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Why is my position higher than my Copy Leader's?
Why is my position higher than my Copy Leader's?
Updated over a week ago

Even if the Leader were to set a separate isolated margin, Copiers could still enter positions with cross margins to reduce the likelihood of liquidation. Cross margins not only lower the liquidation price but also minimize the risk of potential manual adjustments of the margin ratio by the Leader after the fact.

For example, if the Leader entered a long position of $100 with a 1x leverage and $1,000 in assets, but the Copier only had $500, the Copier would enter a position equivalent to $50 with cross margin.

The leverage varies depending on the product, and the cross margin selects the larger value among the ones allowed by the product. Generally, that's 25x. As the position size is $50 and the Copier has a 25x cross margin, only $2 would be used as margin for the position. However, since the Copier replicates the entire position, they would share the same risk as the Leader's.

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