MemeSim

Margin, explained

Your deposit, and the only money a trade can take.

Margin is your deposit. It is the money you put up to open a position. Position size divided by leverage. $1,000 at 5x needs $200.

Isolated: the loss stops here. MemeSim uses isolated margin only. A liquidation takes that position's margin and nothing else. Your balance stays.

Maintenance: the minimum to stay open. Half the initial margin at the coin's max leverage. Drop below it and the exchange closes the position.

Fees come out of the full size. 0.045% taker on a $1,000 position is 45 cents each way, paid from your $200 margin. Small, but it adds up at size.

Margin sets the loss. Leverage sets the speed. Choose the dollars you can lose. That is your margin. Lower leverage just means the price must travel further to take it.

Quick check.

Do the math.

Size the deposit. You have $1,000 of paper USDC and want BTC exposure. Buy means $500 margin at 5x, skip means $100 margin at 5x, sell means no trade.

Margin, explained · 4 min

Perps · Lesson 44

Margin is your deposit.

It is the money you put up to open a position. Position size divided by leverage. $1,000 at 5x needs $200.

Go deeper

Initial margin is position size divided by leverage: $1,000 at 5x needs $200. MemeSim uses isolated margin only, so a liquidation takes that position's margin and leaves the rest of your balance alone. Maintenance margin is half the initial margin at the coin's maximum leverage; when your margin minus the unrealized loss falls to that buffer, the position is closed. Fees are charged on the full position size and come out of the same margin.