Maintenance margin is intended to protect exchanges and traders from possible losses. When the market moves against the position holder and the account margin is insufficient to maintain the position (i.e., when the current maintenance margin ratio (MMR) falls to 100% or below), liquidation will be triggered to close part or all of the position to avoid further losses.
How Maintenance Margin is Calculated
The required maintenance margin in futures trading is calculated using a tiered algorithm. Different risk limit tiers have corresponding MMR. The higher the risk limit, the higher the MMR. Factors such as position value, tiered MMR, and fees affect the final maintenance margin.
Pair | Tier | Risk Limit | Tiered MMR | IMR | Max Leverage |
BTC/USDT | 1 | 20,000 | 0.40% | 0.80% | 125x |
BTC/USDT | 2 | 50,000 | 0.45% | 0.90% | 111x |
BTC/USDT | 3 | 100,000 | 0.50% | 1% | 100x |
BTC/USDT | 4 | 200,000 | 0.70% | 1.33% | 75x |
BTC/USDT | 5 | 1,000,000 | 1.00% | 2.00% | 50x |
BTC/USDT | 6 | 2,000,000 | 2.00% | 4.00% | 25x |
BTC/USDT | 7 | 3,000,000 | 5.00% | 10.00% | 10x |
BTC/USDT | 8 | 5,000,000 | 50.00% | 95.00% | 1.05x |
Example Calculation:
Assume a user opens a position worth 150,000 USDT. The required maintenance margin would be: 20,000 × 0.40% + (50,000 - 20,000) × 0.45% + (100,000 - 50,000) × 0.50% + (150,000 - 100,000) × 0.70% = 815 USDT
In one-way mode: Maintenance Margin (For a single position) = Required Maintenance Margin + Estimated Liquidation Fee
In hedge mode: Maintenance Margin (For hedging positions) = max(Maintenance Margin for Long, Maintenance Margin for Short) + Estimated Liquidation Fee for Hedging Positions
The maintenance margin for long and short positions is calculated using the same tiered structure as in one-way mode.
In cross margin mode: Maintenance Margin = Sum of Maintenance Margins for All Positions
Tier
| Risk Limit | IMR | Tiered MMR | Max Leverage |
1 | 1,000,000 | 0.80% | 0.40% | 125x |
2 | 1,500,000 | 0.90% | 0.45% | 111x |
3 | 2,000,000 | 1% | 0.50% | 100x |
4 | 3,000,000 | 1.33% | 0.70% | 75x |
Required Maintenance Margin:
1,000,000 × 0.40% + (1,500,000 - 1,000,000) × 0.45% + (1,800,000 - 1,500,000) × 0.50% = 7,750 USDT
Maintenance Margin (For a single position) = 7,750 + 1,800,000 × 0.075% = 9,100 USDT
Initial Margin = 1,800,000 / 100 + 1,800,000 × 0.075% = 19,350 USDT
If there are no other funds in the user's account, the margin ratio for the position = 19,350 / 9,100 = 212.64%