> For the complete documentation index, see [llms.txt](https://blackboard-fi.gitbook.io/blackboard-docs/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://blackboard-fi.gitbook.io/blackboard-docs/trade/margin-and-leverage.md).

# Margin & Leverage

How the margin system and leverage work for perpetual futures.

## Margin

Margin is the collateral required to open a position.

**Example**: $10,000 BTC-PERP position at 10x leverage → required margin: $1,000.

### Margin Assets

| Market                                             | Margin Asset |
| -------------------------------------------------- | ------------ |
| Crypto perpetuals (Aster)                          | USDT         |
| Real-world asset perpetuals (HIP-3 on Hyperliquid) | USDC         |

## Leverage

The ratio of position size to collateral.

| Leverage | Position with $1,000 | P\&L on 1% Move |
| -------- | -------------------- | --------------- |
| 1x       | $1,000               | $10 (1%)        |
| 5x       | $5,000               | $50 (5%)        |
| 10x      | $10,000              | $100 (10%)      |
| 25x      | $25,000              | $250 (25%)      |

For crypto perpetuals, maximum leverage varies by asset and is shown in the trading interface. For HIP-3 real-world asset markets: indices and FX up to 50x, global equities up to 20x, commodities up to 25x.

{% hint style="warning" %}
High leverage can wipe out your position from a small move. Lower leverage until you are experienced.
{% endhint %}

## Margin Modes

### Cross Margin

Your entire available balance serves as collateral.

* Liquidation price is further away
* But your full balance is at risk
* Best for: Long-term positions with sufficient free capital

### Isolated Margin

Separate collateral allocated per position.

* Only the assigned margin is at risk
* Liquidation price is closer
* Best for: Limiting risk on individual trades

### Comparison

|                       | Cross                  | Isolated              |
| --------------------- | ---------------------- | --------------------- |
| Margin scope          | Entire balance         | Per-position          |
| Liquidation price     | Further                | Closer                |
| Maximum loss          | Full available balance | Allocated margin only |
| Cross-position impact | Yes                    | None                  |

## Margin Ratio

```
Margin Ratio = Maintenance Margin / Account Equity
```

* Below 100%: Normal
* Reaches 100%: Liquidation triggered

## Adding Margin

In Isolated mode, you can add margin to push the liquidation price further away.

1. Select the position
2. Click **Add Margin**
3. Enter the amount
4. Liquidation price updates immediately

## Next Steps

* [Liquidations](/blackboard-docs/trade/liquidations.md) — Liquidation mechanics
* [Funding Rates](/blackboard-docs/trade/funding-rates.md) — Funding rates
* [Fees](/blackboard-docs/resources/fees.md) — Fee structure