Infinity uses a step approach when determining the maintenance and initial required margin.
Infinity requires 1% of position value as initial margin (IRM) and 0.5% of position value as maintenance margin for up to 50 BTC size of total combined positions.
This is equivalent to 100X leverage.
As the total combined position increases, both maintenance margin and initial required margin increase in steps of 0.5% for every additional 50BTC added to the position.
Each position has a Risk Limit and Step. These numbers combined with the Margin Maintenance and Initial Required Margin requirements are used to calculate your full margin requirement at each position size.
As the position size increases, the margin maintenance and initial margin requirements will increase. Margin requirements will automatically increase and decrease as your risk limit changes.
Risk Limit Steps Table
Liquidation Price = Open Price - [ ( Margin Maintenance - Initial Required Margin ) / Position Size ]
Margin Coverage = Equity / Margin Maintenance Value x 100
Trader initially starts with a short position of 40 BTC. As the total position is below 50 BTC, Margin Maintenance is 0.5% and Initial Required Margin is 1%
Liquidation Price : 4000 - [ ( 800 - 1600 )/40 ] = $4020
Margin coverage = ( 1600 / 800 ) x 100 = 200%
Trader opens another position of 20 BTC increasing his total position to 60, and above the initial 50 BTC limit. Both Initial Required Margin and Margin Maintenance increase by 0.5%
Liquidation Price : 4000 - [ ( 800 - 1200 )/20 ] = $4020
Margin Coverage = ( 1200 / 800 ) x 100 = 150%
User opens an additional position of 60 BTC, increasing his total to 120. As Margin Maintenance and Initial Required Margin increase in steps of 50 BTC, this increases the user's new Margin Maintenance and Initial Required Margin by additional 0.5%.
Liquidation Price : 4000 - [ ( 3600 - 4800 )/60 ] = $4020
Margin Coverage = ( 4800 / 3600 ) x 100 = 133%
The total position opened by the trader is 120 BTC with Liquidation price at $4020.
Based on the Step Limit Table, 120 BTC position in the step limit IRM is 2.0% and MM is 1.5%.
If a trader open one single order with position size of 120BTC and open price of $4000, the liquidation price as below.
Liquidation Price : 4000 - [ ( 7200 - 9600 )/120 ] = $4020
Margin Coverage = ( 9600 / 7200 ) x 100 = 133%
OP = Open Price ( USD )
IRM = Initial Required Margin
IRM Value = Open Price * Position Size * IRM Step Limit %
Note : for Infinity, IRM is 1% for the first 50 BTC (100x leverage) and increase in step of 0.5% for every additional 50 BTC added to the combined position.
MM Value = Order Value * p Where p is the default percentage
P = 0.5% for the first 50 BTC (100x leverage) and increase in step of 0.5% for every additional 50 BTC added to the combined position.
MM = Margin Maintenance %
0.5% for the first 50 BTC (100x leverage) and increase in step of 0.5% for every additional 50 BTC added to the combined position
MP = Market Price
P&L = Profit and Loss
MC = Margin Coverage % = Equity / Margin Maintenance Value
LP = Liquidation ( USD )