Isolated Margin & Leverage
VortexPerp uses an Isolated Margin system to keep your funds safe while offering powerful leverage.
What is Isolated Margin?
Isolated margin means that each individual trade is strictly sandboxed. The only funds at risk are the exact SOL collateral you put into that specific position.
For example, if you have 100 SOL in your wallet, and you open a trade with 1 SOL as margin, the absolute worst-case scenario is losing that 1 SOL. The other 99 SOL in your wallet are 100% safe. The protocol can never reach into your wallet to cover a bad trade.
Using Leverage
Leverage allows you to multiply your buying power, acting as a multiplier on your margin.
If you have 1 SOL of margin and use 10x leverage, your position size becomes 10 SOL.
- If SOL goes up 5%, your 10 SOL position gains 0.5 SOL in value.
- Since you only put in 1 SOL, that 0.5 SOL gain represents a 50% return on investment (ROI)!
- Warning: Leverage works both ways. If SOL drops 5%, you lose 50% of your margin.