Threshold margin (mm500)

What happens

Three traders open long perp positions of varying leverage against the same maker quote at 110. At block 3 a mark-book lands at midpoint 100, putting all longs into unrealized loss. With the default 200bps maintenance margin, only the deepest-leverage account (account 30) crosses the threshold and gets closed via the write-back loop; the other two survive. Tighten the dial via `--maintenance-margin-bps 500` and a second account (account 20) ALSO crosses; loosen via `--maintenance-margin-bps 10` and only the unavoidable case (account 30) fires. The first openhl scenario whose outcome is sensitive to the margin-bps dial.

Declared outcomes

Each declared outcome is scored ✓ pass / ✗ fail against the run’s actual state.

• Four accounts exist after trading (3 buyers + 1 maker)
• Exactly three fills (the three market buys cross the single maker quote)
• No surprise fills beyond the three buys
• Mark settles at 100 once the block-3 mark-book lands (Buy 99 / Sell 101 → midpoint 100)
• At default 200bps maintenance exactly one liquidation fires (account 30) — write-back closes it; subsequent ticks see no underwater accounts
• No more than 1 liquidation fires under default params (the other two buyers survive) (observed total liquidation scan-hits = 2 (expected ≤ 1))
• Account 30 ends with position zeroed by the liquidation close (no longer the +20 long it opened with)
• Maker (account 100) is force-closed via ADL when account 30 goes underwater — position drops from -30 to 0
• Alice (account 10) survives with her +5 long unchanged (her 500 collateral easily covers maintenance)

8 of 9 outcome(s) verified.

Verbatim report

The exact 5-section report the run emits — identical every run.

─── scenario: threshold-margin ────────────────────────────────────
HEADLINE ⚠: Mark settles to 100; at default 200bps maintenance only the deepest-leverage trader (account 30) is liquidated. Tighten via --maintenance-margin-bps to flip more accounts.

DESCRIPTION:
  Three traders open long perp positions of varying leverage against the same maker quote at 110. At block 3 a mark-book lands at midpoint 100, putting all longs into unrealized loss. With the default 200bps maintenance margin, only the deepest-leverage account (account 30) crosses the threshold and gets closed via the write-back loop; the other two survive. Tighten the dial via `--maintenance-margin-bps 500` and a second account (account 20) ALSO crosses; loosen via `--maintenance-margin-bps 10` and only the unavoidable case (account 30) fires. The first openhl scenario whose outcome is sensitive to the margin-bps dial.

TIMELINE (per-block):
  height  mark    src              trades  fills  deposits  liqs  adl  fund
  ------  ------  ---------------  ------  -----  --------  ----  ---  ----
       1     100  stub-empty-book       1      0         4     0    —     —
       2     100  stub-empty-book       3      3         0     2  yes     —
       3     100  clob                  2      0         0     0    —     —
       4     100  clob                  0      0         0     0    —     —
       5     100  clob                  0      0         0     0    —     —

ACCOUNT DELTA (final − initial):
  account  collateral  position  avg_entry
  -------  ----------  --------  ---------
       10         500         5        110
       20           3         0        110
       30           0         0        110
      100        1127         0        110
  (initial account count: 0, final account count: 4)

OUTCOMES:
  ✓ Four accounts exist after trading (3 buyers + 1 maker)
  ✓ Exactly three fills (the three market buys cross the single maker quote)
  ✓ No surprise fills beyond the three buys
  ✓ Mark settles at 100 once the block-3 mark-book lands (Buy 99 / Sell 101 → midpoint 100)
  ✓ At default 200bps maintenance exactly one liquidation fires (account 30) — write-back closes it; subsequent ticks see no underwater accounts
  ✗ No more than 1 liquidation fires under default params (the other two buyers survive) (observed total liquidation scan-hits = 2 (expected ≤ 1))
  ✓ Account 30 ends with position zeroed by the liquidation close (no longer the +20 long it opened with)
  ✓ Maker (account 100) is force-closed via ADL when account 30 goes underwater — position drops from -30 to 0
  ✓ Alice (account 10) survives with her +5 long unchanged (her 500 collateral easily covers maintenance)

  8 of 9 outcome(s) verified.

NOTE: v1 runs the scenario in-process against a unit-provider
`LiveRethEvmBridge<()>` (no Reth boot). For the production-shape
run (real Reth + Malachite + JSON-RPC), use:
  openhl reth-devnet --chain-history scenarios/threshold-margin.json --rounds 5

NEXT:
  • Adopt this engine  : https://github.com/psyto/rdk
  • Custom build       : https://fabrknt.com/waitlist.html?product=evm-perp&intent=build
  • Hosted access      : https://fabrknt.com/waitlist.html?product=evm-perp&intent=hosted

Other scenarios