Both futures and options on Quedex are margined, i.e. you don't have to deposit the whole value of the contract, only the margin. There are two levels of margin: Initial Margin and Maintenance Margin. Initial Margin is the level you have to satisfy to open a position and below which you will receive a margin call and Maintenance Margin is the level below which liquidation is triggered.
Initial and Maintenance Margins are calculated for all open positions (Initial is higher than Maintenance Margin) and all pending orders (where Maintenance Margin is equal to Initial Margin).
All the accounting values on Quedex are in BTC - this applies to P/Ls, Balances, Margin values and Settlements.
Your account has the following sub-accounts:
Balance- the total funds that you currently hold with the exchange (
= Deposits - Withdrawals +/- Realized P/L - Fees Paid + Rebates Received); this could be withdrawn if you closed all your positions and cancelled all your pending orders,
Total Initial Margin- sum of initial margins for all positions and orders,
Total Maintenance Margin- sum of maintenance margins for all positions and orders,
Total Locked For Orders- funds locked for order fees,
Total Unnsettled P/L(unsettled profit and loss, sometimes: variation margin) - the sum of P/L for all positions during the current trading session (see futures P/L and options P/L),
Total Pending Withdrawals- funds that are waiting for withdrawals you've requested,
Free Balance- the funds that may be spent for orders, new open positions, withdrawn, &c. This means that
Free Balance = Balance - Total Initial Margin - Total Locked For Orders - Total Pending Withdrawals + min(0, Unsettled P/L).
You will receive a margin call (a call to replenish funds to satisfy current margin requirements) when
Free Balance + max(0, Unsettled P/L) falls below 0 (your funds don't satisfy the initial margin level).
Your account will be liquidated if
Balance + Unsettled P/L - Total Locked For Orders - Total Pending Withdrawals < Total Maintenance Margin (your funds don't satisfy the maintenance margin level).
Liquidation proceeds until
Free Balance is greater than 0. All your pending withdrawals are first canceled. If this is not enough, all your pending orders are canceled and then, if this is still not enough, all your open positions are closed at market prices.
During liquidation, all your positions and balance is at risk. The balance that remains after liquidation may be transferred to the insurance fund. While Quedex may leave you a portion of what remains after a liquidation and a transfer to the insurance fund, don't count on it.