Leverage & Margin

Leverage & Margin

Leverage is a powerful tool offered by Penals when trading NFTs on its perpetual swaps platform. It enables traders to enter positions with a fraction of the total value of the underlying NFT as collateral, providing the opportunity to amplify potential returns.

When trading NFTs on Penals, buyers are not required to put up the entire value of the underlying NFT. Instead, they can use a portion of the underlying value in ETH as collateral to open a position. This means traders can access larger positions and exposure to the NFT market with a smaller amount of capital.

Penals offers leverage for all perpetual contracts, using ETH as the quote asset for all markets. The platform currently supports cross-margin mode, which allows accounts to open multiple positions that share the same collateral. This provides flexibility for traders to diversify their portfolios and manage risk more effectively.

The maximum leverage available on Penals depends on the notional value of the positions. Larger positions typically have lower leverage, as risk management measures are in place to ensure the stability of the platform. Leverage is determined by the initial margin and the maintenance margin, which help maintain the required collateral to support the open positions.

By offering leverage, Penals empowers traders to optimize their capital utilization and potentially increase their profits. However, it's important to note that leverage also amplifies risk exposure, so traders should exercise caution and employ proper risk management strategies when utilizing leverage in their NFT trading activities.

Initial Margin

The Initial Margin is the minimum amount of funds required to open a position.

Initial Margin Calculation:

$Initial Margin = Position Value\times (Initial Margin Rate \times Contract Risk Factor+ Tiered Adjustment Factor)$

Where:

• $Position Value = Average Open Price \times Contract Quantity \times Contract Size$

• $Average Open Price = \frac{volume1 \times Price1+volume2\times Price2 + ... + volume N\times Price N}{volume1+volume2+...+volume N}$

Maintenance Margin

The Maintenance Margin is the minimum fraction of the margin required to prevent liquidation. If the position collateral falls below the maintenance margin, the position will be liquidated.

The maintenance margin is calculated based on the position's notional value at different tiers. The maintenance margin rate and tiered adjustment factor increase with the position size, ensuring larger positions have higher margins to prevent liquidation.

Maintenance Margin Calculation:

$Maintenance Margin= Position Value\times (Maintenance Margin Rate\times Contract Risk Factor + Tiered Adjustment Factor)$

Where:

• $Position Value = Average Open Price \times Contract Quantity \times Contract Size$

• $Average Open Price = \frac{volume1 \times Price1+volume2\times Price2 + ... + volume N\times Price N}{volume1+volume2+...+volume N}$

Max leverage for each trading pair

BAYC/ETH

Notional Position Value(ETH)	Initial Margin	Maintenance Margin	Max Leverage
5	2.00%	1.00%	50
50	5.00%	2.50%	20
75	10.00%	5.00%	10
100	20.00%	5.00%	5
125	50.00%	5.00%	2

AZUKI/ETH

Notional Position Value(ETH)	Initial Margin	Maintenance Margin	Max Leverage
5	2.00%	1.00%	50
50	5.00%	2.50%	20
75	10.00%	5.00%	10
100	20.00%	5.00%	5
125	50.00%	5.00%	2

MAYC/ETH

Notional Position Value(ETH)	Initial Margin	Maintenance Margin	Max Leverage
5	2.00%	1.00%	50
15	5.00%	2.50%	20
30	10.00%	5.00%	10
45	20.00%	5.00%	5
60	50.00%	5.00%	2

CLONEX/ETH

Notional Position Value(ETH)	Initial Margin	Maintenance Margin	Max Leverage
1	2.00%	1.00%	50
5	5.00%	2.50%	20
15	10.00%	5.00%	10
20	20.00%	5.00%	5
25	50.00%	5.00%	2

DOODLE/ETH

Notional Position Value(ETH)	Initial Margin	Maintenance Margin	Max Leverage
1	2.00%	1.00%	50
5	5.00%	2.50%	20
15	10.00%	5.00%	10
20	20.00%	5.00%	5
25	50.00%	5.00%	2

MOONBI/ETH

Notional Position Value(ETH)	Initial Margin	Maintenance Margin	Max Leverage
1	2.00%	1.00%	50
5	5.00%	2.50%	20
15	10.00%	5.00%	10
20	20.00%	5.00%	5
25	50.00%	5.00%	2

PENGUI/ETH

Notional Position Value(ETH)	Initial Margin	Maintenance Margin	Max Leverage
1	2.00%	1.00%	50
5	5.00%	2.50%	20
15	10.00%	5.00%	10
20	20.00%	5.00%	5
25	50.00%	5.00%	2

NAKAMI/ETH

Notional Position Value(ETH)	Initial Margin	Maintenance Margin	Max Leverage
1.5	2.00%	1.00%	50
3	5.00%	2.50%	20
7.5	10.00%	5.00%	10
15	20.00%	5.00%	5
22.5	50.00%	5.00%	2

OTHERD/ETH

Notional Position Value(ETH)	Initial Margin	Maintenance Margin	Max Leverage
1	2.00%	1.00%	50
5	5.00%	2.50%	20
15	10.00%	5.00%	10
20	20.00%	5.00%	5
25	50.00%	5.00%	2

PUNKS/ETH

Notional Position Value(ETH)	Initial Margin	Maintenance Margin	Max Leverage
5	2.00%	1.00%	50
50	5.00%	2.50%	20
75	10.00%	5.00%	10
100	20.00%	5.00%	5
125	50.00%	5.00%	2

DEGODS/ETH

Notional Position Value(ETH)	Initial Margin	Maintenance Margin	Max Leverage
5	2.00%	1.00%	50
15	5.00%	2.50%	20
30	10.00%	5.00%	10
45	20.00%	5.00%	5
60	50.00%	5.00%	2

MILADY/ETH

Notional Position Value(ETH)	Initial Margin	Maintenance Margin	Max Leverage
1	2.00%	1.00%	50
5	5.00%	2.50%	20
15	10.00%	5.00%	10
20	20.00%	5.00%	5
25	50.00%	5.00%	2

KODA/ETH

Notional Position Value(ETH)	Initial Margin	Maintenance Margin	Max Leverage
5	2.00%	1.00%	50
15	5.00%	2.50%	20
20	10.00%	5.00%	10
25	20.00%	5.00%	5
30	50.00%	5.00%	2

CAPT/ETH

Notional Position Value(ETH)	Initial Margin	Maintenance Margin	Max Leverage
1	2.00%	1.00%	50
5	5.00%	2.50%	20
15	10.00%	5.00%	10
20	20.00%	5.00%	5
25	50.00%	5.00%	2

POTATO/ETH

Notional Position Value(ETH)	Initial Margin	Maintenance Margin	Max Leverage
1	2.00%	1.00%	50
5	5.00%	2.50%	20
15	10.00%	5.00%	10
20	20.00%	5.00%	5
25	50.00%	5.00%	2

BAKC/ETH

Notional Position Value(ETH)	Initial Margn	Maintenance Margin	Max Leverage
1	2.00%	1.00%	50
5	5.00%	2.50%	20
15	10.00%	5.00%	10
20	20.00%	5.00%	5
25	50.00%	5.00%	2

BEANZ/ETH

Notional Position Value(ETH)	Initial Margin	Maintenance Margin	Max Leverage
1	2.00%	1.00%	50
5	5.00%	2.50%	20
10	10.00%	5.00%	10
15	20.00%	5.00%	5
20	50.00%	5.00%	2

PIXELM/ETH

Notional Position Value(ETH)	Initial Margin	Maintenance Margin	Max Leverage
0.5	2.00%	1.00%	50
1	5.00%	2.50%	20
5	10.00%	5.00%	10
10	20.00%	5.00%	5
20	50.00%	5.00%	2

MEEBIT/ETH

Notional Position Value(ETH)	Initial Margin	Maintenance Margin	Max Leverage
1	2.00%	1.00%	50
5	5.00%	2.50%	20
10	10.00%	5.00%	10
15	20.00%	5.00%	5
20	50.00%	5.00%	2

REMILI/ETH

Notional Position Value(ETH)	Initial Margin	Maintenance Margin	Max Leverage
0.5	2.00%	1.00%	50
1	5.00%	2.50%	20
2.5	10.00%	5.00%	10
5	20.00%	5.00%	5
10	50.00%	5.00%	2

KUBZ/ETH

Notional Position Value(ETH)	Initial Margin	Maintenance Margin	Max Leverage
0.5	2.00%	1.00%	50
1	5.00%	2.50%	20
2.5	10.00%	5.00%	10
5	20.00%	5.00%	5
10	50.00%	5.00%	2

MFERS/ETH

Notional Position Value(ETH)	Initial Margin	Maintenance Margin	Max Leverage
0.5	2.00%	1.00%	50
1	5.00%	2.50%	20
2.5	10.00%	5.00%	10
5	20.00%	5.00%	5
10	50.00%	5.00%	2

OPEPEN/ETH

Notional Position Value(ETH)	Initial Margin	Maintenance Margin	Max Leverage
0.5	2.00%	1.00%	50
1	5.00%	2.50%	20
2.5	10.00%	5.00%	10
5	20.00%	5.00%	5
10	50.00%	5.00%	2

0N1/ETH

Notional Position Value(ETH)	Initial Margin	Maintenance Margin	Max Leverage
0.5	2.00%	1.00%	50
1	5.00%	2.50%	20
2.5	10.00%	5.00%	10
5	20.00%	5.00%	5
10	50.00%	5.00%	2

PANDA/ETH

Notional Position Value(ETH)	Initial Margin	Maintenance Margin	Max Leverage
0.5	2.00%	1.00%	50
1	5.00%	2.50%	20
2.5	10.00%	5.00%	10
5	20.00%	5.00%	5
10	50.00%	5.00%	2

AELEM/ETH

Notional Position Value(ETH)	Initial Margin	Maintenance Margin	Max Leverage
0.5	2.00%	1.00%	50
1	5.00%	2.50%	20
2.5	10.00%	5.00%	10
5	20.00%	5.00%	5
10	50.00%	5.00%	2

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