> ## Documentation Index
> Fetch the complete documentation index at: https://docs.kimia.live/llms.txt
> Use this file to discover all available pages before exploring further.

# Collateral

> What you post, where it lives, and how margin is checked.

## What counts as collateral

<div style={{ display: 'flex', alignItems: 'center', gap: '12px', margin: '12px 0' }}>
  <img src="https://mintcdn.com/kimia/R-0mb9LchgqcL7Y5/logo/usdc.png?fit=max&auto=format&n=R-0mb9LchgqcL7Y5&q=85&s=2daafafc80c9be99e6028d9b535e321b" alt="USDC" style={{ height: '48px' }} width="181" height="181" data-path="logo/usdc.png" />

  <div><strong>V1: USDC only.</strong> A single 6-decimal SPL token.</div>
</div>

Multi-collateral margining is on the V2 roadmap. The engine already supports
per-market collateral mints, we just haven't shipped non-USDC markets yet.

## Where your collateral lives

Deposited USDC goes to `market.collateral_vault`, a token account owned by
the market PDA. It is **never rehypothecated**; the vault only transfers out
on:

* `withdraw_collateral` (authority only)
* `place_order` matching (transfers fees to `fee_vault`)
* `liquidate` (transfers fee split + bad-debt cover)

Your balance on the market is tracked in `UserAccount.collateral`. The on-chain
token balance in the vault equals the sum of all user collateral plus any
outstanding fees not yet swept.

## Deposits

```ts theme={null}
getDepositCollateralInstruction({
  signer: wallet,             // or delegate
  userAccount,                 // PDA ["user", authority]
  market,
  userTokenAccount,
  collateralVault: market.collateralVault,
  amount: 1_000_000_000n,      // 1,000 USDC (6-decimal)
});
```

Any signer listed on `user_account.delegate` can deposit, useful for keeper
bots that top up accounts automatically.

## Withdrawals

```ts theme={null}
getWithdrawCollateralInstruction({
  authority: wallet,           // authority ONLY, delegates cannot withdraw
  userAccount,
  market,
  collateralVault,
  amount: ...,
});
```

Post-withdraw, the instruction re-runs the **initial margin check**, not
maintenance. This is stricter than the liquidation threshold and prevents
`deposit → open max position → withdraw` games.

## Reserved margin

Resting orders lock margin at placement, not fill. Your accessible collateral
is:

```
free_collateral = collateral − total_reserved_margin
```

Position health uses `free_collateral + unrealized_pnl`, not raw `collateral`.
This is deliberate, without it, spamming a hundred limit orders could all
*simultaneously* satisfy their individual margin checks but share the same
USDC.

## Precision

| Field               | Decimals | Example                             |
| ------------------- | -------- | ----------------------------------- |
| `collateral` (USDC) | 6        | 1,000.000000 USDC = `1_000_000_000` |
| `base_amount` (SOL) | 9        | 1.5 SOL = `1_500_000_000`           |
| `price`             | 6        | \$130.00 = `130_000_000`            |
| Margin ratios       | BPS      | 10% = `1000`; denominator `10_000`  |

All conversions are handled in `perps-math::safe_math`.

## Delegate trading

You can set a delegate via `set_delegate(delegate: Pubkey)`:

* Delegate **can**: `deposit_collateral`, `place_order`, `cancel_order`,
  `cancel_all_orders`.
* Delegate **cannot**: `withdraw_collateral`, `set_delegate`, `liquidate`
  (except against others, liquidation doesn't require delegation), delete the
  user account.

This is how the [delta-vault](/programs/delta-vault) manages its perp
position: the vault PDA is the delegate for its own `UserAccount` inside
`kimia-perp`.