PM FAQ

For the full method, see Portfolio Margin. For the live numbers, see PM Risk Parameters.

The requirement

Why does my short spread near expiry need more than it can lose? Inside 48 hours, the gamma overlay is added on top of scanning risk. With spread credit, each matched short is charged at most the group's maximum loss, but that charge still sits on top of the scan. A $1,000-wide iron condor at 24 hours needs $2,657.74 (example 4). A defined-risk cap that charges such books their maximum loss is coming; see Upcoming changes.

Why does a long option need margin? I already paid for it. The premium is paid from cash. Margin covers what the position can lose from here, and a long option loses value when vol falls or spot moves away. A 30-day long BTC straddle loses $1,707 if vol drops 15% with spot unchanged, so that is its IM (example 3b).

Why does my ETH hedge not reduce my BTC margin? There is no credit across underlyings. Each underlying is charged its own worst scenario and the charges are added. Your collateral is shared; your risk offsets are not.

Why does my covered call need more margin than a naked call? Because the risk of a covered call is the selloff, and the short call gives back only its own value on the way down. The long perp's downside sets the margin (example 5). Buying a put caps it.

Is there a minimum margin per short option? Yes: the option floor, 1.5% of the terminal-payoff basis per underlying and expiry. It binds when the scan is small, usually on far out-of-the-money shorts. See Margin Floor.

Why is my perp margin higher than Hyperliquid shows? Hypercall charges the worse of PM and Hyperliquid. If a grid move would get your perp liquidated on Hyperliquid, PM assumes the collateral in that compartment is lost and the hedge is gone. See example 8.

What is the gap between IM and MM for? MM is 85% of position IM. IM gates new risk; MM triggers liquidation. An account that just meets IM can lose 15% of its position IM before it is liquidated.

What moves margin

My margin changed and I did not trade. Why? Any of: spot moved, the vol surface moved, an option crossed into the 48-hour overlay window, an option expired, your Hyperliquid balance or positions changed (which moves the Hyperliquid check), you took a premium or settlement loan, or the policy changed.

Do resting orders reduce my margin if they would hedge? No. An unfilled order never offsets a position or another order, because it might not fill. Resting orders only add IM, and never change MM. Combo legs are evaluated together.

Do parameter changes apply to positions I already hold? Yes. A new policy version applies to every account from the moment it is accepted, existing positions included. See How parameters change.

Are vol shocks bigger for short-dated options? No. The same multiplier applies at every expiry. Near-expiry risk is charged by the gamma overlay instead.

Are there earnings or event add-ons on single stocks? Not today. An event add-on is planned and has a column reserved in the parameter table. AAPL, META and MSFT already carry four extra scenarios.

Collateral and cash

What counts as collateral? USDC: your Account's HyperCore value (including perp P&L) plus your Hypercall cash, minus any PM loans. Other spot assets are not credited.

My collateral is on Hyperliquid. How do I pay for options? Premium comes from Hypercall cash. If cash is short, the lending pool lends the difference automatically and the loan is subtracted from your equity until repaid. See PM Financing.

Does selling options borrow from the pool? No. Premium received goes to your Hypercall cash.

Inputs and failures

What happens if a mark or the Hyperliquid snapshot is stale? Hypercall does not fill in a default. The requirement is reported unavailable (503 risk_inputs_unavailable) and orders that need it are refused until the input is fresh.

Which IV does PM use? Each option's own mark IV from the Hypercall volatility surface, the same IV behind the option's mark. See Vol Oracle.

Liquidation

What happens when I go below MM? Partial liquidation: Hypercall cancels your risk-adding orders and buys back short options at a bonus that rises from 0.5% to 10% over 5 minutes, until equity is back at MM × 1.05. If that does not work within 20 minutes, or you have no shorts left, or equity is negative, the account escalates to full liquidation. See Liquidation.

Does Hypercall liquidate my perps? Hypercall's partial liquidation closes short options. Hyperliquid can liquidate your perps under its own rules at any time, independently of Hypercall.

Who absorbs a loss beyond my equity? First your own HyperCore collateral. A loan that still cannot be recovered is written off against the lending pool's first-loss reserve, then against lenders. No other trader's position is closed to cover it: there is no auto-deleveraging. See Liquidation and PM Lending Pool.

Tools

How do I check a trade before sending it? Use the Simulate positions panel on the Portfolio margin page in the app, or POST /risk/simulate/portfolio and POST /risk/simulate/orders. Both run the production margin engine on your live account and change nothing. See Simulating PM Risk.

Who can use PM? Every account. You start from a fresh manager wallet; see Onboarding to Portfolio Margin.