> 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/margin-framework.md).

# Margin Framework

Flash Trade's margin system uses two numbers to manage risk on every position:

* **Initial margin** — the minimum collateral to *open* a position: `position size × (1 / max initial leverage)`
* **Maintenance margin** — the minimum collateral to *keep* it open: `position size × (1 / max maintenance leverage)` — crossing it triggers liquidation

***

#### Leverage limits by market group

Standard initial leverage caps at **100x** on crypto markets and **200x** on synthetic markets in the trade panel; Degen Mode raises the initial cap to **500x** on SOL, BTC, and ETH. Maintenance leverage is much higher than initial leverage — that gap is your buffer before liquidation:

| Market group                  | Standard max initial leverage | Degen Mode | Max maintenance leverage |
| ----------------------------- | ----------------------------- | ---------- | ------------------------ |
| Crypto majors (SOL, BTC, ETH) | 100x                          | up to 500x | 1000x                    |
| Forex pairs                   | 200x                          | —          | 2000x                    |
| Metals (gold, silver)         | 100–130x                      | —          | 200x                     |
| Oil, gas                      | 7–12x                         | —          | 50–100x                  |
| Defi Pool markets             | 13–60x                        | —          | 100x                     |
| Meme markets                  | 30x                           | —          | 50x                      |
| Equities                      | 25x                           | —          | 50x                      |

*Values are per-market protocol parameters as of 2026-07-03 and are tuned over time; the leverage slider in the trade panel always shows the live limit for the selected market.*

***

#### Conservative pricing during volatility

During periods of extreme volatility, position pricing follows conservative principles: the oracle's confidence interval is applied so that prices used for opening, closing, and liquidation calculations **maximize liabilities and minimize assets** for traders.

{% columns %}
{% column %}
**For longs**

The lower bound of the oracle confidence interval values your collateral and PnL — both are discounted, so liquidation can arrive earlier than mid-price math suggests.
{% endcolumn %}

{% column %}
**For shorts**

The upper bound of the confidence interval prices your position — reducing recognized profit while volatility is elevated.
{% endcolumn %}
{% endcolumns %}

{% hint style="warning" %}
**Practical takeaway.** During volatile periods, run lower leverage and keep collateral well above the minimum — conservative pricing means liquidation distance is shorter than it looks. See Pricing Engine for how oracle confidence works.
{% endhint %}


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