> For the complete documentation index, see [llms.txt](https://docs.nexus.xyz/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.nexus.xyz/exchange/trading/perpetuals/margining.md).
# Margining
Margining on the Nexus Exchange will be executed natively inside NexusCore.
### **Initial Margin Requirements**
When opening a leveraged position, traders must post initial margin, defined by the maximum leverage allowed for a given market.
Initial margin ensures sufficient collateral at entry and will be verified atomically by NexusCore before an order is accepted into the orderbook. The initial margin calculation will follow the formula:
$$
initial\_margin=position\_size×mark\_priceleverageinitial\_margin=leverageposition\_size×mark\_price
$$
Because margin validation will run inside NexusCore, traders will benefit from:
* **Deterministic enforcement** (no race conditions from asynchronous contract calls)
* **Sub-second execution** aligned with block times
* **Atomic settlement** with order placement
This will ensure both speed and safety at the protocol level.
### **Maintenance Margin**
Maintenance margin is the minimum margin that must be preserved to keep a position open. Falling below this threshold makes a position eligible for liquidation. Each market will have its own maintenance margin fraction, calculated as:
$$maintenance\_margin=1max\_leverage×2maintenance\_margin=max\_leverage×21$$
### **Liquidation Process**
Positions will be liquidated when the mark price from the oracle causes equity to fall below maintenance margin.
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