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 the 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.

Risk Warning: Trading in cryptocurrency involves risk and potential losses. Before trading, please make your investment decisions cautiously by considering your investment objectives, experience, and risk tolerance. You are solely responsible for your investment decisions, and Flipster is not liable for any losses you may incur. Derivatives trading, in particular, is subject to high market risk and price volatility. Please obtain independent advice where appropriate. This information should not be construed as financial or investment advice. 

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