated margining, collateral assigned to a position is ring-fenced and represents the maximum amount of capital at risk for that specific position. Losses are therefore limited to the allocated margin, and liquidation of one position does not directly impact a trader’s other holdings. This provides clear risk compartmentalization, though it requires users to manage margin on a per-position basis.

At present, DipCoin offers only isolated margining. However, the platform roadmap includes the planned introduction of Cross Margin, enabling traders to pool collateral across positions for greater capital efficiency while maintaining robust risk controls.

Margin Ratio

The Margin Ratio (MR) is a key risk indicator used to evaluate whether a position is sufficiently collateralized. It is calculated as the ratio between position equity and position notional value:

Margin Ratio=Position Equity/Position Notional

• Position Equity includes the initial margin, unrealized PnL, and unsettled funding payments.

• Position Notional is the product of the oracle price and the position size.

Initial Margin Ratio (IMR)

The IMR establishes the minimum collateral required to open a position, effectively determining the maximum leverage available at entry. For example, an IMR of 5% corresponds to a maximum leverage of 20x. If a trader’s Margin Ratio (MR) falls below the IMR, they are restricted from placing orders that would further weaken their margin standing.

Maintenance Margin Ratio (MMR)

The MMR sets the collateral threshold below which a position becomes eligible for liquidation. If MR drops beneath the MMR, the system will initiate liquidation to prevent losses from exceeding the posted margin. The MMR is always lower than the IMR, ensuring a buffer zone where traders can take corrective actions—such as reducing position size or adding margin—before liquidation risk becomes imminent.