Position Bracket Explained

What is Position Bracket?

Position Bracket is a system that calculates maintenance margin requirements based on the size of your position and the tier it falls into.

As your position size increases:

• Maximum leverage decreases
• Maintenance margin requirements increase

This system helps protect both traders and the platform from excessive liquidation risk.

Tier Table Example

Note: Specification varies depending on the token. Check the Trading Rules Page for details.

Column Definitions

• Position Size (USDT)
  Your total notional position value used to determine the Tier.
• Max Leverage
  Highest leverage allowed in that Tier.
• MMR (Maintenance Margin Rate) and Maintenance Amount
  Used to calculate the required maintenance margin.

Maintenance Margin Formula

Maintenance Margin (USDT) = Notional Position Value × MMR − Maintenance Amount

Scenario 1: Isolated Margin Mode

In Isolated Margin, Flipster evaluates:

• Order placement: using Average Entry Price (entry-based value)
• Liquidation risk / Maintenance Margin: using Mark Price (real-time value)

1) Initial Open (No Existing Position)

If you do not have any open positions, your Tier is determined directly by the size of your new order.

Case A: Opening in Tier 1

• Position opened: 200,000 USDT
• Tier: 0 - 300,000 → Tier 1
• Max leverage: 150×

Maintenance Margin: 200,000 × 0.33% − 0 = 660 USDT

Case B: Opening in Tier 2

• Position opened: 500,000 USDT
• Tier: 300,000 - 750,000 → Tier 2
• Max leverage: 100×

Maintenance Margin: 500,000 × 0.50% − 510 = 1,990 USDT

 

2) After Price Increases (Mark Price Goes Up)

Assume you opened 200,000 USDT in Tier 1 and the Mark Price doubles.

• Entry-based value: 200,000 USDT (unchanged)
• Mark-price value: 400,000 USDT

2-1) Maintenance Margin Adjusts Automatically

Maintenance margin always follows the Mark Price.

• Current mark-price value: 400,000 USDT
• Tier changes from Tier 1 → Tier 2

New Maintenance Margin: 400,000 × 0.50% − 510 = 1,490 USDT

Result: Required maintenance margin increases from 660 → 1,490 USDT. If your available margin cannot cover this, liquidation risk increases.

2-2) Adding to Position (Tier Remains the Same)

You add 100,000 USDT.

In Isolated Margin, tier checks use entry-based value:

• Existing position (entry): 200,000
• New order: 100,000
• Total: 300,000 → still Tier 1

Max leverage remains 150×.
Result: Even though your mark-price value is already 400,000 USDT, the system still treats your position as 200,000 USDT for order-tier checks, allowing you to remain in Tier 1.

2-3) Adding to Position (Tier Changes)

You add 200,000 USDT instead:

• Existing position (entry): 200,000
• New order: 200,000
• Combined: 400,000 → Tier 2
• Tier 2 max leverage: 100×

Flipster must now ensure the total effective leverage does not exceed 100×.

How Flipster calculates the new order’s max leverage:

1. Existing margin
   200,000 ÷ 150 = 1,333 USDT
2. Required total margin at 100×
   400,000 ÷ 100 = 4,000 USDT
3. Margin needed for the new order
   4,000 − 1,333 = 2,667 USDT
4. Max leverage for new order
   200,000 ÷ 2,667 ≈ 75×

Result: Although Tier 2 allows up to 100×, your new order is limited to ~75× so that total leverage is brought down to Tier 2 limits.

Scenario 2: Cross Margin Mode

In Cross Margin, Flipster uses Mark Price for both order-tier checks and liquidation.

After Price Increase

Initial position: 200,000 USDT
Mark Price doubles → 400,000 USDT

This 400,000 USDT becomes your official position size immediately.
 

Adding 100,000 USDT

• Existing (mark): 400,000
• New: 100,000
• Total: 500,000 → Tier 2

Effective leverage capped at 100×
Unlike Isolated Margin, price appreciation is included instantly, pushing you into Tier 2.

Adding 400,000 USDT

• Existing (mark): 400,000
• New: 400,000
• Total: 800,000 → Tier 3
• Tier 3 max leverage: 75×

New Order Leverage

1. Existing margin
   400,000 ÷ 150 = 2,667 USDT
2. Required margin at 75×
   800,000 ÷ 75 = 10,667 USDT
3. New margin needed
   10,667 − 2,667 = 8,000 USDT
4. Max leverage for new order
   400,000 ÷ 8,000 = 50×

Result: Even though Tier 3 allows 75×, your new order is limited to ~50× to ensure total effective leverage stays within Tier 3 limits.

Key Takeaways

• Maintenance margin always follows the Mark Price.
• Isolated Margin
  • Order-tier checks use Avg Entry Price
  • Liquidation uses the Mark Price
• Cross Margin
  • Both order-tier checks and liquidation use Mark Price
• Moving into higher tiers:
  • Reduces maximum leverage
  • Increases maintenance margin
  • May force new orders to use lower leverage to keep total effective leverage within tier limits.

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