Margin & Liquidation

BlockVault connects to the dYdX v4 protocol for perpetual trading. All margin management and liquidations happen directly on the dYdX blockchain.

Margin

Trading on dYdX requires USDC as collateral. The margin required depends on the leverage selected (up to 50x) and the specific market.

Funds are held in an isolated trading subaccount — separate from your main account. This means assets in your main account are not at risk from trading activity until you explicitly transfer them into the subaccount.

Liquidations

Liquidations are enforced entirely by the dYdX protocol:

• BlockVault does not manage risk — margin requirements, liquidations, and leverage limits are the protocol's responsibility.
• Liquidation prices are derived from on-chain oracles.
• BlockVault displays the estimated liquidation price for each open position.

Custody

• BlockVault does not custody funds — your assets remain on the dYdX blockchain under your control at all times.
• The trading key can only place and cancel orders — it cannot withdraw or transfer funds.