> For the complete documentation index, see [llms.txt](https://references.everstrike.io/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://references.everstrike.io/trading/margin-requirements.md).

# Margin Requirements

All contracts on Everstrike are USD-margined.

Cross Margin is the default. Positions share the same margin pool.

Traders can optionally switch to Isolated Margin.

Portfolio Margin is not currently supported.

This page defines the minimum initial and maintenance margin requirements for perpetual futures and perpetual options.

{% hint style="info" %}
The formulas below define minimum required margin. If margin falls below the maintenance requirement, the position can become subject to [liquidation](/trading/liquidation.md).
{% endhint %}

### Perpetual futures

| Property                | Value                                                       |
| ----------------------- | ----------------------------------------------------------- |
| Min. Initial Margin     | 0.01 \* Position Size + Abs(Funding Rate) \* Position Size  |
| Min. Maintenance Margin | 0.005 \* Position Size + Abs(Funding Rate) \* Position Size |
|                         |                                                             |

### Perpetual options

#### Long options

| Property                            | Value                                                      |
| ----------------------------------- | ---------------------------------------------------------- |
| Min. Initial Margin (Long Call)     | 1.00 \* Position Size + Abs(Funding Rate) \* Position Size |
| Min. Initial Margin (Long Put)      | 1.00 \* Position Size + Abs(Funding Rate) \* Position Size |
| Min. Maintenance Margin (Long Call) | 0.50 \* Position Size + Abs(Funding Rate) \* Position Size |
| Min. Maintenance Margin (Long Put)  | 0.50 \* Position Size + Abs(Funding Rate) \* Position Size |

#### Short options

| Property                             | Value                                                                                                                                                                                  |
| ------------------------------------ | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- |
| Min. Initial Margin (Short Call)     | Max (0.06 \* Underlier Index Price - OTM Amount/Underlier Index Price, 0.04 \* Underlier Index Price) + Mark Price + Abs(Funding Rate) \* Position Size                                |
| Min. Initial Margin (Short Put)      | Max (Max (0.06 \* Underlier Index Price - OTM Amount/Underlier Index Price, 0.04 \* Underlier Index Price) + Mark Price, Min. Maintenance Margin) + Abs(Funding Rate) \* Position Size |
| Min. Maintenance Margin (Short Call) | 0.02 \* Underlier Index Price + Mark Price + Abs(Funding Rate) \* Position Size                                                                                                        |
| Min. Maintenance Margin (Short Put)  | Max (0.02 \* Underlier Index Price, 0.02 \* Mark Price) + Mark Price + Abs(Funding Rate) \* Position Size                                                                              |

{% hint style="info" %}
`Abs(Funding Rate)` is capped at `0.3%` for perpetual futures and `10%` for perpetual options.
{% endhint %}

### Definitions

* *Abs(Funding Rate)* refers to the absolute value of the [Funding Rate](/trading/funding.md).
* *Underlier* refers to the underlying asset of the derivatives contract.
* *OTM Amount* refers to the out-of-the-money (OTM) amount of the options contract. An options contract that is $1,000 out-of-the-money will have an *OTM Amount* of $1,000.
* *Underlier Index Price* refers to the [Index Price](/trading/index-price.md) of the underlying asset.
* *Mark Price* refers to the [Mark Price](/trading/mark-price.md).