> For the complete documentation index, see [llms.txt](https://docs.ticko.xyz/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.ticko.xyz/trading-on-ticko/margin-and-leverage.md).

# Margin and Leverage

## Margin modes

Ticko supports two margin modes, usable simultaneously within the same account.

| Mode            | Description                                                                                                                                            |
| --------------- | ------------------------------------------------------------------------------------------------------------------------------------------------------ |
| Cross margin    | All available balance in the account serves as shared margin across positions. Unrealized PnL from one position offsets margin requirements of others. |
| Isolated margin | Margin is allocated per position. Losses are limited to the assigned margin for that position.                                                         |

## Position modes

| Mode    | Description                                                                                                                     |
| ------- | ------------------------------------------------------------------------------------------------------------------------------- |
| One-way | One position per contract per direction. New orders in the same direction increase the position; opposite direction reduces it. |
| Hedge   | Simultaneous long and short positions on the same contract. Each side is managed independently.                                 |

## Leverage

Leverage is set per position. The effective leverage is capped by the tiered leverage limit for the contract. Higher position sizes require lower leverage.

## Collateral

USDT is the sole collateral asset.

## Margin calculations

| Term                    | Definition                                                                                                                                                                                                                                                                 |
| ----------------------- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- |
| Effective margin        | Account equity (collateral balance + unrealized PnL) minus amounts frozen by open orders, isolated position margins, and estimated closing fees. Represents the total margin available to support cross-margin positions.                                                  |
| Initial margin (IM)     | The margin required to open or increase a position. Calculated as position notional value divided by the selected leverage. Each open order also reserves initial margin.                                                                                                  |
| Maintenance margin (MM) | The minimum margin required to keep a position open. Calculated per position tier: each tier's notional is multiplied by that tier's maintenance margin rate plus the taker fee rate. Larger positions span multiple tiers and accumulate higher maintenance requirements. |
| Available margin        | Effective margin minus the sum of all initial margin requirements (positions + open orders). Determines how much additional exposure you can take.                                                                                                                         |
| Margin ratio            | Effective margin divided by total maintenance margin. A ratio at or below 100% triggers liquidation. Higher values indicate safer positions.                                                                                                                               |


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