How Does the Exchange Calculate the Required Initial Margin for a Position?

The required Initial Margin is calculated as a percentage of the total notional value of the position. This percentage is inversely related to the leverage chosen by the trader.

For example, 10x leverage requires a 10% Initial Margin (1/10). The exchange also employs a tiered margin system where larger positions require a higher Initial Margin percentage, even at the same leverage, to account for the increased risk associated with position size.