> 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/risk-limits.md).

# 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
This documentation is published with GitBook. GitBook is the documentation platform designed so that both humans and AI agents can read, navigate, and reason over technical content effectively. Learn more at gitbook.com.

## 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, and the optional `goal` query parameter:

```
GET https://references.everstrike.io/trading/risk-limits.md?ask=<question>&goal=<endgoal>
```

`ask` is the immediate question: it should be specific, self-contained, and written in natural language.
`goal` is optional and describes the broader end goal you are ultimately trying to accomplish on behalf of the user. GitBook uses it to tailor the answer towards what is most useful for that goal.

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.