Bitcoin exchange Bitfinex announced that effective Monday, it will be updating and streamlining its margin rules.

Bitfinex is one of the few exchanges allowing traders to trade bitcoins on margin.

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They will be scrapping the “choose your leverage” feature, which previously offered a choice of 1:1, 2:1 and 2.5:1. The vast majority of traders chose the maximum value. Instead, a fixed maximum margin will be assigned to each product based on its volatility.

The “Tradeable Balance” will now account for all collateral indicated within a given pair (e.g. BTC/USD will account for USD balances as well, not just BTC). Traders had previously achieved 3.5:1 leverage when using BTC as collateral on a long BTC/USD swap. This will harmonize risk management.

As traders may be disappointed by the effective margin reduction, initial leverage will be increased to 3.33:1.

The company will also be doing away with the “leverage” terminology, instead referencing “initial margin” and “maintenance margin”, terms more commonly used in the trading industry. And instead of a ratio (x:1), a percentage will be expressed to represent the amount of equity needed relative to total positions. Initial margins are thus 30%, maintenance margins are 15%.

The new structure will simplify its adaptation to new product offerings in the future.