> 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

Risk Limits apply only to **Isolated Margin** positions. They increase the minimum initial margin as USD position size grows.

This reduces the maximum leverage available for large positions. It helps limit cascading liquidations, where one liquidation triggers others.

{% hint style="info" %}
Cross Margin does not use these Risk Limits. See [Margin Requirements](/trading/margin-requirements.md) for Cross Margin requirements.
{% endhint %}

### Initial Risk Limit

The Initial Risk Limit for futures and options is currently `0.0001%` of USD position size.

Everstrike adds this amount to the contract's base minimum initial margin requirement:

```
Minimum Initial Margin = Base Minimum Initial Margin + (Risk Limit × Position Size)
```

### Example

For an isolated futures position of `100,000 USD`:

```
Minimum Initial Margin = 1.00% + (0.0001% × 100,000) = 11%
```

The maximum leverage for this position is therefore:

```
1 ÷ 11% = 9×
```

Large isolated positions may therefore support less leverage than smaller positions.