> For the complete documentation index, see [llms.txt](https://docs.paragon.trade/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.paragon.trade/trading/margining.md).

# 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.

## Quick Summary

| Concept            | Description                                               |
| ------------------ | --------------------------------------------------------- |
| Collateral         | USDC only                                                 |
| Margin Mode        | See [Contract Specifications](/markets/specifications.md) |
| Max Leverage       | 50x                                                       |
| Initial Margin     | Position Size ÷ Leverage                                  |
| Maintenance Margin | Minimum to avoid liquidation (varies by market)           |

## Margin Modes

Hyperliquid supports three margin modes. Paragon markets support **Cross** and **Isolated** margin. For portfolio-level margining across positions, see [Portfolio Margin](https://hyperliquid.gitbook.io/hyperliquid-docs/trading/portfolio-margin).

| Mode              | Collateral Scope        | Liquidation Risk             | Margin Removal                 |
| ----------------- | ----------------------- | ---------------------------- | ------------------------------ |
| **Cross**         | Entire account balance  | Shared across positions      | Anytime                        |
| **Isolated**      | Per-position allocation | Contained to single position | Anytime                        |
| **Isolated-Only** | Per-position allocation | Contained to single position | Proportional to position close |

→ [Hyperliquid Margin Docs](https://hyperliquid.gitbook.io/hyperliquid-docs/trading/margining)

## Margin Requirements

### Initial Margin

Minimum collateral to open a position:

```
Initial Margin = Position Size ÷ Leverage
```

**Example:** At 50x leverage, a $10,000 position requires **$200** initial margin.

### Maintenance Margin

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

See [Contract Specifications](/markets/specifications.md) for Paragon-specific maintenance requirements.

## Leverage

Paragon markets support up to **50x 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            |
| 25x      | $1,000        | $40             |
| 50x      | $1,000        | $20             |

## Managing Your Margin

Monitor your margin ratio to stay above maintenance requirements:

```
Margin Ratio = Account Equity ÷ Position Value
```

**When margin ratio drops:**

* Reduce position size
* Close positions to free up margin

> **Note:** In Cross margin mode, your entire account balance serves as collateral for all positions. In Isolated margin mode, margin is dedicated per position. You can switch margin modes per position on the Hyperliquid interface.

For liquidation mechanics, see [Liquidations](/trading/liquidations.md).


---

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