> For the complete documentation index, see [llms.txt](https://docs.force.xyz/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.force.xyz/risk-and-margining.md). # Risk and Margining Force inherits its margining, liquidation and auto-deleveraging mechanics from Hyperliquid. This page covers the venue-specific parts; the full mechanics are in the [Hyperliquid documentation](https://hyperliquid.gitbook.io/hyperliquid-docs). ## Margin modes Both markets support **isolated** and **cross** margin. * **Isolated** confines a position's collateral to that position. A liquidation there cannot reach the rest of the account. * **Cross** shares collateral across positions, which is more capital-efficient and means a loss in one position draws on the equity supporting the others. ## Leverage | Market | Max leverage | | ------------ | ------------ | | FORCE-US10Y | 20x | | FORCE-MORT30 | 10x | Leverage may be set to any integer up to the maximum. Initial margin is position size times mark price divided by your chosen leverage. Maintenance margin is half the initial margin at maximum leverage. The two differ because the underlying rates do. The mortgage rate is the more volatile of the two in absolute terms, since it carries both the Treasury move and the mortgage spread move. ## Liquidation and auto-deleveraging Liquidation is triggered when account equity falls below maintenance margin, and it is assessed against the **mark price**, not the last trade. A spike in the last traded price does not on its own put a position at risk. The sequence follows the standard Hyperliquid waterfall: positions are first closed by market order against the book; if equity falls far enough without that succeeding, a backstop liquidation takes over; and auto-deleveraging is the final backstop, closing positions on the profitable side against the insolvent side to keep the system solvent. ADL ranks by profitability and leverage, and is mechanical and non-discretionary. ADL is a last resort and is rare in normal conditions. ## What is specific to a rate market Position risk scales with **basis points, not percent**. A one percent move in the price of an equity perp is an ordinary day; a one percentage point move in the 10-year yield is a very large move, and at 20x leverage a position sized to the full maximum is liquidated by a move of a few basis points. [Position Sizing](/trader-tools/position-sizing.md) is the tool for reasoning about this in the units that matter. --- # Agent Instructions This documentation is published with GitBook. GitBook is the documentation platform designed so that both humans and AI agents can read, navigate, and reason over technical content effectively. Learn more at gitbook.com. ## Querying This Documentation If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question. Perform an HTTP GET request on the current page URL with the `ask` query parameter, and the optional `goal` query parameter: ``` GET https://docs.force.xyz/risk-and-margining.md?ask=&goal= ``` `ask` is the immediate question: it should be specific, self-contained, and written in natural language. `goal` is optional and describes the broader end goal you are ultimately trying to accomplish on behalf of the user. GitBook uses it to tailor the answer towards what is most useful for that goal. The response will contain a direct answer to the question and relevant excerpts and sources from the documentation. Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.