In a significant move to enhance user experience, a leading cryptocurrency exchange has updated its margin tier system for ETH and EOS perpetual contracts. The key update is the introduction of a maximum leverage of up to 100x for eligible positions. This change allows traders to amplify their potential returns, though it also increases the risk of liquidation.
This adjustment provides greater flexibility for advanced traders looking to optimize their capital efficiency in the volatile crypto market.
Detailed Margin Tier Adjustments for EOS and ETH
The updated tier system defines different leverage limits and maintenance margin rates based on the size of a trader’s position. Here’s a breakdown of the new structure for both assets.
EOS Perpetual Contract Tiers
| Tier Level | Min Position (Cont) | Max Position (Cont) | Maintenance Margin Rate | Max Allowable Leverage |
|---|---|---|---|---|
| 1 | 0 | 249 | 0.75% | 100x |
| 2 | 250 | 4,999 | 1.50% | 40x |
| 3 | 5,000 | 24,999 | 2.00% | 30x |
| 4 | 25,000 | 37,499 | 3.00% | 25x |
| 5 | 37,500 | 49,999 | 4.00% | 20x |
| 6+ | Increments of 12,500 | Increments of 12,500 | Increases by 1% per tier | Determined by MMR |
ETH Perpetual Contract Tiers
| Tier Level | Min Position (Cont) | Max Position (Cont) | Maintenance Margin Rate | Max Allowable Leverage |
|---|---|---|---|---|
| 1 | 0 | 249 | 0.75% | 100x |
| 2 | 250 | 4,999 | 1.50% | 40x |
| 3 | 5,000 | 24,999 | 2.00% | 30x |
| 4 | 25,000 | 37,499 | 3.00% | 25x |
| 5 | 37,500 | 49,999 | 4.00% | 20x |
| 6+ | Increments of 12,500 | Increments of 12,500 | Increases by 1% per tier | Determined by MMR |
Note: "Cont" stands for contract units. The specific value per contract can vary.
Understanding the Risks and Rewards of High Leverage
Utilizing high leverage is a powerful tool that can significantly increase your potential profits by improving capital efficiency. However, this power comes with substantially increased risk. The higher the leverage, the smaller the price move required against your position to trigger a liquidation event.
It is crucial for all traders, especially those using high leverage, to have a robust risk management strategy in place. This includes using stop-loss orders, carefully calculating position sizes, and never investing more than you can afford to lose. 👉 Discover advanced risk management tools
The platform remains committed to providing a superior trading environment with continuous product improvements and high-quality service for all users.
Frequently Asked Questions
What does 100x leverage mean?
100x leverage means you can control a position worth 100 times your initial margin. For example, with $100, you could open a position worth $10,000. This amplifies both potential gains and losses.
Who is eligible for the highest leverage tiers?
The highest leverage of 100x is typically available for the smallest position sizes (Tier 1 in the tables above). As your position size increases, the maximum allowed leverage decreases to manage systemic risk.
How can I manage the risks of using high leverage?
Effective risk management is key. Always use stop-loss orders to define your maximum loss per trade. Additionally, avoid over-leveraging and ensure you have a deep understanding of how leverage and liquidation work before opening large positions. 👉 Learn more about hedging strategies
Are perpetual contracts the same as futures?
Perpetual contracts are a type of futures contract but with a key difference: they have no expiration or settlement date. This allows traders to hold positions for as long as they want, provided they can cover the funding rate payments.
What happens if my position gets liquidated?
Liquidation occurs when your losses reach the point where your remaining margin can no longer cover the maintenance margin requirement. At this point, the exchange will automatically close your position to prevent further losses, and you will lose your initial margin.
Is high-leverage trading suitable for beginners?
No, high-leverage trading is generally not recommended for beginners. The amplified risk of rapid, significant losses requires a strong understanding of market analysis, volatility, and sophisticated risk management techniques.