💡 Get a head start! Learn all about Margin Accounts before they go live. This feature isn't available yet, but we’re working hard for its big debut!
A margin account gives you access to a line of credit backed by the value of your assets. This can increase your investing capacity and operational flexibility, but it also significantly increases the level of risk in your account.
Below, we explain the key concepts you should understand before using margin.
Margin status
Margin status represents your current risk level within the account.
It reflects how close you are to breaching maintenance requirements and may indicate whether you are in a:
Low-risk zone
Warning zone
Or close to a margin call
Hapi may send you notifications when your risk level changes. However, there are three levels:
Low: When the margin buffer is above 30%
Medium: When the margin buffer is between 17% and 30%
High: When the margin buffer is equal to or below 17%
⚠️ Important: Under certain market conditions, risk management actions (including liquidations) may be executed without prior notice.
The risk levels shown in the app are based on internal parameters and may change at any time.
Margin buffer
It is the difference between your account value and the total required maintenance margin. It works as a “safety cushion” that shows how much room you have before triggering a margin call.
The formula is: Margin buffer (%) = Safety margin / Account equity
If it is high, you have a safety cushion
If it is low, your account is at risk and may trigger a margin call
Note: Cryptocurrencies are not considered collateral.
Portfolio value
This is the total market value of all your stocks, available cash, and cryptocurrencies.
This value is the basis for calculating your access to credit and your risk level.
Total maintenance margin
This is the minimum amount you must maintain in your account to support the borrowed funds and varies depending on each asset.
You must always keep your portfolio value above the maintenance margin to avoid a margin call.
Some assets are not available for margin trading and can only be purchased using cash.
Example
(The following examples are for illustrative purposes only and do not represent actual or guaranteed results.)
The user has $10,000 in cash and $7,000 in total margin available. They want to invest in 3 assets:
Stock | Margin requirement | Maintenance margin | Equity (user capital) | Margin used | Portfolio value | Maintenance margin |
A | 50% | 30% | $4,000 | $2,500 | $6,500 | $1,950 |
B | 50% | 30% | $3,000 | $2,500 | $5,500 | $1,650 |
C | 100% | 100% | $3,000 | - | $3,000 | $3,000 |
Total |
|
| $10,000 | $5,000 | $15,000 | $6,600 |
👉 This indicates a relatively high margin buffer at that moment.
Portfolio value = $15,000
User equity = $10,000
Maintenance margin = $6,600
Safety margin = Equity – Maintenance Margin = $3,400
Margin buffer = Safety margin / User equity = 34%
Margin status: Low risk (Margin buffer > 30%)
Requirements to use margin
You must have at least USD $2,500 in equity to access a margin line
Availability depends on your portfolio value
Not all assets count as collateral (e.g., cryptocurrencies)
How it works
Your available cash is used first
Then, if applicable, the margin line is used
If you sell assets, proceeds are first applied to repay any margin debt
Interest rates
Applied only to the margin amount actually used
Calculated daily and charged monthly
The rate may vary depending on the amount used (for example, around 9% annually for smaller amounts, decreasing to around 6.25% for larger balances)
Risks and margin calls
If your portfolio value drops or your debt level increases, you may fall below maintenance requirements
This can trigger a margin call, requiring you to:
Deposit funds, or
Sell assets
⚠️ Important:
If the situation is not corrected, Hapi may partially or fully liquidate your positions, even without prior notice, to meet margin requirements.
If you have questions or experienced issues with margin, feel free to contact us — we’ll be happy to help.
Legal Disclaimer: Using margin involves risks and is not suitable for all investors. When trading on margin, you may lose more than your initial investment. Past performance does not guarantee future results. This content is for informational purposes only and does not constitute advice, a recommendation, or an offer to buy or sell securities. Margin use is subject to market conditions, regulatory requirements, and Hapi’s internal policies.