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

Illya Gerasymchuk 2024-07-01 22:00

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 💰