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 Market Parameters
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.

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

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 Market Parameters 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.