Collateral

How do users post collateral while trading in PepperDEX? The quantity of initial collateral required, i.e., initial margin, is determined by Hxro Network's risk engine (see Margining). Currently, the only asset that can be used to post collateral is USDC, although Hxro Network plans to expand collateral options to other assets.

Can Unrealized PnL be used as margin?

Yes! A trader's Unrealized PnL will automatically be used as margin to protect their existing positions. This means that positions that are highly overleveraged or at the brink of liquidation can be saved by adding more collateral in the form of Unrealized PnL. This will help traders avoid unnecessary liquidations, allowing them to retain ownership of their positions when they would be forced to sell them otherwise. We recommend that traders understand this functionality and use stop losses to limit downside risk. For more information on how Hxro Network manages this risk, see Risk Management.