Margin Requirements

At Multitude, our team leverages its industry experience to ensure users make informed decisions and manage risk responsibly. We prioritize user education and risk management in our margin trading offerings.

To access margin lending, users must score at least 80% on a questionnaire designed to confirm their experience with leverage and remind them of the associated risks. If unsuccessful, users must wait for a specified period before retaking the test. We also provide comprehensive guidance on margin trading to further educate our users.

When setting our margin requirements, we account for the increased volatility of cryptocurrencies and adjust the requirements accordingly:

Trading in Stablecoin ("Fiat") Pairs Users trading in stablecoin pairs (eg. APPL/USD) will have access to leverage at the FINRA (Financial Industry Regulatory Authority) minimum margin requirements: an initial margin requirement of 50%, with the maintenance margin set at 25%. This means that when a trader opens a position with borrowed funds, they must have at least 50% of the total position value in their account as collateral, and they must maintain at least 25% of the position value in their account at all times.

(Note: in wake of the history of stablecoin depegs in the space (i.e. when 1 USDC ≠ 1 USA Dollar) our platform will impose price-oracle fail safes to ensure that margin requirements are adjusted or paused for new lending if deemed more appropriate. )

Trading in Crypto Pairs

To account for the increased market volatility inherent in crypto pairs trading a minimum initial margin requirement of 60% and a maintenance margin requirement of 30%. These levels provide a buffer against market fluctuations, reducing the likelihood of margin calls Moving Towards an AI-Driven User Specific Model At Multitude, we recognize that each user's experience and risk tolerance can vary significantly. To accommodate this, we are developing a user-specific model that leverages machine learning to adjust margin requirements and make recommendations based on individual trading history and performance.

This adaptive approach will allow experienced traders to access the minimum margin requirements outlined above only after completing a certain number of trades or maintaining an active trading history over a specific period. This ensures that our platform offers a tailored trading experience, promoting responsible risk management while still providing flexibility for seasoned users.

By implementing this user-specific model, we aim to strike the right balance between facilitating advanced trading strategies and ensuring that users don't take on excessive risks. Our ultimate goal is to provide a supportive and secure trading environment, empowering users to make well-informed decisions and optimize their investment strategies.