Sub-accounts and Margin


At Foundation, users are provided with one spot account and the option to create up to 15 perpetual sub-accounts, all linked to their original user wallet. The spot account allows for the deposit and withdrawal of all supported tokens for spot trading. In contrast, perpetual accounts are limited to handling only USDC for deposits and withdrawals. Users can freely transfer USDC between their perpetual and spot accounts.

Our risk engine automatically evaluates accounts during USDC withdrawal or transfer requests to ensure that the maintenance margin remains at a safe level, safeguarding both the user's interests and the platform's stability.

Cross Margin

Cross-margining is a feature that optimizes margin requirements by assessing the total risk across various positions in a portfolio. In this system, open positions utilize a shared pool of capital to meet individual margin requirements. This approach not only decreases the likelihood of liquidation for any single position but also reduces the initial margin necessary for each trade.

In our platform, Foundation, cross-margining is the standard mode of operation. Each perpetual account is designed to contribute its margin to this collective pool. A cross position faces liquidation when the account's value, inclusive of unrealized profit and loss (PnL), falls below the product of the maintenance margin and the total open notional value of all positions.

Isolated Margin

Many exchanges provide the option of trading with Isolated Margin, a feature that allocates a specific margin to a singular leveraged position. This allows traders to confine their risk exposure to that particular trade alone. The key aspect of Isolated Margin is that it is distinct and not mixed with margins of other positions, thereby effectively isolating the risk.

At Foundation, we have developed a streamlined method to facilitate isolated risk management. Traders can set up isolated margin positions through the creation of new sub-accounts. This process involves a trader establishing a new sub-account, depositing the necessary collateral into it, and then launching a new position within this sub-account. This approach allows us to seamlessly integrate the concept of isolated margin into our system without adding unnecessary complexity.