Margin Tiers

Overview

Bulk Exchange employs a tiered margin system to effectively manage risk associated with positions of varying sizes. The core principle is that as the notional value of a position increases, the Maintenance Margin (MM) requirement also increases. This structure ensures the solvency of the platform and promotes market stability by requiring proportionally more collateral for larger positions that carry greater market risk.

The system is straightforward and applies universally across all contracts on the exchange.

Maintenance Margin Calculation

The Maintenance Margin for any given position is determined by a tiered system based on its total notional value. The calculate_maintenance_margin function assesses the position's value and applies the appropriate rate from the defined tiers.

Margin Tiers

The Maintenance Margin rates are set according to the following tiers:

< $250,000	0.5%
> $250,000	1.0%