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This page is a reference for all the key formulas used on Orderly. Each section explains what a value means in plain language, then gives the exact formula. If you are building a trading bot or just want to double-check the numbers you see in the UI, this is the page to bookmark.

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Margin and Balance Formulas

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Futures Margin Ratio

Your margin ratio tells you how healthy your account is. It compares how much collateral you have against how large your open positions are. A higher ratio means your account is in better shape. Current margin ratio = total_collateral_value / sum(abs(position_notional_i))

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Total Collateral

This is the total value of everything backing your positions. It includes your USDC balance plus any unrealized profit or loss you have not yet settled. It does not factor in pending orders. Total collateral of the user (doesn’t account for any pending orders, includes unsettled PnL) = total_balance + upnl + pending_short_USDC

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Free Collateral

Free collateral is the portion of your collateral that is still available for opening new trades. Unlike total collateral, it does account for margin already reserved by your pending orders. Available collateral/balance to trade (accounts for any pending orders, includes unsettled PnL) = collateral + upnl - total_initial_margin_with_orders - pending_short_USDC

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Portfolio Value

This is the total dollar value of everything in your account, including the notional value of your positions. Total portfolio value including position notionals = USDC Balance + (non USDC assets) * mid_price + unsettled pnl

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Withdrawable Balance

This is how much you can actually withdraw from your account right now. It is more conservative than free collateral because it excludes any unrealized profits (you can only withdraw profits after settling PnL). Collateral available to withdraw (excludes unsettled PnL) = total_balance - total_initial_margin_with_orders - positive_upnl Here are two examples to show the difference between free collateral and withdrawable balance: Example 1 (unrealized loss): Your total_balance = 100 USDC, unsettled PnL = -40 USDC, so total_collateral is 60 USDC. You have a position using 20 USDC of maintenance margin. In this case, free_collateral or withdrawable_balance = 60 - 20 = 40 USDC. Example 2 (unrealized profit): Your total_balance = 100 USDC, unsettled PnL = +40 USDC, so total_collateral is 140 USDC. But for withdrawal purposes, only 100 USDC counts. With 20 USDC of maintenance margin, free_collateral = 140 - 20 = 120 USDC, but withdrawable_balance = 100 - 20 = 80 USDC.
Withdrawable balance/collateral does not equal to total or free collateral.

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Initial Margin Ratio

The Initial Margin Ratio (IMR) determines how much margin you need to open or maintain a position. It scales up for larger positions, meaning you need proportionally more margin as your position grows. This prevents traders from taking on dangerously large positions with minimal collateral. 
IMR i = Max(1 / Max Account Leverage, Base IMR i, IMR Factor i * Abs(Position Notional i)^(4/5))
initial_margin_i = abs (position_notional_i * IMR_i)
weighted_initial_margin_ratio_i =  abs (position_notional_i / total_notional ) * IMR_i
initial_margin_ratio = sum (weighted_initial_margin_ratio_i)

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Maintenance Margin Ratio

The Maintenance Margin Ratio (MMR) is the minimum margin ratio your account must hold to avoid liquidation. It is always lower than the IMR, giving you a buffer between “you can’t open new positions” and “your positions get liquidated.” 
MMR i = Max(Base MMR i, (Base MMR i / Base IMR i) * IMR Factor i * Abs(Position Notional i)^(4/5))
maintenance_margin_i= abs (position_notional_i * MMR_i)
weighted_maintenance_margin_ratio_i = abs (position_notional_i / total_notional ) * MMR_i
maintenance_margin_ratio = sum (weighted_maintenance_margin_ratio_i)

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Positions PnL

These formulas let you calculate how much you are making or losing on your open positions, and at what price your position would get liquidated. Unrealized PnL tells you the current profit or loss on an open position, based on the current mark price compared to your entry price. Unrealized PnL = position_qty * (mark_price - avg_open) Liquidation Price is the price at which your account would fall below the maintenance margin and get liquidated. Knowing this number helps you manage risk. 
Qi = position_qty

liquidation_price  = max[( Mark Price + ( total_collateral_value - total_notional * MMR ) / ( |Qi| * MMRi - Qi )), 0]
Notional is the total USDC value of a single position. It is simply the mark price multiplied by the number of contracts you hold. Notional = position_notional_i = abs(mark_price_i * position_qty_i) Fut Notional or Total Notional is the sum of the notional values across all your positions. Fut Notional or Total Notional = sum (abs (position_notional_i))
Unsettled PnL is retrieved from the API and cannot be calculated

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Order placement formulas

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Max Order Quantity

This formula calculates the largest order you can place for a given market, based on your available collateral and the margin requirements. The system also checks whether you already have enough margin or whether iterative calculation is needed for very large orders. 
newOrderSize  = (total_collateral_value - others_IM) * min(1/Base_IMR_i,maxLeverage_account) / markPrice

IMR i = Max(1 / Max Account Leverage, Base_IMR_i, IMR Factor i * Abs(Position Notional i)^(4/5))

MMR i = Max(Base MMR i, (Base MMR i / Base IMR i) * IMR Factor i * Abs(Position Notional i)^(4/5))

aftertrade_IMR.i → Max(1 / Max Account Leverage, Base_IMR_i, IMR Factor i * Abs(After Trade Position Notional i)^(4/5))
The full logic, including edge cases when your collateral is already fully used, works as follows: 
If total_collateral_value < total_initial_margin_with_orders
    if (side == buy && position_qty >=0 ) or (side == sell && position_qty < 0)
        return 0
    else
        if side == buy
            return max( abs(position_qty) - pending_long_qty, 0 )
        else
            return max( position_qty + pending_short_qty, 0 )
else
    newOrderSize = (total_collateral_value - others_IM) * min(1/Base_IMR_i,maxLeverage_account) / markPrice
    calculate afterTradeIM
    newTotalIM = othersIM + afterTradeIM
    if side = buy
        others = -holding - pendingLongQty
    else
        others = holding + pendingShortQty

    if totalCollatValue >= newTotalIM
        return max(0, newOrderSize * 99.5% + others)
    else
        newOrderSize_iter = ITERATE()
        return max(0, newOrderSize_iter * 99.5% + others)

with :
total_collateral_value = total_balance + upnl + pending_short_USDC
total_initial_margin_with_orders =  sum (position_notional_with_orders_i * IMR_i (with_orders))
position_qty_with_orders_i = max[abs(position_qty + sum_position_qty_buy_orders),abs(pos_qty + sum_position_qty_sell_orders)]
position_notional_with_orders_i = abs(mark_price_i * position_qty_with_orders_i)
others_IM = sum[i#j)(initial_margin_with_orders_i) (where j represents the pair i on which the order is being placed)

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Liquidation Price

This estimates your liquidation price after a new order would be filled. It is useful for previewing the risk of a trade before you submit it. 
Qi = position_qty + order_qty

liquidation_price  = max( Mark Price + ( total_collateral_value - total_notional_with_order * MMR_with_order ) / ( |Qi| * MMR_with_order_i - Qi )), 0)