Margin & Leverage

Pacifica offers Cross Margin and Isolated Margin modes, providing traders flexibility in managing their risk exposure—either collectively across positions or individually per position. Margin mode is selected per trading pair (symbol), with Cross Margin as the default to optimize capital efficiency.

Note: Margin mode cannot be changed for symbols with open positions.

Cross Margin

Cross margin utilizes your entire account balance to support all open positions, increasing capital efficiency but potentially amplifying overall risk exposure.

Account Value Calculation:

account_value = account_cash_balance + pnl

Profit and Loss (PnL) for cross-margined positions update continuously as market prices fluctuate, excluding isolated margin positions.

Isolated Margin

Isolated margin assigns a dedicated margin amount to each individual position. Each position’s liquidation risk is managed independently, providing clearer risk management but potentially requiring higher overall margin.

Initial Margin Calculation

Regardless of margin mode, placing an order reserves initial margin based on your entry price, position size, selected leverage.

initial_margin = (position_size × entry_price / leverage)

Risk Management & Controls

Effective margin management is essential to protect traders and the exchange from potential market disruptions, liquidation cascades, and system exploitation. Pacifica incorporates advanced risk-control measures:

• Tiered Margin Requirements: Margin adjustments based on asset volatility, liquidity, and position size to maintain platform stability.

• Dynamic Margin Requirements: Margin requirements dynamica increase in initial margin requirements of new orders as the ratio of open position size to order book liquidity grows, mitigating outsized risk exposure.

• Withdrawal Controls: Restrictions on withdrawing collateral or unrealized gains during periods of extreme market volatility or when large positions pose stability risks.

These proactive risk management practices create a safer trading environment for all users.