Margin Framework

There are two main parameters to the Flash.Trade's Margin Framework. Maximum Initial Margin and Maximum Maintenance Margin.

Pool	Maximum Initial Margin	Maximum Maintenance Margin
Crypto (Pool 1)	1% of total position size (100x)	0.5% of total position size (200x)
Synthetic (Pool 2)	0.5% of total position size (200x)	0.25% of total position size (400x)
Solana Beta (Pool 3)	5% of total position size (20x)	1.0% of total position size (100x)

When evaluating a position's collateral value during a High Volatility Flag as defined in our Price Engine section, the lower bound of the confidence interval that Pyth reports will determine the value of your collateral.

In the same vein, the price used when open/closing positions or determining liquidation prices during High Volatility Flag moments will be whichever maximizes liabilities and minimizes assets for Traders. For Shorts: If a Short XYZ position has a liquidation price and the pricing engine has switched to High Volatility Flag mode then the upper bound of the confidence interval reported by Pyth as a premium for XYZ's price affecting the positions PnL. If this results in the position's collateral to be less than the maintenance margin, then the position will be liquidatable. Stablecoin depegs will cause collateral for short positions to be valued at lower than $1 as well potentially causing a liquidation.

For Longs: If a Long XYZ position has a liquidation price then the lower bound of of the confidence interval reported by Pyth for XYZ's price will be used to discount both the value of the collateral and current PnL of the position. If this results in the position's collateral to be less than the maintenance margin, then the position will be liquidatable.