Smart Margin: Frequently Asked Questions
Smart margin accounts are a unique Kwenta offering that allows traders to trade any market by using a single margin account. With smart margin accounts, traders can seamlessly trade different markets with fewer transactions and less hassle. Learn here how to trade Smart Margin.
Yes, it is possible to open positions on the same market on both smart margin and isolated margin. Traders can have e.g. an ETH-PERP long position open on smart margin, switch to isolated margin and open a short on ETH-PERP, and manage them independently.
Smart margin provides traders with powerful risk management tools, letting them tailor each position to their personal trading style with an optional fee rejection parameter. This allows traders to have orders rejected if the current dynamic exchange fee spikes beyond acceptable levels.
Under isolated market contracts, users are forced to risk all of the collateral in a single market they deposit and can only protect collateral from liquidation by completely withdrawing the collateral they wish to protect. With Smart Margin, traders are able to select the amount of collateral they are comfortable risking when opening a position while unused collateral will stay safe in the Smart Margin if liquidations should occur.
By default, all Synthetix Futures contracts are isolated markets with no advanced order support, requiring traders to deposit and withdraw separately for each asset they wish to trade. With a Smart Margin account, traders can seamlessly trade different markets from a single account while receiving access to more advanced order types such as limit and stop market orders.
The minimum deposit and position size value for Smart Margin accounts is 50 sUSD.
In addition, the minimum position size must be 50 sUSD without any leverage. If your order is below the 50 sUSD minimum, reduce your leverage and reattempt the trade.
Example: A 250 sUSD position order at 10x leverage will only require 25 sUSD in collateral, which will fail to execute. Reducing your leverage to 5x will now require 50 sUSD collateral (the minimum) to open a 250 sUSD position. Alternatively increasing your position size to 500 sUSD will also solve this.
When Closing a Position
Traders can set as many limit or stop market orders as they want when closing an open position. So long the advanced orders do not exceed the current open position the advanced order will not reserve additional margin.
Traders can set as many limit or stop market orders up until their account margin is exhausted.
No trade fees will be imposed unless the keeper has successfully executed a traders advanced order.
This excludes eth paid to the network as a transaction fee
Advanced orders such as limit and stop market are executed by Gelato Keepers. Keepers need ETH to pay for gas in order to submit transactions to the blockchain. These costs will be drawn out of your account ETH balance. Traders can withdraw their account eth balance at any time if they do not have any pending advanced orders open.
The minimum account ETH balance is 0.01 ETH. Anytime your account ETH balance is below this minimum, the next advanced order will automatically deposit enough ETH to bring it back to 0.01 ETH.
Kwenta charges no additional fees for any of the tooling (advanced orders included); it provides outside of the required fees charged by our liquidity provider.