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

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

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

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

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

• The portion of the position size within the lower tier keeps its collateral rate
• The remaining portion uses the higher-tier collateral rate
• The total collateral 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 collateral is reflected in your collateral requirement, not as a mixed or averaged leverage value.

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

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

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

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

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

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

When a position moves back into a lower tier:

• Higher-tier collateral rates no longer apply
• Collateral requirements decrease accordingly

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

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

• Current position size
• Applicable collateral tiers
• Blended collateral rates

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

Leverage lets you open a larger perpetuals position using a smaller amount of collateral.

When you select leverage, you choose a multiplier that determines how large your position size is relative to the collateral you use. Your position size determines your collateral tier, and each tier caps the maximum leverage available. This means at higher tiers, your leverage may be lowered. Keep in mind higher leverage increases position size, but it also increases your risk of liquidation.

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

• At 5x leverage, you put up $10,000 in collateral
• 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 collateral is different:

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

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

Leverage multiplies position size, not collateral.

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

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

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

Selecting higher leverage does not guarantee lower collateral requirements.

For more details, review How collateral tiers work.

All positions and pending orders for the same contract 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.
• Leverage can't be changed on an open position.

Perpetuals are complex derivative products, and trading involves significant risk and is not appropriate for all investors, particularly for perpetuals referencing 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.