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

# Margin Requirements for Everstrike Derivatives Contracts

> Cross Margin is the default on Everstrike. Learn initial and maintenance margin formulas for perpetual futures and long and short perpetual options.

All contracts on Everstrike are USD-margined and settled in evUSD. Cross Margin is the default mode — your positions share a single margin pool, and the system evaluates your account-wide collateral. You can optionally switch individual positions to Isolated Margin, where each position carries its own dedicated margin. If your margin falls below the minimum maintenance requirement, the position becomes subject to [liquidation](/trading/liquidation).

## Perpetual Futures

| Property                | Formula                                                     |
| ----------------------- | ----------------------------------------------------------- |
| Min. Initial Margin     | `0.01 × Position Size + Abs(Funding Rate) × Position Size`  |
| Min. Maintenance Margin | `0.005 × Position Size + Abs(Funding Rate) × Position Size` |

## Perpetual Options — Long

| Property                            | Formula                                                    |
| ----------------------------------- | ---------------------------------------------------------- |
| Min. Initial Margin (Long Call)     | `1.00 × Position Size + Abs(Funding Rate) × Position Size` |
| Min. Initial Margin (Long Put)      | `1.00 × Position Size + Abs(Funding Rate) × Position Size` |
| Min. Maintenance Margin (Long Call) | `0.50 × Position Size + Abs(Funding Rate) × Position Size` |
| Min. Maintenance Margin (Long Put)  | `0.50 × Position Size + Abs(Funding Rate) × Position Size` |

## Perpetual Options — Short

| Property                             | Formula                                                                                                                                                                               |
| ------------------------------------ | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- |
| Min. Initial Margin (Short Call)     | `Max(0.06 × Underlier Index Price − OTM Amount / Underlier Index Price, 0.04 × Underlier Index Price) + Mark Price + Abs(Funding Rate) × Position Size`                               |
| Min. Initial Margin (Short Put)      | `Max(Max(0.06 × Underlier Index Price − OTM Amount / Underlier Index Price, 0.04 × Underlier Index Price) + Mark Price, Min. Maintenance Margin) + Abs(Funding Rate) × Position Size` |
| Min. Maintenance Margin (Short Call) | `0.02 × Underlier Index Price + Mark Price + Abs(Funding Rate) × Position Size`                                                                                                       |
| Min. Maintenance Margin (Short Put)  | `Max(0.02 × Underlier Index Price, 0.02 × Mark Price) + Mark Price + Abs(Funding Rate) × Position Size`                                                                               |

<Note>
  `Abs(Funding Rate)` is capped at `0.3%` for perpetual futures and `10%` for perpetual options when used in the margin formulas above.
</Note>

## Definitions

* **Abs(Funding Rate)** — the absolute value of the current [Funding Rate](/trading/funding). Always non-negative.
* **OTM Amount** — the out-of-the-money amount of the options contract. A contract that is $1,000 out-of-the-money has an OTM Amount of $1,000. An in-the-money or at-the-money contract has an OTM Amount of \$0.
* **Underlier Index Price** — the [Index Price](/trading/index-price) of the underlying asset of the derivatives contract.
* **Mark Price** — the manipulation-resistant reference price used for margin and liquidation calculations. See [Mark Price](/trading/mark-price).

<Info>
  Portfolio Margin is not currently supported on Everstrike. All accounts use either Cross Margin or Isolated Margin.
</Info>