Margining

Paragon perpetuals use USDC as collateral and follow Hyperliquid's standard margin mechanics. Understand margin modes, requirements, and leverage to manage your positions effectively.

→ Hyperliquid Margin Trading

Quick Summary

Concept	Description
Collateral	USDC only
Margin Modes	Cross (default) or Isolated
Max Leverage	20x
Initial Margin	Position Size ÷ Leverage
Maintenance Margin	Minimum to avoid liquidation (varies by market)

Margin Modes

Choose how collateral backs your positions.

Note: HIP-3 markets (including Paragon markets) currently support isolated margin only.

Aspect	Cross Margin	Isolated Margin
Collateral scope	Entire account balance	Per-position allocation
Capital efficiency	Higher	Lower
Liquidation impact	Affects whole account	Limited to single position
Risk isolation	Shared across positions	Contained per trade
Management	Simpler	Requires active monitoring
Best for	Diversified portfolios	High-conviction trades with capped risk

Margin Requirements

Initial Margin

Minimum collateral to open a position:

Initial Margin = Position Size ÷ Leverage

Example: At 20x leverage, a $10,000 position requires $500 initial margin.

Maintenance Margin

Minimum collateral to keep a position open. Falling below this threshold triggers liquidation eligibility.

See Market Parameters for Paragon-specific maintenance requirements.

Leverage

Paragon markets support up to 20x leverage. Higher leverage amplifies both gains and losses proportionally.

Leverage	Position Size	Required Margin
1x	$1,000	$1,000
5x	$1,000	$200
10x	$1,000	$100
20x	$1,000	$50

Managing Your Margin

Monitor your margin ratio to stay above maintenance requirements:

Margin Ratio = Account Equity ÷ Position Value

When margin ratio drops:

• Add collateral to the position

• Reduce position size

• Close positions to free up margin

For liquidation mechanics, see Liquidations.

→ Hyperliquid Margin Details