Margin

📊 Margin Requirements on RocketFi

Each market on RocketFi has its own margin configuration, which determines how much leverage a trader can use before facing liquidation. When an account’s value drops below the required margin thresholds, liquidation is triggered.

RocketFi uses three levels of margin requirements, each with different implications:

• Initial Margin – Required to open a position

• Maintenance Margin – Minimum required to keep a position open

• Close-Out Margin – Threshold at which forced liquidation begins

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🧮 Margin Requirement Formulas

For each asset i, the following variables apply:

• $Si=∣positioni∣Si​=∣positioni​∣$

• $Ii=initial margin fractionIi​=initial margin fraction$

• $Mi=maintenance margin fractionMi​=maintenance margin fraction$

• $Ci=close-out margin fractionCi​=close-out margin fraction$

• $marki=current mark price of asset imarki​=current mark price of asset i$

Initial Margin Requirement: $∑Si×marki×Ii∑Si​×marki​×Ii​$

Maintenance Margin Requirement: $∑Si×marki×Mi∑Si​×marki​×Mi​$

Close-Out Margin Requirement: $∑Si×marki×Ci∑Si​×marki​×Ci​$

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💰 Account Value Calculation

Your account value is calculated as:

$Collateral+∑(markPricei−avgEntryPricei)×positioniCollateral+∑(markPricei​−avgEntryPricei​)×positioni​$

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⚠️ Margin Thresholds

RocketFi enforces the following relationship between margin levels:

$Ci<Mi<IiCi​<Mi​<Ii​$

This ensures that liquidation occurs progressively, giving traders time to manage risk before full close-out.