Margin & Leverage

How margin and leverage work on Realm perpetuals

Overview

Realm perpetuals support up to 100x leverage. Leverage amplifies both gains and losses - use responsibly.

Margin Types

Cross Margin

Your entire account balance is used as margin for all positions. This provides maximum capital efficiency but means losses in one position can affect others.

Isolated Margin

Each position has its own dedicated margin. Losses are limited to the isolated margin amount - other positions are protected.

Margin Calculations

// Initial Margin (IM)
IM = Position Value / Leverage

// Maintenance Margin (MM)  
MM = Position Value * Maintenance Rate

// Example: 10 RLM @ $100 with 10x leverage
Position Value = 10 * $100 = $1,000
Initial Margin = $1,000 / 10 = $100
Maintenance Margin = $1,000 * 0.5% = $5

Liquidation

If your margin ratio falls below the maintenance requirement, your position will be liquidated to prevent further losses.

• Margin Ratio = Equity / Position Value
• Liquidation triggers when Margin Ratio < MM Rate
• Insurance Fund covers any remaining deficit

Funding Rate

Perpetual contracts use funding payments to keep the mark price anchored to the spot price. Funding is exchanged between longs and shorts every 8 hours.