In OSL’s USDC perpetual contracts trading, users can use leverage to control larger position sizes with less capital. To ensure trading safety and system stability, OSL has a well-designed margin and leverage mechanism to help keep risks under control.

Leverage

Leverage allows users to amplify their position size with a smaller amount of capital. For example, using 10x leverage means you only need to put up 10% of the position value as initial margin to open that position.

• The available leverage depends on the trading pair and your risk limit level.

• Higher leverage increases both potential gains and losses.

• As your position size grows, the available leverage will automatically adjust based on the risk limit mechanism.

Types of margin

Futures trading involves 2 main types of margin:

(1) Initial margin The minimum amount required to open a position. Example formula: Initial margin = Position value × Initial margin rate

For example, if you open a position worth 10,000 USDC and the initial margin rate is 5%, you’ll need 500 USDC as initial margin.

(2) Maintenance margin The minimum margin required to keep a position open. When your account equity falls below the maintenance margin level, liquidation will be triggered. Example formula: Maintenance margin = Position value × Maintenance margin rate

The maintenance margin rate increases with higher risk limit levels. The larger your position, the more maintenance margin is required.

Margin modes

OSL offers 2 margin modes that you can switch between before placing an order.

(1) Cross margin mode In cross margin mode, the available balance in the user’s account is shared among all open positions as maintenance margin. If one position incurs a loss, funds from other positions can be used to support it and reduce the risk of liquidation.

• Advantage: Reduces the chance of liquidation.

• Risk: In case of extreme market movements, overall account funds may be affected.

(2) Isolated margin mode – coming soon In isolated margin mode, each position has its own independent margin. If the position is liquidated, only that position is affected, and other positions in the account remain unaffected.

• Advantage: Controlled risk and limited losses.

• Best for: Short-term or high-leverage trading.

Liquidation mechanism

When a user's total account equity (including unrealized PnL) falls below the maintenance margin requirement, the system will automatically trigger liquidation:

• Cross margin mode: The system will partially or fully close positions to restore the required margin ratio;

• If the margin is still insufficient, the position will be fully liquidated;

• If the liquidation price is better than the bankruptcy price, the difference will be added to the insurance fund to cover potential system risks.

Dynamic adjustment of leverage and margin

• You can set your leverage before opening a position;

• When you increase your position size or leverage, the system automatically recalculates the required margin;

• If the account balance is insufficient to meet the new margin requirement, the adjustment will not be executed;

• When a position is partially closed, a portion of the margin will be released accordingly.

If you experience any issues or require further assistance, please contact the OSL Global Support Team through the app, platform, or by emailing [email protected]