Risk Limit Tiers

Risk limit tiers define the specific constraints applied to accounts based on the total nominal value of their open positions. Each tier dictates the maximum leverage, the initial margin requirement, and the maintenance margin percentage applicable to the trader.

These tiers allow exchanges to provide high leverage to retail traders with small positions while imposing strict capital requirements on institutional-sized positions. This prevents a single large whale account from causing a cascading failure across the entire order book.

The system automatically shifts the user to a more restrictive tier as their exposure expands.