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Kimia uses a cross-margin model per market: one UserAccount holds one position and the collateral that backs it. Free collateral is shared between the open position and any resting orders.

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Margin types

TypeWhen checkedDefault
Initial marginOpening or increasing a position, and on withdrawal1000 bps (10%)
Maintenance marginEvery time a margin sensor runs (liquidation check)500 bps (5%)
Reserved marginAt place_order placement (resting orders)Locks notional × initial_margin_ratio

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Formulas

notional=∣base_amount∣×priceBASE_PRECISION\text{notional} = \frac{|\text{base\_amount}| \times \text{price}}{\text{BASE\_PRECISION}} initial_req=notional×initial_margin_ratio10,000\text{initial\_req} = \frac{\text{notional} \times \text{initial\_margin\_ratio}}{10{,}000} maint_req=notional×maintenance_margin_ratio10,000\text{maint\_req} = \frac{\text{notional} \times \text{maintenance\_margin\_ratio}}{10{,}000} free_collateral=collateral−total_reserved_margin\text{free\_collateral} = \text{collateral} - \text{total\_reserved\_margin} health=free_collateral+unrealized_pnl−maint_req\text{health} = \text{free\_collateral} + \text{unrealized\_pnl} - \text{maint\_req} Liquidation triggers when health≤0\text{health} \leq 0.

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Why reserved margin?

Without reservation, an attacker could:
  1. Deposit 100 USDC.
  2. Place 10 resting limit orders, each of which individually passes the initial-margin check.
  3. Wait for adverse fills, and end up with a position whose required margin exceeds their deposit.
Reserving margin at placement ties each order to real, untouched collateral.

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Max leverage

max_leverage=10,000initial_margin_ratio\text{max\_leverage} = \frac{10{,}000}{\text{initial\_margin\_ratio}} With V1’s 1000 bps ratio, that’s 10×.

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Liquidation price

Given an open position, the liquidation price is where health hits 0: Long: liq_price=entry−collateral−maint_req∣base∣\text{liq\_price} = \text{entry} - \frac{\text{collateral} - \text{maint\_req}}{|\text{base}|} Short: liq_price=entry+collateral−maint_req∣base∣\text{liq\_price} = \text{entry} + \frac{\text{collateral} - \text{maint\_req}}{|\text{base}|} The app displays this live and recalculates whenever your collateral or position size changes.

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Worked example

Deposit:  1,000 USDC
Open:     5 SOL long @ $130 (notional = $650, 6.5× leverage)

initial_req = 650 × 0.10 = $65      ← check passes (free = $1,000)
maint_req   = 650 × 0.05 = $32.5

liq_price (long) = 130 − (1,000 − 32.5) / 5 = 130 − 193.5 = negative
                → i.e. never liquidated until funding eats collateral

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Settling funding changes collateral

Funding payments move silently in and out of UserAccount.collateral when settle_funding runs or when you trade. That means:
  • Your liquidation price drifts over time even if mark hasn’t moved.
  • Watch both mark and your collateral balance.
  • Holding a losing direction through many funding periods can trigger liquidation purely from funding, not from adverse price.