Measuring Risk - Ondo Perps

Understanding your risk exposure is critical when trading with leverage. The following metrics are available on the platform to help you monitor and manage your positions.

Term	Definition
Maintenance Margin Requirement	The total maintenance margin required across all open positions. Liquidation is triggered when Margin Balance falls below this value.
Margin Ratio	A measure of proximity to liquidation. Returns `0` with no open positions, above `0.5` indicates elevated risk, and `1` triggers liquidation.
Account Leverage	The notional value of all open positions divided by Margin Balance. New positions cannot be opened once Account Leverage reaches the contract’s Max Leverage.
Under Liquidation	Indicates whether the account is currently being liquidated.

When using tokenized stock collateral with open positions, a decline in your collateral’s price reduces your Margin Balance, so your Margin Ratio can rise toward liquidation even if your positions have not moved.