Bullet
  • Introduction
  • Bullet Network
    • Design Goals
    • Architecture
      • Sequencer
      • Full & Light Nodes
      • Zero-knowledge Virtual Machine
      • State Database
      • Data Availability
      • Bridge
      • Oracle
      • Gas & Paymaster
      • Wallet Abstraction
    • Network Specifications
    • Build on Bullet
      • REST/WS APIs
      • BulletSVM
    • Audits
  • BulletX (Exchange)
    • Products
    • Architecture
      • Orderbook
      • Unified Margin Engine
      • Lending Engine
      • Liquidation
      • Insurance Fund & ADL
      • Funding
      • Price Indices
      • Order Types & TP/SL
      • Fees
      • Vaults
    • Contract Specifications
  • Tokenomics
    • Bullet Token
    • ZEX Token Migration
  • FAQs
    • Frequently Asked Questions
  • Campaigns
    • Testnet Trading Cup
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  • Key Capabilities:
  • Margin Requirements and Risk Management:
  • Profit & Loss (PNL):
  1. BulletX (Exchange)
  2. Architecture

Unified Margin Engine

Bullet delivers unparalleled capital efficiency and breadth of collateral options through its sophisticated margin and risk system, on par with leading centralized exchanges.

Our platform features a sophisticated Unified Margin Engine, designed to provide exceptional capital efficiency and robust risk management across all your trading activities. This engine consolidates your margin across spot, perpetuals, and borrow-lend markets within a single account.

Key Capabilities:

  • Cross Margin: Our unified system allows you to leverage the total eligible collateral in your account to support positions across all trading products. This maximizes capital utilization compared to segregated margin systems.

  • Multi-Asset Collateral: We support margining with a range of blue-chip assets (e.g., BTC, ETH, SOL), each with its own margin weighting. This enables you to utilize your existing holdings as collateral – for instance, trading SOL-PERP directly with your SOL, enhancing capital efficiency for users with specific asset preferences.

  • Scaling Leverage: To balance capital efficiency with risk control, our leverage scales based on the notional size of your positions. Higher leverage is available for smaller positions, while margin requirements increase proportionally for larger positions, mitigating the risks associated with highly leveraged "whale" accounts.

  • Open Interest Caps: We implement platform-wide open interest caps on all trading pairs to limit the total aggregate size of open positions. This crucial measure helps prevent systemic risk in our permissionless environment.

  • Isolated Margin (Coming Soon): For granular risk management, we will soon offer isolated margin, allowing you to allocate specific collateral to individual positions and limit potential losses to that amount.

Margin Requirements and Risk Management:

Understanding margin requirements is crucial for managing your risk effectively:

  • Initial Margin Requirement (IMR): This is the minimum collateral needed to open a new position, expressed as a percentage of the notional value. The IMR increases with larger position sizes due to our scaling leverage model. If your margin ratio falls below the IMR, you will be unable to open new positions, and existing orders may be cancelled.

  • Maintenance Margin Requirement (MMR): This is the minimum collateral you must maintain to keep your positions open (50% of the IMR). If your margin ratio drops below the MMR, your positions will be subject to liquidation. For detailed information, please refer to Liquidation.

Profit & Loss (PNL):

  • PNL Settlement (USDC Denominated): Profit and loss for perpetual contracts is settled in USDC. Negative UPNL is first deducted from your USDC balance. If insufficient USDC is available, a USDC loan will be taken out against your non-USDC collateral. Persistent negative PNL can lead to the liquidation of your spot collateral to cover these debts. To ensure smooth settlements, the platform maintains a dedicated USDC PNL pool.

  • Unrealized PNL (UPNL): Currently, UPNL cannot be withdrawn. While positive UPNL increases your available margin, it is only realized upon closing the associated positions.

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Last updated 16 days ago