> For the complete documentation index, see [llms.txt](https://crypta.gitbook.io/crypta/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://crypta.gitbook.io/crypta/probability-exchange/margin.md).

# Margin

#### Margin Used

Crypta uses an account-level collateral model where a trader's entire account balance acts as collateral for their open positions. A trader cannot lose more than their account balance.

Margin Used is calculated from the position quantity and the market's DeltaMax and is used to determine the account's Margin Level.

$$
Margin ; Used  = |Quantity| ; \*; \triangle \_{Max}
$$

DeltaMax is derived from a market's volatility, drift and Bernoulli jump parameters. It is calibrated to capture the vast majority of expected price movements, while recognising that larger movements remain possible but are expected to occur rarely. 

#### Margin Level

Margin Level measures the relationship between the trader's current Equity and their Margin Used.

$$
Margin ; Level = \frac{Equity} {Margin ; Used}
$$

Margin Level is used by Crypta's risk engine to determine whether the account has sufficient collateral to support its open positions. 

A Margin Level below 100% triggers liquidation.