Margin System

Reya margins your whole account as a portfolio, not position-by-position. Within a market, your long and short exposure nets off, and all positions draw on one shared margin balance — which is what makes cross-margining capital-efficient.

The two requirements

Both derive from a single portfolio risk number:

• Initial Margin (IM) — required to open or increase a position.

• Liquidation Margin Requirement (LMR) — the base risk number; fall below it and the account becomes liquidatable (see Liquidations & ADL).

How it's computed

Each market carries its own risk factor, and cross-market correlations are not modelled — a position in one market neither offsets nor amplifies another market's requirement. So your account requirement is simply the sum of the per-market requirements. Within a single market, your net exposure is what counts — longs net against shorts. All quantities are in rUSD (the wrapped-USDC quote / settlement collateral). The per-market parameters that drive this are published on each market's definition (see below), and the next section shows how to put them together.

Where to get the per-market parameters

Each market's risk parameters are published on its perpMarketDefinitions entry (see Markets & Assets):

• maxLeverage — the maximum leverage allowed for the market.

• liquidationMarginParameter — drives the market's liquidation margin requirement (LMR).

• initialMarginParameter — drives the market's initial margin requirement (IM).

Read these per market to size positions and set your own buffer above the liquidation requirement.

What "margin balance" means

The IM and LMR checks compare against your margin balance, which is your equity, not your raw deposited collateral. It is your collateral balance plus unrealised PnL, plus accrued funding (and any ADL / realized-PnL cashflows), all valued at the current mark price. Because unrealised PnL is included, your margin balance falls as your positions move against you — even if you never deposit or withdraw.

The V2 AccountBalance fields don't give you this figure directly. realBalance is net deposits plus realized PnL from closed positions — it excludes unrealised PnL and funding, so it overstates your margin balance while an open position is underwater (balanceDEPRECATED is raw collateral only). To size a buffer safely, reconstruct margin balance yourself as realBalance + unrealised PnL on your open positions (marked to the current mark price) + accrued funding. Treat this as an estimate for sizing your buffer. Actual trading capacity also depends on collateral valuation and pending fills; the pre-trade checks below determine whether a request is accepted.

Computing your requirement

Work it out per market, then sum across markets. For each market, using the parameters above:

• Notional — your net position size, in rUSD: notional = |net base position| × markPrice (see Mark Price).

• Initial margin (required to open or increase): IM = initialMarginParameter × notional, equivalently notional / maxLeverage.

• Liquidation requirement: LMR = liquidationMarginParameter × notional.

Across your whole account, sum the per-market requirements:

• IM = Σ (IM per market)

• LMR = Σ (LMR per market)

You become liquidatable once your account margin balance falls below LMR, and you can't open or increase a position if doing so would drop your margin below IM.

Worked example

An ETH-perp market with liquidationMarginParameter = 0.04, initialMarginParameter = 0.05, and maxLeverage = 20. A 10 ETH long at a mark price of 3,000 rUSD:

• notional = 10 × 3,000 = 30,000 rUSD

• IM = 0.05 × 30,000 = 1,500 rUSD (equivalently 30,000 / 20) — you need at least 1,500 rUSD of margin to open it.

• LMR = 0.04 × 30,000 = 1,200 rUSD — you become liquidatable if your account margin balance falls below 1,200 rUSD.

Pre-trade risk checks

Pre-trade risk is live for spot and perp orders. Reya checks margin, balances, open-interest limits and reduce-only constraints before matching. Passing these checks does not confirm settlement; use the executions channels for confirmed trades.

• Incoming creates and crossing modifies: a failed risk check returns a request error. A rejected modify leaves the existing order unchanged.

• Pending settlement: fills awaiting settlement count against available margin, open-interest capacity and spot balances. Later requests can be rejected until those fills are resolved.

• Reducing risk: an account between initial and liquidation margin may make a qualifying risk-reducing trade. Normal trading below the liquidation-margin / real-balance floor is rejected; see Liquidations & ADL.

Handling risk outcomes

Surface	Outcome	Client action
REST / WS Order Entry	ACCOUNT_BELOW_INITIAL_MARGIN_ERROR	Add collateral, reduce size or submit an eligible risk-reducing order
REST / WS Order Entry	ACCOUNT_BELOW_LIQUIDATION_MARGIN_ERROR	Restore the account's margin / real-balance floor; ordinary reducing orders do not bypass it
REST / WS Order Entry	OPEN_INTEREST_CAP_ERROR / OPEN_INTEREST_BUDGET_ERROR	Account for the market cap and pending-fill budget; do not blindly resubmit
REST / WS Order Entry	REDUCE_ONLY_CONDITION_NOT_MET_ERROR / INSUFFICIENT_BALANCE_ERROR	Correct the reducible size or available spot balance
REST / WS Order Entry	CROSSING_ORDERS_TEMPORARILY_UNAVAILABLE_ERROR	Retry the crossing request after a short delay. Existing resting orders remain unchanged and can still be cancelled. The same code is returned during a matching pause
WS Info orderChanges	RISK_CANCELLED	Remove the cancelled maker from local order state; reassess capacity before replacing it
WS Info orderChanges	RISK_REJECTED	A protective fire was refused before a child existed; both armed legs are cancelled and protection must be re-armed deliberately

For cancellation events, cancelReasonMessage is a fixed explanation per reason, not the individual failed risk check. Do not parse it to choose a recovery path. Interactive request errors may include more specific diagnostic messages; use the error code for classification.

Continue reconciling executions and trade busts. Pre-trade checks reduce settlement failures; they do not make a matching-engine acknowledgement final.

What this means for integrators

• Cross-margin within an account, isolated between accounts. Your account is margined as one portfolio — within a market, long and short exposure nets off; separate accounts never share margin (see Accounts & Subaccounts).

• Keep a buffer above the liquidation requirement (LMR). Liquidation triggers on margin, and the liquidation waterfall acts quickly once you cross it — keepers catch accounts shortly after they breach LMR.