Risk and Liquidation

Margin Modes

Cross Margin

All positions share a single margin pool. Unrealized profit from one position can offset losses in another. Available for standard crypto perps (BTC, ETH, SOL, etc.).

Isolated Margin

Each position has its own margin. Limits risk to the margin allocated to that specific position. Required for all HIP-3 assets (xyz:, flx:, vntl:, etc.).

Leverage

Maximum leverage varies by asset:

Asset	Max Leverage	Margin Mode
BTC	40x	Cross or Isolated
ETH	25x	Cross or Isolated
SOL	20x	Cross or Isolated
xyz:SILVER	25x	Isolated only
xyz:GOLD	25x	Isolated only

• Higher leverage = higher potential return but lower distance to liquidation

• Large positions may have tiered leverage limits (e.g., BTC positions above $150M notional are limited to 20x)

Adjusting Leverage on Open Positions

Action	Cross Margin	Isolated Margin
Increase leverage	Supported	Supported
Decrease leverage	Not supported	Add margin to effectively reduce leverage
Switch margin mode	Must close position first	Must close position first

You cannot hold the same asset in both cross and isolated mode simultaneously. Different assets can use different margin modes (e.g., BTC in cross, SOL in isolated).

Liquidation

When your margin falls below the maintenance margin requirement, your position will be liquidated.

Maintenance margin rate = (1 / max leverage) / 2

Max Leverage	Maintenance Margin
40x	1.25%
25x	2.00%
20x	2.50%
10x	5.00%
3x	16.67%

Liquidation price is shown on every open position in the Positions panel.

Partial liquidation

• For positions > $100K, only 20% is liquidated initially.

• You have a 30-second window to add margin before the rest is liquidated.

Full liquidation

• If margin is still insufficient after partial liquidation, the entire position is closed.

Backstop liquidation

• If account equity falls below 2/3 of maintenance margin and the order book cannot absorb the liquidation, remaining margin is not returned.

Risk Management Tips

• Always set a Stop Loss, especially with leverage above 5x

• Start with low leverage: 2-5x while learning the platform

• Monitor funding rates: Hyperliquid's funding rate cap (4%/hour) is much higher than CEXs. Holding positions through extreme funding can cause significant losses

• Don't use your full balance. Leep a margin buffer for volatility

• Use Isolated Margin for high-risk trades. This limits maximum loss to the margin you allocate

• Be cautious with RWA assets on weekends. Markets (stocks, indices) may have reduced liquidity when traditional markets are closed, increasing manipulation risk