Margin & Leverage

• What are the margin requirements?

  • Each Perpetual Future will have published initial margin and maintenance margin requirements. The initial margin is the amount of collateral required to initially open a Perpetual Futures position, including to place a new order. The maintenance margin is the amount of collateral required to maintain an existing position without getting liquidated.

• How much leverage is allowed on the Architect Derivatives Exchange?

  • Trading Perpetual Futures inherently involves leverage. The amount of Leverage each product supports is defined by the margin requirements (both initial and maintenance) which are published on the product specific pages. The maximum allowed leverage varies by product.

• What types of collateral is accepted on the Architect Derivative Exchange?

  • At inception, accounts would be funded with USD. The exchange also plans to accept crypto equivalents of USD (e.g. USDC) for instant collateral transfer on a 24/7 basis. Regardless of the type of collateral used, all contracts will be denominated in USD.

• How do liquidations work? What would cause a liquidation?

  • If an account’s collateral is below the maintenance margin required to maintain the existing positions, the account is subject to liquidation and any open positions may be closed automatically.

• What is a margin call?

  • A margin call occurs when an account’s available collateral decreases and is at risk of failing to meet the maintenance margin required. Note that users trading via a broker may have additional Margin Call processes.

• How do I avoid liquidation?

  • Liquidation can be avoided by keeping the available collateral amount above the required maintenance margin. This can be done by depositing additional collateral or reducing positions to reduce the maintenance margin requirements.