When trading with leverage on Evedex, you might see messages like:
“Max Leverage limit for this Position Value — 25x”
“Min Leverage limit with this available balance — 20x”
Don’t worry; in this guide explains what they are, why they matter, and how to use the margin table on Evedex to better manage your risk and position size.
What Are Margin Parameters?
Margin parameters define how much money you need to set aside when opening a leveraged trade — and how much you need to keep that trade open.
On Evedex, this amount depends on a few key things:
How big your trade is
How much leverage you’re using
Which asset you’re trading
Current market conditions and liquidity
The system automatically adjusts these requirements depending on your position size. The larger the trade, the more protection (or “margin”) is needed to manage risk.
In other words:
Initial margin is the amount you need upfront to open the trade.
Maintenance margin is the minimum you must always keep in your account to avoid liquidation.
If that sounds abstract, here’s a quick example:
Let’s say you want to open a $1,000 trade with 10x leverage. That means you only need $100 of your own money (initial margin) — the rest is borrowed. But if the market moves against you, and your losses eat into that $100 too much, you’ll need to add more funds or risk being liquidated.
The platform uses two formulas in the background:
Initial Margin = Trade Size ÷ Leverage
Maintenance Margin = (Trade Size × Maintenance Margin Rate) – A Fixed Deduction
Why You Might See Leverage Limits
Let’s say you try to open a position with 3x leverage, but Evedex tells you the minimum leverage allowed is 20x. That means:
Your account balance is too low to support such a conservative position
Your position size is relatively small, and the system enforces minimum leverage bands to protect protocol integrity
In this case, you can either:
Increase your balance
Reduce your position size
Or simply use the minimum allowed leverage
Reading the Margin Table
You can view all margin limits for different markets on the Margin Parameters Page. Let’s break down how to read this data using a few examples from Evedex:
Example: AVAXUSDT (Cross Margin)
Leverage | Position Value (USDT) | Maintenance Margin Rate | Maintenance Deduction (USDT) |
50x | 500 | 1.00% | 0 |
40x | 625 | 1.25% | 1.25 |
25x | 750 | 2.00% | 3.44 |
10x | 875 | 5.00% | 19.06 |
1x | 1,000 | 50.00% | 374.69 |
The higher the leverage, the lower the required maintenance margin. However, if your position size increases, the system gradually increases the maintenance rate to ensure proper collateralization.
Final Notes
Always review the Margin Parameters Page before opening large or highly leveraged trades. Use the table to check the thresholds for your chosen asset — especially if you’re planning to scale position size.
The more you understand how margin works on Evedex, the more control you have over your leverage, your risk, and ultimately, your results.
For more detailed information about Margin Parameters, check the following category in whitepaper