Health, margin and collateral factors

Vadium uses health calculations to determine whether a position can take more risk, withdraw collateral or remain open.

Initial margin

The collateral requirement for opening or increasing a position. Initial requirements should be more conservative than liquidation thresholds.

Maintenance margin

The minimum risk buffer required to keep a position open during normal market conditions.

Carry margin

An additional stress requirement applied before periods when the underlying market may be closed or execution quality may deteriorate.

Live Health = risk-adjusted collateral / risk-adjusted debt
Carry Health = (stressed collateral + guaranteed protection) / stressed debt

Live Health is used when prices and executable liquidity are reliable. Carry Health is a stress test for closed-market periods, weekends, holidays or other known execution constraints.