🗞️Key Terms and Definitions

Unrealized Profit and Loss (UPNL)

UPNL reflects the potential gains or losses of an open position, calculated based on the difference between the entry price and the current market price.

Open Interest (OI)

OI represents the total value of active perpetual contracts. It is a measure of market activity and liquidity. Once OI reaches its limit, no new trades can be opened until existing positions are closed.

Account Health

Account Health, shown as a percentage, measures the overall condition of a trader's positions. If the Equity Balance falls to the level of the Maintenance Margin, liquidation is triggered.

Formula: Account Health = (Equity Balance - Maintenance Margin) / Equity Balance

Maintenance Margin (CVA)

This is the minimum amount a trader must maintain to avoid liquidation. If the account’s Equity Balance (including UPNL) reaches this level, liquidation becomes imminent.

Equity Balance

The Equity Balance includes a trader’s current account balance and UPNL, showing the overall financial health of the account.

Formula: Equity Balance = Allocated Balance + UPNL

Allocated Balance

This refers to the funds that a trader has set aside in a Margin Sub-Account for trading purposes. These funds are subject to a Fraud Proof interval before they can be withdrawn.

Initial & Locked Margin

The Initial Margin is what is required to open a position, which then becomes part of the Locked Margin—the total margin tied up in active trades. The Locked Margin helps manage risk by limiting the number of open positions.

Available for Orders

This represents the funds still available in the account for opening new positions or placing orders.

Formula: Available for Orders = Equity Balance - Locked Margin - Maintenance Margin