> For the complete documentation index, see [llms.txt](https://docs.sigsig.xyz/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.sigsig.xyz/core-concepts/margin-leverage-and-pnl.md). # Margin, Leverage & PnL Notional, leverage, margin, liquidation and PnL explained. ## Notional value The notional value is the full size of your position in USDC: `Notional = position size × mark price` ## Leverage Leverage lets you open a position larger than your margin. With 10x leverage, 100 USDC of margin controls a 1,000 USDC position. Leverage multiplies gains **and** losses. The maximum leverage differs per market and is shown next to each market. ## Initial margin The margin you need to open a position: `Initial margin = notional ÷ leverage` ## Maintenance margin The minimum margin needed to keep a position open. It is lower than the initial margin and can rise for very large positions. ## Margin ratio and risk rate Your **margin ratio** compares your account value with the margin your positions require. The **risk rate** bar in the account box shows how close you are to liquidation — the further it moves to the right, the higher your risk. ## Liquidation If your margin falls below the maintenance margin, your position is liquidated to prevent further losses. The **estimated liquidation price** is shown in the order terminal before you trade and next to each open position. Keep a buffer, reduce leverage or add margin to stay safe. ## PnL (profit and loss) * **Unrealized PnL** — the profit or loss of an open position, based on the mark price. * **Realized PnL** — locked in once you close (or partly close) a position, after fees and funding. ## PnL settlement Realized profits and losses are settled into your balance. Settlement happens automatically when needed (for example before a withdrawal) and can also be triggered manually. --- # Agent Instructions This documentation is published with GitBook. GitBook is the documentation platform designed so that both humans and AI agents can read, navigate, and reason over technical content effectively. Learn more at gitbook.com. ## Querying This Documentation If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question. Perform an HTTP GET request on the current page URL with the `ask` query parameter, and the optional `goal` query parameter: ``` GET https://docs.sigsig.xyz/core-concepts/margin-leverage-and-pnl.md?ask=&goal= ``` `ask` is the immediate question: it should be specific, self-contained, and written in natural language. `goal` is optional and describes the broader end goal you are ultimately trying to accomplish on behalf of the user. GitBook uses it to tailor the answer towards what is most useful for that goal. The response will contain a direct answer to the question and relevant excerpts and sources from the documentation. Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.