Docs/Trading Account & Margin

Trading Account & Margin

Understanding account types, margin requirements, and how leverage affects your trading on SunPerp

Account Types

SunPerp offers different account modes to suit various trading strategies and risk preferences.

Cross Margin Mode

All positions share the same margin pool. Unrealized PnL from profitable positions can support losing positions.

✓ Lower liquidation risk
✓ Capital efficiency
⚠ All positions at risk

Isolated Margin Mode

Each position has its own isolated margin. Losses are limited to the allocated margin for that position.

✓ Limited risk per position
✓ Better risk control
⚠ Higher margin requirements
Margin Requirements

Understanding margin requirements is crucial for managing your positions and avoiding liquidation.

Initial Margin

The minimum amount required to open a position.

Formula:
Position Value / Leverage

Maintenance Margin

The minimum margin required to keep a position open.

Liquidation occurs when:
Margin Ratio ≤ Maintenance Margin

Margin Calculation Example

Position Details
Asset:BTC/USDT
Position Size:1 BTC
Entry Price:$45,000
Leverage:10x
Margin Requirements
Position Value:$45,000
Initial Margin:$4,500
Maintenance Margin:$450
Liquidation Price:~$40,950
Margin Ratio & Health

Monitor your margin ratio to avoid liquidation and maintain healthy positions.

Margin Ratio Formula

Margin Ratio =
(Account Balance + Unrealized PnL) / Position Value
Healthy
> 20%
Warning
5% - 20%
Danger
< 5%
Liquidation Process

Understanding the liquidation process helps you avoid forced position closures and protect your capital.

Step 1: Margin Call

When margin ratio falls below 20%, you'll receive warnings to add margin or reduce position size.

Step 2: Liquidation Trigger

When margin ratio reaches maintenance margin level, liquidation process begins automatically.

Step 3: Position Closure

Position is closed at market price. Liquidation fee is deducted from remaining margin.

Avoiding Liquidation

  • • Monitor margin ratio regularly
  • • Add margin when ratio falls below 50%
  • • Use appropriate leverage for market conditions
  • • Set stop losses to limit downside
  • • Consider reducing position size in volatile markets