Health Indicators
Health indicators are used to show what actions an account can take at various margin levels.
The Unified Trading Account risk is evaluated by comparing Margin, to various Margin Requirements.
The comparison result determines Account Health.
Margin Requirement Thresholds
Thresholds are calculated using a Market Risk Multiplier (MRM) that scales with account health, from 100% (Initial Margin) down to 25% (Defaulted).
Threshold(i) = (Market Risk)*MRM(i) + Liquidity Risk
The Market Risk Multipliers in place as at the launch of options are:
Margin Requirement Threshold | MarketRisk Multiplier |
|---|---|
Initial Margin Requirement (IMR) | 100% |
Warning Margin Requirement (WMR) | 75% |
Liquidation Margin Requirement (LMR) | 50% |
Defaulted Margin Requirement (DMR) | 25% |
Actions allowed per Account Health status
Health Indicator | Healthy | Monitor | Caution | Critical | Suspended |
|---|---|---|---|---|---|
Condition | Margin > IMR | WMR < Margin ≤ IMR | LMR < Margin ≤ WMR | DMR < Margin ≤ LMR | Margin ≤ DMR |
Borrow? |
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Trade to increase leverage? |
| (2) |
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Trade to decrease leverage? |
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Cancel orders? |
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| (4) | (4) |
Withdraw? |
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Transfer assets to another account? |
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Deposit assets? |
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Transfer assets to this account? |
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Create spot AMM Instructions? |
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Terminate spot AMM Instructions? |
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Create perpetual AMM Instructions? |
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Terminate perpetual AMM Instructions? |
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| (4) | (4) |
Notes:
Some automated borrowing may still occur.
Accounts containing options orders or options positions will not be reject risk-increasing orders in this health state. However we recommend that you avoid sending such orders.
Accounts containing options orders or options positions may not send risk-reducing orders in this health state. Instead we recommend supplying additional collateral to reduce your risk.
The liquidation engine will close all open orders and immediately close all AMM instructions.