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Standard Margin


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Derive supports two margin systems: Standard Margin, which offers simple risk management and is the default when creating an account, and Portfolio Margin. Learn more about Portfolio Margin here.

What is Standard Margin?

Standard Margin determines your margin requirements for each position in isolation, except for option spreads with the same expiry, whose margin is offset.

The calculation has two steps:

Step 1: Calculating the margin requirements for the perpetuals and/or options:

Step 2: After calculating the perpetual and/or option margin, the value of the USDC and base assets are added:

If the maintenance margin is positive, the account is not subject to liquidation. If the initial margin is positive, the user may add positions.

Note that the description above is simplified. For more details, see the documentation.

When should you use Standard Margin?

Traders should use Standard Margin when they want simple margin rules, access to all markets, and support for cross-asset collateral.

Benefits:

Considerations:

For more details about Standard Margin, see the documentation.