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Clarify Documentation for Maximum Position Sizes #257

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BeyondLaniakea opened this issue May 14, 2021 · 0 comments
Open

Clarify Documentation for Maximum Position Sizes #257

BeyondLaniakea opened this issue May 14, 2021 · 0 comments

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@BeyondLaniakea
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I see here https://help.dydx.exchange/en/articles/5232637-maximum-position-sizes that the initial margin fraction will increase for all markets depending on the market's incrementalInitialMarginFraction, incrementalPositionSize, baselinePositionSize, and maximumPositionSize. What I wonder though is will the maintenance fraction increase with the position size as well? I'm concerned that someone could quickly use up all their buying power with a large position then get liquidated despite having a fairly low leverage where the asset price is still very distant from the typical liquidation price. The docs should explicitly call out whether or not the maintenance fraction is going to increase alongside the initial margin fraction, and should clarify that being over 100% margin use will not result in liquidation.

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