> For the complete documentation index, see [llms.txt](https://velocity-1.gitbook.io/velocity-docs/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://velocity-1.gitbook.io/velocity-docs/trading/leverage-and-margin.md).

# Leverage and margin

Perps are margin-traded. You post collateral, and the venue lets you trade a multiple of it. That multiple is your leverage.

## Max leverage

Each venue sets a max leverage per asset based on liquidity. The order panel slider clamps to the live cap.

| Asset class                     | Typical cap      |
| ------------------------------- | ---------------- |
| BTC                             | 40x              |
| ETH                             | 25x              |
| Other major crypto              | 20-50x           |
| Long-tail crypto perps          | 5-20x            |
| Stocks (TSLA, NVDA, AAPL, etc.) | up to 50x        |
| FX, SP500                       | up to 50x        |
| Commodities (gold, oil)         | up to 25x        |
| Prediction markets              | 1x (no leverage) |

Caps change as venues retune. The slider always shows the live limit.

## Cross vs Isolated

Two margin modes. Toggle is below the leverage slider.

**Cross**: all positions share one pool of margin. Gains on one position offset losses on another. If account equity drops below maintenance margin, every position liquidates together.

**Isolated**: each position has its own margin. A loss can only burn the margin you posted to that trade. The rest of your account is safe, but there's no cushion from other positions.

You can't switch mode on an open position. Close first.

## Initial vs maintenance margin

* **Initial margin** is what gets locked when you open a position. At 10x leverage that's 10% of notional.
* **Maintenance margin** is the floor below which the venue liquidates. It's about half the initial margin.

## Liquidation price

The order panel footer estimates your liquidation price live. For an open position, the margin-health bar reads the venue's actual liquidation price. Trust the bar over the estimate.

## Funding

Leverage doesn't change funding cost. Funding is charged on notional, not margin. A $10k position at 1x pays the same funding as $10k at 10x.


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