Maintenance Margin Calculation

Maintenance margin is the minimum margin a trader must maintain in their account to keep an open position from being liquidated. If unrealized losses cause the account’s actual margin to fall below this minimum requirement, the system will automatically trigger liquidation.

As the value of a trader’s position (i.e., position value + order value) increases and reaches higher risk levels, the required maintenance margin rate also rises, which increases the required margin amount. Each trading pair has a base Maintenance Margin Rate (MMR), which adjusts according to different risk levels.

Example: Suppose a trader opens a BTCUSDT position. If the position value is between 1,000,000 – 2,000,000 USDT, the required MMR is 0.5% of the position value. If the position value increases to the range of 2,000,000 – 5,000,000 USDT, the MMR rises to 0.67% of the position value.

Assume the mark price is 120,000 USDT. A trader opens 10 BTC with 50× leverage at 120,000 USDT each.

Position Value = Number of Futures × Mark Price = 10x 120,000 = 1,200,000 USDT

 

Initial Margin = Position Value ÷ Leverage = 10x 120,000 / 50 = 24,000USDT

 

Maintenance Margin = Position Value × Maintenance Margin Rate

= (1,200,000 x 0.5%)

= 6,000USDT

 

This means the position can sustain up to 18,000 USDT (=Initial Margin – Maintenance Margin) in unrealized losses before a liquidation is triggered. Traders should closely monitor their margin levels to avoid forced liquidation.