> For the complete documentation index, see [llms.txt](https://elysia.gitbook.io/elysia-perps/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://elysia.gitbook.io/elysia-perps/trading/margin-and-leverage.md).

# Margin & Leverage

Elysia Perps uses **isolated margin**: each open position is backed by its own margin, walled off from your other positions and from your free balance. Leverage lets you control a larger position than that margin alone.

> Isolated margin is the model available today. **Cross-margin, where** your whole balance backs every position, is planned.

## Leverage

* The leverage range is a **per-market** setting. On Elysia Perps (BTC-PERP-EL and US500-PERP-EL), leverage runs from **1× to 5×** with a default of **2×**.
* Higher leverage means **less margin per position**, but a smaller price move against you reaches liquidation.

## Initial margin

The margin required to open a position is set by your leverage:

```
notional = price × size
initial margin = notional / leverage
```

For example, a $9,500 position at 5× leverage requires **$1,900** of margin.

## How your collateral flows

Your collateral sits in three buckets, and trading moves value between them:

| Bucket              | What it holds                                       |
| ------------------- | --------------------------------------------------- |
| **available**       | Free balance, usable for new orders and withdrawals |
| **locked**          | Margin reserved by your open (unfilled) orders      |
| **position margin** | Collateral backing your open positions              |

```
available ──place order──▶ locked ──order fills──▶ position margin
        ◀──── cancel / close / realized PnL ────────
```

At all times, `available + locked + position margin` equals your total equity. When you cancel an order its locked margin returns to available; when you reduce or close a position, its margin plus any profit or loss settles back to available.

## Maintenance margin

Each position must keep a minimum margin: the **maintenance margin**, a per-market setting currently **2.5% of position value** on BTC-PERP-EL and **3.0%** on US500-PERP-EL. If your position's equity falls below that level, the position is **liquidated**. This is covered in **Risk & Security → Liquidation Risk**.

The gap between your initial margin and the maintenance margin is your buffer: more leverage means a thinner buffer.

## Changing leverage

You can change your leverage per market. The new setting applies to new margin calculations and updates the leverage shown on your existing position in that market.

## Where to go next

* How positions open, grow, and close: [Positions](/elysia-perps/trading/positions.md).
* What happens at the liquidation threshold: **Risk & Security → Liquidation Risk**.


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