Margining

Trado supports users to manage positions using isolated margin mode. In isolated margin mode, the position margin is calculated as follows:

Position Margin (Isolated Margin Mode) = Initial Margin + Adjusted Margin for the Position

Index	Explanation
Margin Rate	Margin Rate = (Initial Margin + Unrealized P/L within the position) / (Maintenance Margin Required + Closing Fees)
Maintenance margin	Maintenance margin refers to the amount of perpetual contract margin held in an account for a specific asset. There is typically a minimum requirement for maintenance margin, and falling below the minimum maintenance margin will trigger forced liquidation.

Adjusting Margin

Users can choose to withdraw or deposit margin from a specific asset position, thereby altering the actual leverage of the position to balance position risk and achieve the desired level of risk.

When withdrawing margin, it is necessary to ensure that the remaining margin in the position is greater than the maintenance margin, and after withdrawing the margin, the actual leverage of the position is less than the maximum leverage for that asset.

When depositing margin, the amount deposited cannot exceed the balance in the trading wallet. Additionally, it must be ensured that after depositing, the actual leverage of the position is not less than 1.

Example:

1. User A opened a position of 100 USDX of ETH when ETH was at 2,500, using 10x leverage, meaning the initial margin was 10 U. When the market fluctuated and the ETH price dropped to 2,400, with an unrealized profit/loss of -4 USDT, the remaining margin is calculated as follows: 100/10 + 100 * (2,400-2,500)/2,500 = 6 USDX

2. User A has 1,000 USDX in their trading wallet. They use 500 USDX as margin to open a 20x leveraged ETH perpetual short position. However, due to fluctuations in ETH price, User A's position is liquidated. In this case, due to using isolated margin model, User A only loses the 500 USDX used as margin for the ETH position. The additional 500 USDX in their trading wallet remains unaffected.