> For the complete documentation index, see [llms.txt](https://opusdigital.gitbook.io/docs/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://opusdigital.gitbook.io/docs/opusdigital-ecosystem/opustreasury/margining.md). # Margining The selling of under-collateralized options could create risks for LPs that are lending their liquidity to LTsthat may not have posted sufficient collateral to cover their margin requirements. To eliminate this risk, the margin and liquidation engine secures the LPs by liquidating positions that could cause unrecoverable LT losses. Accordingly, when an LT enters a trade, OpusTreasury queries their collateral position to ensure that sufficient margin is available to enter the trade. As an LT’s position changes over shifts in underlying price, volatility, and time, OpusTreasury will continuously update, net, and determine required collateral. Margin collateral is netted and managed on an individual portfolio level enabling LTs to deploy capital more efficiently. Margin and liquidation engine requirements will be initially set as follows: * For Long Positions: min(100% \* mark price, 10% of spot) * For Short Call Positions: max((20% - OTM Amount/spot)\*spot), 12.5%\* spot) * For Short Put Positions: min(max((20% - OTM Amount/spot)\*spot,12.5%\*spot), 50% of strike) Opus reserves the right to change margin requirements as market conditions warrant.