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Hotstuff enables users to trade either in a cross-margin mode or isolated margin mode. All Positions in cross-margin share the same collateral whereas positions in isolated margin mode have their collateral constrained to their respective position only. Liquidation of an isolated position does not affect a user’s other isolated positions or their cross margin positions. Some perp markets operate in isolated-only mode where only isolated margin is allowed. Further isolated-only markets do not allow users to remove margin from their positions.

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Initial Margin

Initial margin is the margin required to open a position and cannot be withdrawn for cross margin positions. Isolated margin positions support adding and removing margin after the position is opened. 
IM = position size * mark price / leverage
The leverage of position is an integer and can be set by a user to any value between 1 and the max leverage. Max leverage of a perp instrument can vary according to the instrument as well a user’s margin tier.

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Maintenance Margin

Maintenance Margin is the total margin required to keep position(s) open. 
MM = position size * mark price / ( 2* max_leverage)