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This page covers the core concepts you need to understand before trading perpetual futures on Orderly: how much your positions are worth (notional value), how much collateral you need (margin), and how profits and losses are tracked (PnL).

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Notional Value

The notional value of a position is simply how much that position is worth in USDC terms. For example, if you hold 0.5 BTC and the current Mark Price is 60,000 USDC, your notional value is 30,000 USDC. 
Notional Value = Position Qty * Mark Price

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Account Margin Ratio

Your Account Margin Ratio is the single most important number for understanding your account’s health. It tells you the ratio between your total collateral (your USDC balance plus any unrealized profit or loss) and the total size of your open positions. For an account having positions on multiple contracts: 
Account Margin Ratio = Total Collateral Value / Sum(Abs(Position Notional i))
A higher margin ratio means lower risk. When you have no open positions, the default margin ratio is 1000%. As you take on larger positions or your collateral decreases, this ratio drops. If it drops too low, you face liquidation.

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Initial Margin Ratio

The Initial Margin Ratio (IMR) is the minimum margin ratio your account needs in order to open new positions or make withdrawals. Think of it as the entry requirement — if your margin ratio is below the IMR, the system will not let you take on more risk. Each perpetual futures market has its own Base IMR, and the maximum leverage for that market is simply 1 divided by the Base IMR. For example, a Base IMR of 1% means up to 100x leverage. 
IMR i = Max(1 / Max Account Leverage, Base IMR i, IMR Factor i * Abs(Position Notional i)^(4/5))
IMR Factors are coefficients that kick in for large positions. The bigger your position, the more margin you need relative to its size. This means your effective leverage decreases as your position grows, which protects both you and the platform from oversized risk.

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Maintenance Margin Ratio

The Maintenance Margin Ratio (MMR) is the absolute minimum margin ratio your account must maintain. If your Account Margin Ratio drops below the MMR, your positions will be liquidated. The MMR is always lower than the IMR, which creates a buffer zone. You will first lose the ability to open new positions (when you drop below IMR) before you face liquidation (when you drop below MMR). 
MMR i = Max(Base MMR i, Base MMR i / Base IMR i * IMR Factor i * Abs(Position Notional i)^(4/5))
We will gradually decrease Base IMR and Base MMR and increase maximum leverage for major markets after launch.
The table below shows the margin parameters for every perpetual market on Orderly. The “Base IMR” column also shows the maximum leverage in parentheses.
Perp MarketBase IMR (max leverage)Base MMRIMR Factor
BTC-PERP1% (100x)0.6%0.0000000910
ETH-PERP1% (100x)0.6%0.0000001724
ARB-PERP10% (10x)5%0.0000021481
WOO-PERP10% (10x)5%0.0000077523
LINK-PERP10% (10x)5%0.0000018182
OP-PERP10% (10x)5%0.0000021481
SOL-PERP1% (100x)0.6%0.0000010667
SUI-PERP5% (20x)2.5%0.0000028100
TIA-PERP10% (10x)5%0.0000116025
INJ-PERP10% (10x)5%0.0000021481
AVAX-PERP5% (20x)2.5%0.0000022222
JUP-PERP10% (10x)5%0.0000077350
APT-PERP10% (10x)5%0.0000020800
WLD-PERP10% (10x)5%0.0000073100
SEI-PERP10% (10x)5%0.0000018182
DYM-PERP10% (10x)5%0.0000103131
ETHFI-PERP10% (10x)5%0.0000071400
ENA-PERP10% (10x)5%0.0000064014
WIF-PERP10% (10x)5%0.0000097705
MERL-PERP10% (10x)5%0.0000092820
ONDO-PERP10% (10x)5%0.0000058013
AR-PERP10% (10x)5%0.0000077523
1000PEPE-PERP5% (20x)2.5%0.0000033766
1000BONK-PERP10% (10x)5%0.0000071400
TON-PERP10% (10x)2.5%0.0000074256
STG-PERP10% (10x)5%0.0000073100
ZRO-PERP10% (10x)5%0.0000092820
AAVE-PERP10% (10x)5%0.0000046867
CRV-PERP10% (10x)5%0.0000084000
LDO-PERP10% (10x)5%0.0000021481
TRX-PERP5% (20x)2.5%0.0000028100
ORDER-PERP10% (10x)5%0.0000092820
POL-PERP5% (20x)2.5%0.0000019314
TAO-PERP10% (10x)5%0.0000084382
1000SHIB-PERP5% (20x)2.5%0.0000022222
GOAT-PERP10% (10x)5%0.0000100891
1000000MOG-PERP10% (10x)5%0.0000088400
SPX-PERP10% (10x)5%0.0000092820
PENDLE-PERP10% (10x)5%0.0000074256
HYPE-PERP5% (20x)2.5%0.0000028100
AIXBT-PERP10% (10x)5%0.0000084382
PENGU-PERP10% (10x)5%0.0000092820
FARTCOIN-PERP10% (10x)5%0.0000075320
ZEN-PERP10% (10x)5%0.0000072298
BIO-PERP10% (10x)5%0.0000075320
RAY-PERP10% (10x)5%0.0000077350
ADA-PERP5% (20x)2.5%0.0000022222
S-PERP10% (10x)5%0.0000024700
TRUMP-PERP10% (10x)6%0.0000071400
FET-PERP10% (10x)5%0.0000021481
BERA-PERP10% (10x)6%0.0000073100
UXLINK-PERP10% (10x)6%0.0000084382
IP-PERP20% (5x)10%0.0000073100
CAKE-PERP10% (10x)5%0.0000035767
LTC-PERP5% (20x)2.5%0.0000022222
HBAR-PERP10% (10x)5%0.0000077523
PAXG-PER10% (10x)5%0.0000033766
FET-PERP10% (10x)5%0.0000021481
USELESS-PERP20% (5x)10%0.0000084382
MNT-PERP10% (10x)5%0.0000020800
H-PERP10% (10x)6%0.0000074256
CRO-PERP10% (10x)5%0.0000020800
XLM-PERP10% (10x)5%0.0000028100
PUMP-PERP20% (5x)10%0.0000020800
OKB-PERP10% (10x)5%0.0000020000
UNI-PERP10% (10x)5%0.0000020000
DOT-PERP10% (10x)5%0.0000020000
BCH-PERP10% (10x)5%0.0000018182
WLFI-PERP10% (10x)5%0.0000020000
LINEA-PERP20% (5x)10%0.0000073100
MYX-PERP10% (10x)5%0.0000033766
SKY-PERP10% (10x)5%0.0000024700
ZORA-PERP10% (10x)5%0.0000097705
STBL-PERP10% (10x)5%0.0000092820
ASTER-PERP10% (10x)5%0.0000020800
XPL-PERP20% (5x)10%0.0000058013
ZEC-PERP10% (10x)5%0.0000022222
SNX-PERP10% (10x)5%0.0000033766
DASH-PERP10% (10x)5%0.0000033766
SPX500-PERP5% (20x)2.5%0.0000000001
NAS100-PERP5% (20x)2.5%0.0000000001
XMR-PERP10% (10x)5%0.0000022222
MORPHO-PERP10% (10x)5%0.0000074256
ICP-PERP10% (10x)5%0.0000020800
FIL-PERP10% (10x)5%0.0000020800
MON-PERP10% (10x)5%0.0000074256
LIT-PERP10% (10x)5%0.0000021481
AXS-PERP10% (10x)5%0.0000092820
XAU-PERP5% (20x)2.5%0.0000000001
XAG-PERP5% (20x)2.5%0.0000000001
SKR-PERP10% (10x)5%0.0000092820
BIRB-PERP10% (10x)5%0.0000123760
SENT-PERP10% (10x)5%0.0000331135
ZAMA-PERP10% (10x)5%0.0000785562
GOOGL-PERP5% (20x)2.5%0.0000000001
TSLA-PERP5% (20x)2.5%0.0000000001
NVDA-PERP5% (20x)2.5%0.0000000001

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PnL (Profit and Loss)

PnL stands for Profit and Loss. There are two types: Unrealized PnL is the paper profit or loss on a position you still have open. It changes constantly as the market moves. If BTC is at 62,000 and you bought at 60,000, your unrealized PnL is positive. 
Unrealized PnL(Perp Market i) = Position Qty * (Mark Price - Position Average Entry Price)
Realized PnL is your actual profit or loss after you close (or reduce) a position. Once a position is closed, the PnL is locked in. 
Realized PnL(Perp Market i) = Position Qty * (Average Price - Position Average Entry Price)

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PnL settlement

PnL settlement is the process of moving your profits or losses from your perpetual positions into your USDC balance. This is important because you cannot withdraw unrealized or unsettled profits — you need to settle first. A few key points to understand:
  • Settlement does not affect your margin ratio or open positions. It is purely an accounting step.
  • Settled vs. unsettled PnL is different from realized vs. unrealized PnL. PnL becomes “realized” when you close or reduce a position. But that realized PnL stays “unsettled” until you explicitly trigger a settlement. Only after settlement does it move into your withdrawable balance.
  • Settled PnL can be used for trading or withdrawn, but withdrawing reduces your margin ratio.

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How the settlement process works

When your account (Account X) triggers a PnL settlement, Orderly finds the accounts with the largest unsettled PnL on the opposite side. Starting with the largest, each account’s unsettled PnL is offset against yours until your PnL is fully settled. Example: Account X has +20,000 USDC of unsettled PnL and a balance of 100 USDC. The two largest opposing accounts are Account A (-15,000 USDC) and Account B (-5,000 USDC):
  • First, Account X settles against Account A. Account X’s balance goes up by 15,000 USDC (now 15,100 USDC), and Account A’s balance goes down by 15,000 USDC. Account X still has 5,000 USDC of unsettled PnL remaining.
  • Then, Account X settles against Account B. Account X’s balance goes up by 5,000 USDC (now 20,100 USDC), and Account B’s balance goes down by 5,000 USDC. Account X now has 0 unsettled PnL. Settlement is complete.
Settling PnL will NOT change the user’s balance as displayed user balance already includes unsettled PnL in the calculation.Withdrawable balance will change after settling PnL as it doesn’t include unsettled profits in the calculation.All settling PnL does is move profits into user’s account so user is able to withdraw.

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Max notional amount

Orderly sets a cap on how large your position can be in any single perpetual market. This is a risk management measure. These limits will be increased and/or removed after Beta launch.
Perp MarketMax Notional (USDC)
BTC5,000,000
ETH5,000,000
Alts2,000,000