# What are min/max limits for margin trade?

Here is a table displaying the nature of the Maximum and Minimum limit of transactions on the platform for the reserve of different currencies accounting the volatility of these tokens:
trade_buffer: When the effective collateral value (stoploss% * total_collateral_value) drops below (100% + (trade_premium)% + (trade_buffer)% / (initial_leverage)%) of the loan value in real-time, then your trade enters the critical region and gets liquidated by one of our relayers.

max_trade_leverage: While creating a new loan, the maximum loan value that can be taken for a particular collateral value. If max_loan_leverage = 3x, max 3 ETH loan can be taken with collateral worth 1 ETH in any currency.

max_trade_in_eth: The maximum amount of trade allowed in the value of Ethereum for the collateral amount placed in any currency

min_trade_in_eth: The minimum amount of loan allowed in the value of Ethereum for the collateral amount placed in any currency

Trade Example: ETH Long against DAI with LINK as collateral with 40% Stop loss

Given, 1 LINK = \$3, 1 ETH = \$300, 1 DAI = \$1

=> 1 ETH = 100 LINK

=> 1 ETH = 300 DAI

1. Max Trade Amount allowed while creation = MIN(max_trade_in_eth for loan currency, max_trade_in_eth for collateral currency, max_trade_in_eth for trade currency) = MIN(max_trade_in_eth for DAI, max_trade_in_eth for LINK, max_trade_in_eth for ETH) = MIN(15 ETH, 10 ETH, 15 ETH) = 10 ETH equivalent of loan currency = 10 ETH equivalent of DAI = 10 * 300 = 3000 DAI

2. Max Leverage allowed while creation = MIN(max_trade_leverage for DAI, max_trade_leverage for LINK, max_trade_leverage for ETH ) = MIN(2x, 3x, 3x) = 2x

3. Buffer to be considered for auto-liquidation = MAX(trade_buffer for DAI, trade_buffer for LINK, trade_buffer for ETH)% = MAX(15, 10, 10)% = 15%

4. Collateral Amount to be put while creation = (Max Loan Amount {1}) * (Max Leverage {2}) in LINK = 3000 DAI * 3x = 1500 DAI = 1500 / 3 LINK = 500 LINK

5. Default Limit while auto-liquidation:

collateral_currency_price * collateral_amount * stoploss <= (loan_currency_price * loan_amount * (100 + premium + buffer/initial_leverage) - trade_currency_price * trade_amount * 100)

collateral_currency_price * 500 LINK * 40 <= (loan_currency_price * 3000 DAI * (100 + 1 + 7.5)) - Trade Currency Price * 10 ETH * 100

If the above condition is true, then the trade would be liquidated.  