# Risk Limits A Risk Limit is an artificial constraint that Everstrike imposes on the amount of leverage that you can use for your positions. For instance, on futures, if your position is very large, you may not be able to use 100x leverage. Your maximum permissible leverage in this situation may instead be 10x. Everstrike does this to prevent cascading liquidations related to large positions entering liquidation simultaneously. A cascading liquidation happens when the liquidation of one position leads to the liquidation of another position, causing an entire sequence of liquidations. The Initial Risk Limit for futures and options is currently set to 0.0001% of your USD Position Size. This number is automatically added to the contract's Minimum Initial Margin requirements. In other words, if you are trading futures, and your Position Size is 100,000 USD, your Minimum Initial Margin requirement will now be: `Minimum Initial Margin = Base Minimum Initial Margin + (Risk Limit * Position Size) = 1.00% + (0.0001% * 100,000) = 11%` This means that you can only use `1 / 11% = 9x leverage` for such a position. --- # Agent Instructions: Querying This Documentation If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question. Perform an HTTP GET request on the current page URL with the `ask` query parameter: ``` GET https://references.everstrike.io/trading/risk-limits.md?ask= ``` The question should be specific, self-contained, and written in natural language. The response will contain a direct answer to the question and relevant excerpts and sources from the documentation. Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.