Account Risk
Your Account Risk is a measurement of how close you are to getting liquidated. It's a function of your Margin Fraction and Maintenance Margin Fraction. The higher your Account Risk, the closer you are to liquidation. Make sure your account risk never reaches 100!
AccountRisk=โˆฃlogโกmin(1,MF)logโกMMFโˆ—100โˆฃAccount Risk = |\frac{\log{min(1, MF)}}{\log{MMF} * 100}|
The account risk formula linearizes the relationship between the Margin Fraction and the Maintenance Margin Fraction. This equation serves mostly a front-end purpose.
If you plan on doing your own risk calculations, it is probably easier to just compare the MF and MMF directly, rather than the Account Risk.
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