Collateral and Margin
On cypher, there are two types of accounts: Trading Accounts and Minting Accounts. To ensure protocol solvency, the liquidity in each of these accounts is isolated from one another; this means there is no cross collateralization between trading and minting accounts and each account has its own margin requirements.

Trading accounts

To open a levered position on cypher, a trader is required to deposit collateral. A trader's collateral requirements are defined by their trading c-ratio (
cRatiotradingcRatio_{trading}
). There are two important trading c-ratio thresholds for trading accounts, an initial trading c-ratio and a maintenance trading c-ratio.
A trader’s initial trading c-ratio is set to 150% and their maintenance trading c-ratio is set to 140%. Once a trading account’s maintenance trading c-ratio falls below 140%, their positions become open for liquidation and their position size will be reduced until their trading c-ratio is above 140%. A trader’s trading c-ratio is defined as
trading c-ratio:
cRatiotradingcRatio_{trading}

Minting Accounts

To learn more about minting, see this section of the cypher documentation.
On cypher, minters are the initial liquidity source for a certain market. For each market, minters are required to lock collateral in the form of USDC for the cAssets they mint, ensuring all assets on cypher are over collateralized. A minter’s collateralization ratio is defined by their minting c-ratio (
cRatiomintingcRatio_{minting}
). For minters, there are three important minting c-ratio thresholds for every minting account: an initial minting c-ratio, a liquidation minting c-ratio, and a maintenance minting c-ratio.
A minter’s initial minting c-ratio, liquidation minting c-ratio, and maintenance minting c-ratio are set to 125%, 115%, and 110%, respectively. Once a minting account’s maintenance minting c-ratio falls below 110%, their positions become open for liquidation and their position size will be reduced until their minting c-ratio is above the liquidation minting c-ratio of 115%. A minter’s minting c-ratio is defined as
minting c-ratio:
cRatiomintingcRatio_{minting}