Trading Account and Margin

1. Margin Mode and Trading Account

Cross Margin: SunX currently supports the cross margin mode, which means all positions within your account share the same margin balance.

Isolated Margin: SunX temporarily does not support the isolated margin mode.

2. Liquidation

For details on the liquidation process, please refer to the Liquidation section.

3. Margin

In the futures market, you do not need to pay the full notional value of a trade. Instead, you just need to deposit a margin, a fraction of the contract value, as collateral to open and maintain positions. After a position is opened, the required margin is subject to change based on the last traded price.

Cross Margin Mode

SunX supports USDT as the primary margin asset. In cross margin mode, all positions under the same account, whether perpetual or delivery futures contracts, share the same account equity (i.e., USDT assets). Profits, losses, used margin, and margin ratio are calculated collectively.

Example: If User B holds a BTCUSDT perpetual position, an ETHUSDT perpetual position, and a BTCUSDT weekly delivery position in the cross margin mode, the USDT balance in the user's account backs all three positions, whose margin ratio will be calculated jointly. If the margin ratio exceeds 100%, the user faces potential liquidation on all three of their positions.

Note: Currently, SunX does not support the isolated margin mode. Please stay tuned for updates.

Margin Formula:

Position margin = Position value / Leverage

Example 1: Buy long 500 USDT worth of the BTCUSDT contract at a last price of 5,000 USDT per BTC, with 10x leverage. Position margin = 500 / 10 = 50 USDT

Example 2: Buy long 500 USDT worth of the ETHUSDT contract at a last price of 500 USDT per ETH, with 10x leverage. Position margin = 500 / 10 = 50 USDT

4. Margin Optimization for Hedged Positions

To improve capital efficiency and reduce margin requirements, SunX applies a margin offset mechanism when users hold hedged (long and short) positions of the same contract under the same margin mode.

New position margin = Long position margin + Short position margin - Locked margin * Locked margin offset

Position margin = Face value per contract * Position size * Last price / Leverage

Locked margin = min (Long position margin, Short position margin)

Note: In the cross margin mode, the new position margin equals the sum of the new position margins across all supported contracts.