Leverage margin

Leverage and margin determine how large a position you can open and when you may be liquidated.

Leverage Tiers

WaterX sets maximum leverage based on asset volatility:

Asset Class	Markets	Max Leverage
High-liquidity Crypto	BTC/USD, ETH/USD	50x
Mid-liquidity Crypto	SOL/USD	30x
Sui Ecosystem Tokens	SUI/USD, DEEP/USD, WAL/USD	20x
xStock	AAPLX, GOOGLX, METAX, NVDAX, QQQX, SPYX, TSLAX	10x

Higher leverage means lower initial margin requirements, but your liquidation price is closer to your entry price.

Margin Types

Initial Margin

The minimum collateral required to open a position.

Initial Margin = Position Size / Leverage

Example: You want to open a $10,000 BTC Long at 10x leverage:

Initial Margin = $10,000 / 10 = $1,000

You need at least $1,000 worth of USDC or USDsui in your account.

Maintenance Margin

The minimum collateral required to keep a position open. WaterX uses a uniform maintenance margin = 1.5% across all assets.

Maintenance Margin = Position Size × 1.5%

When your position equity falls below the maintenance margin, the position is liquidated.

Example (continuing above):

Maintenance Margin = $10,000 × 1.5% = $150

If the position's equity (collateral − losses − fees) drops below $150, it gets liquidated.

Isolated Margin

WaterX uses isolated margin mode: each position's margin is calculated independently and does not affect other positions.

This means:

• Each position has its own dedicated collateral, fully isolated from other positions

• A liquidation on one position does not impact your other positions or account balance

• Maximum loss = that position's collateral

Tip: Isolated margin naturally limits risk per position. For further strategy isolation, use separate sub-accounts.

Margin Ratio

Margin ratio is based on the position's own collateral (not the overall account):

Margin Ratio = Maintenance Margin / Position Equity

Where Position Equity = Position Collateral + Unrealized PnL − Accumulated Fees.

The closer the Margin Ratio is to 100%, the closer you are to liquidation.

Example:

• Position Size: $10,000 (BTC Long 10x)

• Position Collateral: $1,000

• Unrealized PnL: +$200

• Position Equity: $1,200

• Maintenance Margin: $150

Margin Ratio = $150 / $1,200 = 12.5%

Plenty of room before liquidation. If Position Equity drops to $150, Margin Ratio hits 100% and liquidation triggers.

Adjusting Collateral

You can add or remove collateral without closing the position:

• Deposit Collateral: Increases margin, lowers liquidation price, moves you further from liquidation

• Withdraw Collateral: Decreases margin, raises liquidation price, but frees up funds

Warning: Withdrawing collateral moves your liquidation price closer to the current price. Always check the new liquidation price before confirming.

Liquidation Price Preview

Liquidation Price (Long)  = Entry Price × (1 − Initial Margin Rate + Maintenance Margin Rate)
Liquidation Price (Short) = Entry Price × (1 + Initial Margin Rate − Maintenance Margin Rate)

Example (BTC Long 10x, Entry $60,000):

Initial Margin Rate = 1/10 = 10%
Maintenance Margin Rate = 1.5%

Liquidation Price = $60,000 × (1 − 0.10 + 0.015) = $60,000 × 0.915 = $54,900