Effective Collateral & Size

Effective Collateral

A key concept for gauging the health of your Position is the effective_collateral of the trade. This isn't just collateral_usd, but rather the sum of the collateral_usd, the closing fee to close the Position, the profit or loss and any borrow_fees owed presently. If the sum of all of these together puts your effective leverage beneath the maximum leverage allowed by your Position, you will be liquidated.

If the value of effective_collateral would be less than 0 due to losses, it is assumed to be 0.

Effective Size

effective_size is size_usd (your loan + collateral_usd) plus profit, but not losses. Notably, it also does not include fees like closing or borrowing. It is primarily used to figure out your closing fees and whether or not you have pierced the max_size setting on your Position. The reason it does not include fees and losses is that when calculating fees, we do not want to give a discount on closing fees if you experienced losses, as you should pay the full fee for the size you took regardless of your performance in the market.