Trading

Margin & leverage

Margin is the USDG collateral backing your positions. Leverage multiplies your exposure relative to that collateral — amplifying both gains and losses.

USDG cross-margin#

HoodPerp uses cross-margin: all positions draw from one shared USDG balance. Your account's health depends on the aggregate, not each position in isolation.

Leverage & buying power#

Each market has a maximum leverage set by its minimum initial-margin fraction on Lighter. Your buying power for a market is:

Raising leverage increases position size for the same collateral, but also raises your liquidation price closer to the current mark.

Liquidation#

If losses erode your margin below the maintenance requirement, the position is liquidated to protect the venue. Monitor your liquidation price and keep a margin buffer — volatile assets can gap through your level.