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DeepBook Margin

DeepBook Margin extends the trading capabilities of DeepBookV3 by enabling leveraged trading positions. With margin trading, users can borrow funds to increase their buying power.

Key features​

DeepBook Margin provides the following capabilities:

  • Leveraged positions: Trade with borrowed funds to increase position sizes beyond available capital
  • Risk management: Built-in liquidation mechanisms to protect lenders and maintain system solvency
  • Collateral flexibility: Support for multiple assets as collateral for isolated margin positions
  • Interest accrual: Transparent interest rate calculations for borrowed funds

Risk considerations​

Margin trading carries additional risks, including the potential for liquidation if positions move against the trader. Users should understand these risks before engaging in margin trading on DeepBookV3.

Liquidation mechanisms​

When a margin position falls below the maintenance margin requirement, the position will be liquidated to protect lenders and maintain system solvency. The liquidation engine operates on-chain through smart contracts, ensuring transparent and fair execution.

Interest rates​

Interest rates for borrowed funds are calculated transparently based on utilization rates and market conditions.

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DeepBook Margin package

The DeepBook Margin package on GitHub.