The margin in DeFi futures acts as: 1️⃣ Traditional margin, as in TradFi 2️⃣ Collateral hedging the counterparty risk 3️⃣ Under-collateralized assurance for a futures contract delivery Daily/periodic settlement can be incorporated into the dynamic margin requirements
Example of gradually increasing margin: - Day 1: 10% deposit required - Month 1: 25% required - Month 2: 50% required - Month 3 (Maturity): 100% required This flexibility allows parties to structure payments based on future cash flows 💰