> For the complete documentation index, see [llms.txt](https://docs.flash.trade/flash-trade/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.flash.trade/flash-trade/flash-trade-protocol/perpetuals-specifications/collateral-specification.md).

# Collateral Specification

On Flash Trade the collateral for a trade depends on whether you long or short an asset. Two rules cover everything:

1. **Shorts always post USDC.** Every short market settles its collateral in USDC.
2. **Longs are backed by the market's backing asset.** Each market has a fixed backing asset in its pool — the order panel shows it as "Collateral In" before you confirm (for example, SOL longs are backed by [JitoSOL](https://www.jito.network)).

You don't need to hold the backing asset yourself: pay from any supported balance in your Flash account and the protocol converts it into the backing asset when the position opens (a pool swap fee applies to the conversion).

{% hint style="success" %}
*Example*: You pay with USDC to long SOL. The protocol converts your USDC into the SOL market's backing asset first, then opens the position at your chosen leverage.
{% endhint %}

### Backing assets by market group

{% tabs %}
{% tab title="Long Positions" %}

| Market group                   | Markets                                                      | Backing asset                            |
| ------------------------------ | ------------------------------------------------------------ | ---------------------------------------- |
| Crypto majors                  | SOL / BTC / ETH / ZEC                                        | The asset itself (SOL longs use JitoSOL) |
| Crypto (synthetic)             | BNB, XRP                                                     | BTC                                      |
| Crypto (synthetic)             | TRX                                                          | ETH                                      |
| Crypto (synthetic)             | NEAR, MON, GRAM, BP                                          | JitoSOL                                  |
| Crypto (synthetic)             | ADA, SUI                                                     | USDC                                     |
| Gold Pool — gold, silver       | XAU, XAG                                                     | XAUt                                     |
| Gold Pool — forex, commodities | EUR, GBP, USDJPY, USDCNH, CRUDEOIL, NATGAS, COPPER, XPD, XPT | USDC                                     |
| Defi Pool                      | JUP, JTO, HYPE                                               | The asset itself                         |
| Defi Pool (synthetic)          | KMNO, PYTH, ONDO, UNI                                        | JUP                                      |
| Defi Pool (synthetic)          | LIT, MEGA                                                    | HYPE                                     |
| Defi Pool (synthetic)          | CHIP, TAO, VVV, WLD                                          | USDC                                     |
| Meme markets                   | BONK, PENGU, PUMP, WIF, FARTCOIN                             | The asset itself                         |
| Equities                       | SPY, TSLA, NVDA, AAPL and all other equity markets           | SPY                                      |
| {% endtab %}                   |                                                              |                                          |

{% tab title="Short Positions" %}
For ALL short positions across every asset, collateral is always **USDC**.
{% endtab %}
{% endtabs %}

*Backing assets are on-chain market parameters as of 2026-07-03; the order panel's "Collateral In" row is always the live authority.*

### Position size limits

Maximum position size is set per market. The largest markets: **BTC and SOL allow up to $2,000,000 per position**; ETH $750,000; most other markets range $50,000–$500,000. The order panel rejects orders above the market's limit.

{% hint style="info" %}
**Per-market permissions can change.** Individual markets can have a side temporarily disabled (for example, opening new longs while a pool winds down) — the trade panel reflects what's currently available.
{% endhint %}


---

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