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

# Leverage and margin

> How the multiplier, margin modes, and margin requirements work on Liquid.

Leverage (the **multiplier** in the app) lets you open a position larger than the collateral you put up. At 10x, \$100 of margin controls a \$1,000 position. Gains and losses are both calculated on the full position, so leverage magnifies both.

<video src="https://mintcdn.com/liquidmax/ZpdO2omYJ64poyVN/videos/trading/leverage-multiplier.mp4?fit=max&auto=format&n=ZpdO2omYJ64poyVN&q=85&s=36e4cab5366a660d5d8e795985922be4" autoPlay loop muted playsInline aria-label="Side by side, the same $100 of margin and the same 5% price move. At 1x, a $100 position gains or loses $5. At 10x, a $1,000 position gains or loses $50, which is 50% of your margin, in either direction." />

## Choose your multiplier

Set the multiplier on the order form before you place the order: the **Leverage** slider on iOS, or the leverage control in the web order panel. You can pick any whole number from 1x up to the market's maximum. The maximum depends on the market; crypto perps go up to 40x. See [Markets](https://docs.liquid.trade/markets/markets-overview.md).

The order form shows your **Liquidation Price** before you confirm. The higher the multiplier, the closer it is to your entry price.

The margin needed to open a position is:

$$
\text{Initial margin} = \frac{\text{Position size} \times \text{Mark price}}{\text{Leverage}}
$$

Leverage is only checked when you open or add to a position. After that, losses raise your effective leverage, so keep an eye on your liquidation price. You can raise the multiplier of an open position without closing it.

## Cross and isolated margin

<video src="https://mintcdn.com/liquidmax/ZpdO2omYJ64poyVN/videos/trading/margin-modes.mp4?fit=max&auto=format&n=ZpdO2omYJ64poyVN&q=85&s=0317d2e1f521b85a7678ed2523ded4cf" autoPlay loop muted playsInline aria-label="On the left, cross margin: two positions share one pool, so a loss on position A drains the pool and position B's buffer shrinks too. On the right, isolated margin: each position has its own bucket, so the same loss empties only A's bucket." />

Cross versus isolated margin

| | Cross (default) | Isolated |
| - | - | - |
| Collateral | Shared across all your cross positions | Set aside for one position |
| Unrealized profit | Can back new positions | Stays with that position as extra margin |
| If it's liquidated | Can take all your cross positions and cross margin | Only that position and its margin |
| Adjust margin | Deposit more USDC to your balance | Add or remove margin on the position |

Use cross for capital efficiency across several positions. Use isolated to cap what one trade can lose.

On web, pick **Cross** or **Isolated** in the order panel. Some markets are isolated only, and some are *strict isolated*: you can't remove margin while the position is open; it's released as you close the position.

On a [unified account](https://docs.liquid.trade/account/move-funds.md), cross positions on different markets share the same margin.

## Add or remove margin

For an isolated position, add margin to push your liquidation price further away, or remove extra margin to free up balance. On iOS, open the position and tap **Update Margin**. On web, use **Adjust Margin** on the position row. See [Manage and close positions](https://docs.liquid.trade/trading/managing-positions.md).

You can withdraw or move unrealized profit only if the margin left behind covers the largest of your initial margin, 10% of the total value of your open positions, and \$10:

$$
\text{Margin left} \geq \max(\text{\$10}, \text{Initial margin}, 10\% \times \text{Total position value})
$$

This applies to withdrawals, transfers, and removing isolated margin.

## Maintenance margin

Maintenance margin is the minimum collateral a position needs to stay open. It's half of the initial margin at the market's maximum leverage: 1.25% of the position for a 40x market, up to 16.7% for a 3x market.

* **Cross:** you're liquidated when your account value, including unrealized PnL, falls below the maintenance margin of all your cross positions.
* **Isolated:** only the position's own margin and size count.

See [Liquidations](https://docs.liquid.trade/trading/liquidations.md) for what happens next, and set a [stop loss](https://docs.liquid.trade/trading/take-profit-stop-loss.md) so you exit before it gets there.


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