01
Funding rate, capped and converging.
8-hour intervals · interest + premium index · hard caps prevent flash payouts in thin markets.
PERP FUTURES
Perps,
built to be measured.
Deep books. Funding rate that converges. Cross-margin across positions. Worst-first partial liquidation + insurance + ADL — explained, not hidden. Every fill is conservation-locked through the ledger.
MECHANICS
How a fill actually settles.
From ingress to ledger in five stages, each backed by a real mechanism. Liquidation is explained honestly here — it's the part exchanges usually hide.
02
Maintenance margin, plain language.
Tiered by notional. Margin requirement scales smoothly — no cliff edges. You see the curve, not just the equation.
03
Worst-first partial liquidation.
The position closest to ruin gets reduced first, in slices. Recovery of margin health is the goal, not full closure.
04
Insurance fund, then ADL.
The insurance fund absorbs adverse fills. If exhausted, ADL kicks in via the most-profitable, highest-leverage rank — transparently.
05
Fills are conservation-locked.
Every settlement is a pair of double-entry transfers. The conservation gate verifies cache ↔ ledger lockstep on every batch.
A POSITION, OVER TIME
What a held position lives through.
Once a fill settles, three mechanisms govern the position until it closes — the funding it exchanges, the margin it must keep, and the cascade if it cannot.
While it's held · funding
Funding is exchanged every eight hours.
A held position pays or receives funding on an 8-hour cadence — an interest-rate component plus a premium index — with hard caps that stop flash payouts on a thin market. The rate is built to converge, not to spike.
Check it: 8-hour interval, interest + premium index, capped.
As risk rises · maintenance
Maintenance margin scales by notional.
The maintenance requirement is tiered by notional and moves as a smooth curve — no cliff edge to fall off. You watch the curve approach as size grows, not a hidden trigger.
Check it: tiered by notional, smooth curve, no cliff.
If it breaks · the cascade
Worst-first, then the backstops.
The position closest to ruin is reduced first, in slices, to recover margin health rather than close everything. If a fill clears adverse, the insurance fund absorbs it; only if that is exhausted does ADL step in — ranked by profit × leverage, in the open.
Check it: worst-first partial → insurance fund → ranked ADL.
THE RISK POOL
Risk you can see coming.
A perp position sits in the same cross-margin risk pool as the rest of the account. The model is stated in words, not buried in a formula — cross by default, worst-first liquidation, insurance before ADL.
Margin model
Cross + isolated
Cross-margin by default across positions; per-symbol isolated when you want a wall.
Liquidation
Worst-first, partial
The position closest to ruin is reduced first, in slices — not a blanket close.
Backstop
Insurance fund
Absorbs adverse liquidation fills before any socialised step is reached.
Last resort
ADL, ranked
Only if the insurance fund is exhausted — ranked by profit × leverage, visible to all.
DETAILS
Questions, answered straight.
How liquidation, ADL, funding, and the maintenance margin actually behave on a held position.
What happens at liquidation?
Liquidation begins as a worst-first partial reduction: the position closest to ruin is cut first, in slices, to recover margin health rather than close everything at once. If those fills clear at adverse prices the insurance fund covers the difference, and only if the fund is exhausted does ADL step in — ranked by profit × leverage, visible to every account. Full closure follows only if the partial slices cannot restore health.
What is ADL, and when does it fire?
Auto-deleveraging is the last resort, and it fires only after the insurance fund is exhausted. Counterparties that absorb the offset are ranked by profit × leverage — the most profitable, highest-leverage opposing positions first — and the rank is computed at trigger time and shown in each account dashboard, not chosen behind the scenes.
How does funding affect a held position?
A held position exchanges funding on an 8-hour cadence — an interest-rate component plus a premium index — with hard caps that prevent flash payouts on a thin market. The rate is designed to converge rather than spike, so carrying a position is a predictable cost rather than a surprise, and the interval and caps are stated up front.
What is maintenance margin, in plain terms?
It is the minimum margin a position must keep to stay open, tiered by notional so the requirement scales as a smooth curve instead of a single cliff edge. You can watch the curve approach as size grows rather than discovering a hidden trigger — the maintenance model is shown, not buried in an equation.
KEEP READING
Where the position is settled.
The risk pool it shares, the fees it pays, and the engine that books every fill.