SCCP-261: Increase Max Initial Leverage Slightly on All Markets
This SCCP proposes to increase
maxLeverage on all markets by 1. For markets set at 25, the parameter would increase to 26, and all markets set at 10 would be set at 11.
maxLeverage is multiplied by initial margin to find the maximum absolute notional value of a position. Since orders may fail due to price movements while setting or submitting orders, and adding to a position becomes impossible after opening a max leveraged position even if no price movement has occurred, this proposal suggests slightly raising the
maxLeverage of all markets to 1% above what is allowed in the UI.
Providing a small buffer between the
maxLeverage allowed by Synthetix and the leverage intended to be offered by partner front ends will reduce the number of delayed orders that fail, and allow more flexibility for users to modify their positions immediately after they're placed. Making this buffer relatively small compared with the overall amount of leverage offered ensures that the UX can be improved without significantly increasing risk to the system, or to traders.
Copyright and related rights waived via CC0.