A Risk Limit is an artificial constraint that Everstrike imposes on the amount of leverage that you can use for your positions. For instance, on futures, if your position is very large, you may not be able to use 100x leverage. Your maximum permissible leverage in this situation may instead be 10x. Everstrike does this to prevent cascading liquidations related to large positions entering liquidation simultaneously. A cascading liquidation happens when the liquidation of one position leads to the liquidation of another position, causing an entire sequence of liquidations.
The Initial Risk Limit for futures and options is currently set to 0.0001% of your USD Position Size. This number is automatically added to the contract's Minimum Initial Margin requirements. In other words, if you are trading futures, and your Position Size is 100,000 USD, your Minimum Initial Margin requirement will now be:
Minimum Initial Margin = Base Minimum Initial Margin + (Risk Limit * Position Size) = 1.00% + (0.0001% * 100,000) = 11%
This means that you can only use
1 / 11% = 9x leverage
for such a position.