Margin changes only, no technical / API or system changes
Change of leverage levels, position sizes and liquidation fees as of 11 January 2022
To align leverage levels, liquidation fees, and overall margin rules, Deribit will implement the following two changes as of 11 January 2022.
1 Leverage
-
Maximum of 50X leverage for Standard Margin accounts for BTC and ETH
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Leverage cap is enforced via an increase of the Initial Margin (IM) level to 2% (from 1% today) plus a further increase (Increase Factor) pending position sizes.
-
Furthermore, Maintenance Margin (MM) levels will be raised because of a change in the liquidation fee (see below).. The new MM level will be 1% instead of 0.525% today which means liquidation could be triggered earlier however the chance of positive equity or partial remaining open positions is higher due to the higher difference between the liquidation fees and the MM level.
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The change of IM cannot trigger liquidations, it will merely prevent high leverage positions from being created however the change in MM could trigger liquidations for the very high maintenance margin levels just before the increase.
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Deribit will also change the Increase Factor for ETH from 0.0002% to 0.0004%, the Increase Factor for BTC will remain unchanged.
2 Liquidation fees
Deribit will raise BTC liquidation fees to 0.75%.
Summary of changes
|
Factor |
Current |
New |
|
BTC Initial Margin |
1% + (Position Size in BTC) * 0.005% |
2%+ (Position Size in BTC) * 0.005% |
|
ETH Initial margin |
2% + (Position Size in ETH) * 0.0002% |
2% + (Position Size in ETH) *0.0004% |
|
BTC Maintenance Margin |
0.525% + (PositionSize in BTC) * 0.005% |
1%+ (PositionSize in BTC) * 0.005% |
|
ETH Maintenance Margin |
1% + (PositionSize in ETH) * 0.0002% |
1% + (PositionSize in ETH) *0.0004% |
|
BTC Liquidation fees |
0.5% |
0.75% |
|
ETH Liquidation fees |
0.9% |
0.9% (Unchanged) |