The IM and MM will be calculated on symbol level. This means for each symbol, taking into account both the position and open orders, there is an IM and a MM.
IM | = Order-Adjusted Position Size / Leverage |
MM | = Order-Adjusted Position Size * MMR where: (1) User “Order-Adjusted Position Size” to check the Tier (2) Check the MMR from the corresponding Tier |
If a user initially sets their position at a leverage, GRVT will:
Get the Max Position Size
Fix the IMR (1/leverage)
Apply a tiered model to MMR
| Specification | Example 1 (Leverage = 40) | Example 2 (Leverage = 30) |
Max Position Size |
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IMR (including Open Order Initial Margin) | IMR is always 1/ Leverage | IMR = 1/ 40 = 2.5% | IMR = 1/ 30 = 3.333% |
MMR | MMR does not depend on leverage. It depends on the total size and applies a tier model based on the size range. | Depending on the total size, the MMR can be either Tier 1 or 2. So at most 1.25% | Depending on the total size, the MMR can be either Tier 1, 2, or 3. So at most 1.75% |
Note:
Since we have already imposed a Max Position Size, the tiered model of MMR will guarantee that MMR will always be less than the IMR.
In the above table, the Margin Balance’s calculation is important.
If there are multiple products in the portfolio, the Margin Balance for determining the Max Position Size of a specific perpetual or future will exclude the IMs occupied by other products.
Limiting the Max Position Size
GRVT introduces a variable called “Order-Adjusted Position Size”, which incorporates both existing positions and open orders.
Existing Position Size + Size of all Open Orders with the Same Direction of Position
Existing Position Size - Size of all Open Orders with the Opposite Direction of Position
Take Max ( abs(1), abs(2) )
The following are some examples:
| Example 1 | Example 2 | Example 3 |
Positon | Long 50 BTC | Long 50 BTC | Long 50 BTC |
Opening Orders | Long 10 BTC Short 20 BTC | Long 10 BTC Short 200 BTC | Short 20 BTC |
Order-Adjusted Position Size | Max(50+10, 50-20) = 60 | Max(50+10, Abs(50-200)) = 150 | Max(50+0, 50-20) = 50 |
Users are only allowed to place new orders subject to: “Order-Adjusted Position Size” is less than or equal to Max Position Size.