> ## Documentation Index
> Fetch the complete documentation index at: https://docs.roxom.com/llms.txt
> Use this file to discover all available pages before exploring further.

# How margin works on Roxom

> Learn how isolated margin, leverage, and collateral work on Roxom's trading platform.

When you open a futures position on Roxom, you put up **BTC as collateral** (called margin). Roxom uses **isolated margin** by default, which means each position is independent and has its own dedicated collateral.

***

## What is margin?

Margin is the BTC you commit as collateral to open and maintain a trading position. It determines:

* **How large a position you can open** (based on leverage)
* **When your position gets liquidated** (if losses eat into your margin)

All margin on Roxom is in **BTC**.

***

## Isolated margin: each position is independent

Roxom uses **isolated margin mode** for all positions. This means:

* Each position has its **own dedicated collateral**
* If one position is liquidated, your other positions and remaining account balance are **not affected**
* The maximum you can lose on any single position is the margin assigned to it

<Info>
  Think of it like separate wallets for each trade. A loss in one trade doesn't spill over into another.
</Info>

***

## Leverage: 1x to 10x

Leverage lets you open a larger position with less collateral. Roxom supports leverage from **1x to 10x**.

| Leverage      | Initial margin required | Example: 1 BTC position |
| :------------ | :---------------------- | :---------------------- |
| **1x**        | 100% of position        | 1 BTC collateral        |
| **2x**        | 50% of position         | 0.5 BTC collateral      |
| **5x**        | 20% of position         | 0.2 BTC collateral      |
| **10x** (max) | 10% of position         | 0.1 BTC collateral      |

<Warning>
  Higher leverage means **higher risk**. With 10x leverage, a relatively small price move against you can trigger liquidation. Make sure you understand the risks before using high leverage.
</Warning>

***

## Initial margin vs maintenance margin

### Initial margin (IM)

The BTC required to **open** a position. At 10x leverage, you need 10% of the position's value as initial margin.

### Maintenance margin (MM)

The minimum BTC required to **keep** a position open. On Roxom, maintenance margin is **25% of the initial margin**.

**Example with 10x leverage on a 1 BTC position:**

|                           | Amount    |
| :------------------------ | :-------- |
| Position size             | 1 BTC     |
| Initial margin (10%)      | 0.1 BTC   |
| Maintenance margin (2.5%) | 0.025 BTC |

If your losses reduce the equity in that position to the maintenance margin level (margin ratio = 100%), the position is **liquidated**.

***

## How margin ratio works

Your **margin ratio** shows how close a position is to liquidation:

```
Margin Ratio = Maintenance Margin / Position Equity
```

* **Low margin ratio**: Position is healthy
* **Approaching 80%**: Warning zone
* **100%**: Liquidation is triggered

<Tip>
  You can reduce your margin ratio by **adding more collateral** to the position, **reducing position size**, or **lowering leverage**. See [Understanding your margin ratio and liquidation price](/help-center/roxom-derivatives/understanding-your-margin-ratio-and-liquidation-price) for details.
</Tip>

***

## Key points

* Roxom uses **isolated margin**: each position is independent
* Leverage goes from **1x to 10x**
* **Maintenance margin is 25% of initial margin**
* Everything is in **BTC**
* If margin ratio hits 100%, the position is liquidated
* Cross-margin mode is planned for a future release

<Info>
  For the full technical specification, see the [Margin Rules](/rulebook/margin-rules/initial-and-maintenance-margin) section of the Rulebook.
</Info>

***

<Warning>
  This content is for informational purposes only and does not constitute investment advice. Trading digital assets involves significant risk, including the potential loss of your entire investment. Please review our [Risk Notice](/legal/risk-notice) before trading.
</Warning>

## Need help?

Still have questions? You can speak to **Roxy**, our AI support assistant, available 24/7 in the chat bubble at the bottom right of your screen.

You can also contact our support team directly at [help@roxom.com](mailto:help@roxom.com).

***

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