Margin tiers determine how margin requirements are calculated. Margin tiers are based on the total notional position size in a contract. As your position size changes, different margin tiers may apply.

Margin tiers are determined by your total position size in a single contract and are applied automatically.

• Different margin tiers may apply as position size changes
• Higher tiers have higher margin requirements
• Margin tiers differ by contract, view Margin tiers by contract for details

If a position stays within a single margin tier, one margin rate applies to the entire position.

If a position crosses a tier threshold, meaning the position size has reached the limit for a single margin tier:

• The portion of the position size within the lower tier keeps its margin rate
• The remaining portion uses the higher-tier margin rate
• The total margin requirement is calculated using a blended rate across those tiers

Even if your position spans multiple tiers, the app displays the highest selected leverage (e.g. 10x). The blended margin is reflected in your margin requirement, not as a mixed or averaged leverage value.

When you open a position, margin tiers are evaluated using the position size after the order is filled.

If the entire position fits within one margin tier, one margin rate applies. If the position spans multiple tiers, margin is calculated using blended rates across those tiers.

When you add to an existing position, margin tiers are re-evaluated using the total resulting position size after the trade. You must meet the initial margin requirement for the full combined position, not just the new amount. This includes:

• Topping up your existing position if it falls below required margin
• Higher margin requirements if your total size moves into a new tier

If your position spans multiple tiers, your margin is calculated as a blend across those tiers.

Reducing a position lowers total position size and can move the position into a lower margin tier.

When a position moves back into a lower tier:

• Higher-tier margin rates no longer apply
• Margin requirements decrease accordingly

Closing a position reduces position size to zero and releases position-related margin.

Estimated margin required shows how much margin is needed based on:

• current position size
• applicable margin tiers
• blended margin rates

The amount of margin required can change as the position size or price changes.

Leverage lets you open a larger perpetual futures position using a smaller amount of margin.

When you select leverage, you choose a multiplier that determines how large your position size can be relative to the margin you use. Leverage does not determine margin tiers. Margin tiers are based on total position size and are applied separately. Higher leverage increases position size, but it also increases risk of liquidation.

Your liquidation threshold is based on your total position size. What changes with leverage is how much of your margin is used up when prices move.

Here’s an example for a $50,000 position:

• At 5x leverage, you put up $10,000 in margin
• At 7x leverage, you put up about $7,143

If the price moves against you by 5%, both positions lose $2,500. But the impact on your margin is different:

• At 5x, that’s 25% of your margin
• At 7x, that’s 35% of your margin

This means higher leverage lets you trade with less upfront margin, but it also means your margin is used up faster when the market moves against you. Tiered margin helps manage this risk for larger positions by requiring more margin as your position size increases. Review Perpetual futures liquidations for more information on managing your risk.

Leverage multiplies position size, not margin.

• At 1x leverage, position size equals the margin used
• At 10x leverage, position size can be up to ten times the margin used

Leverage affects position size, but margin requirements depend on position size and margin tiers. As position size increases:

• Margin tier limits may apply
• Margin rates may increase
• Margin may be blended across tiers

Selecting higher leverage does not guarantee lower margin requirements.

For more details, review How margin tiers work.

All positions and pending orders for the same contract and margin mode must use the same leverage.

• If you have an open position or pending order, all new orders for that contract must use the same leverage setting.
• You cannot place an order with a different leverage for the same contract until the open position is closed, and all pending orders are canceled or filled.
• You can increase leverage on an open position, but you can’t reduce it. To reduce leverage, you can close the position and open a new position with lower leverage.

Perpetual futures are complex derivative products, and trading involves significant risk and is not appropriate for all investors, particularly for perpetuals referencing crypto assets which experience volatile price movements. Further, leveraged trading is risky as it can amplify the speed of your losses and increases the chance of you losing all of your initial investment. Please carefully consider if investing in such financial instruments is appropriate for you in light of your specific experience, risk tolerance, and financial situation. Restrictions and eligibility requirements apply.