Leverage Ratio,Margin and Forced closure

Users will be able to leverage up to 10X on their Positional Orders. This means that for a match that allows Leverage Ratio of 10X, a user with EUR 100 credit will be able to place a Positional Order of up to EUR 1,000.

Margin is defined as the credit that VOdds deducts from user credit when they open a Positional Order. Its formulation is as follows:

Margin = Requested Opening Stake / Leverage Ratio

In the event that Unrealised Profit and Loss (UPL) exceeds 75% of the Margin, Vodds will request for a 50% top-up of the initial Margin. If the user credit does not allow for this Margin top-up, the order will be closed automatically.

For illustration:

User starts with a $100 credit. He places a Positional Order of $700 on a match that has a Leverage Ratio of 10 times.

Margin required = Requested Opening Stake / Leverage Ratio = $700 / 10 = $70

Vodds will require a margin of $70, hence $70 will be deducted from his initial credit of $100, leaving the user with credit of $30. Subsequently the match odds moves unfavourably against the user , and the Unrealised Profit and Loss (UPL) reaches -$60 (which is more than 75% of the Margin). This would trigger a Margin Top-Up request from the user.

Margin top up amount = 50% of initial Margin = 0.50 x $70 = $35

As the user only has credit of $30, the Margin Top Up request has failed. Vodds will then proceed to close the Positional Order automatically at the best odds available in the market.