Understanding Margin on Vertex: A Trader's Guide

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1/ Making sense of Margin on Vertex. Vertex’s cross-margin framework is designed to improve capital efficiency 🏔️ Understanding Vertex’s design & terms like margin usage, funds available & how to utilize will help you as a trader. Let’s get up to speed on what it all means 👇

2/ This short thread is a summary of our recently published blog on all things Margin. To learn more about these important concepts and terms, we suggest giving it a read: blog.vertexprotocol.com/making-sense-of-margin-understanding-the-terms-on-vertex-2/

3/ Vertex’s Cross-Margin design. On Vertex, your portfolio is your margin - this means that users can utilize various assets as collateral, including pnl. - Margin is shared across positions.

4/ Why is this beneficial to traders on Vertex? Cross-margin provides traders with greater flexibility and capital efficiency through: • Position offsetting - losing position’s risk can be mitigated by winning positions.

5/ • Multiple Collaterals - Traders can use various collateral as margin for their positions, including spot and LP positions. • Diverse trading strategies & management - such as delta-neutral & spread trading

6/ Let's look at account info available on the app. ➡️ Margin Usage: The percentage of an account’s initial weighted collateral being used by initial margin requirements. ➡️ Funds Available: The collateral an account has to trade with. Also known as available or initial margin.

7/ Terms (continued) ➡️ Account Leverage: The multiplier of how much you're leveraging assets for existing positions & liabilities ➡️ Liquidation Risk: How close an account is to liquidation - (Maintenance Margin Usage, the amount of maintenance margin being used by positions).

8/ Terms (continued) ➡️ Funds Until Liq: The collateral an account has until it is eligible for liquidation. $0 = liquidation (riskiest positions will be liquidated until this is above $0)

9/ On Vertex, an account can have a variety of assets and liabilities Each asset and liability is given 2 weighted values (initial and maintenance weights). This will determine the collateral and margin requirements an account has to trade and not be liquidated.

10/ Interested in learning more about Vertex’s terms and design? Check out our linktree to get started: linktr.ee/vertex_protocol twitter.com/vertex_protocol/status/1600225640703176705?s=20