Maintenance Margin is the minimum margin required to continue holding a position.

**The Maintenance Margin (MM) shown in the position tab includes an estimated taker fee to close the position.

The base rate may refer to the rate shown in the app under Trade > Chart > Futures.

 

Inverse Perpetual Contracts

For Inverse perpetual contracts, the maintenance margin base rate is 0.5% for BTC and 1% for ETH, SOL and XRP of the contract value when opening a position. It will increase or decrease accordingly as risk limit changes.

 

Liquidation occurs when the isolated margin for the position is less than its maintenance margin level.

Maintenance Margin Formulas: 

Position Value = Contract quantity / Mark price

Maintenance Margin (MM) = (Position Value x MMR) + A fee to close



For example:

A trader buys 12,000 BTCUSD contracts at 8,000 USD with 50x leverage.Mark price remains at 8,000 USD.

The isolated margin used for this position is:

Initial margin

= 12,000/(8,000*50)

= 0.03 BTC

 

Maintenance Margin

= (12,000/8,000)×0.5%

= 0.0075 BTC

This means that this position could take an unrealized loss of up to 0.0225 BTC (0.03 BTC -0.0075 BTC) before the occurrence of liquidation. It is thus very important for traders to be constantly aware of the margin level on their positions.

 

The estimated closing position fee calculation varies depending on the position direction: Long/Short
    Fee to Close (Buy Order) = (Contract Quantity / Order Price) × [1 + 1 / Leverage] × Taker Fee Rate
    Fee to Close (Sell order) = (Contract Quantity / Order Price) × [1 − 1 / Leverage] × Taker Fee Rate

 

USDT Perpetual contracts:

 

Position Value = Contract Size x Mark Price

Maintenance Margin (MM) = (Position Value x MMR) + a fee to close

 

The estimated closing position fee calculation varies depending on the position direction: Long/Short
Estimated Fee to Close (Long Position) = Position Size × Entry Price × (1 − 1 / Leverage ) × Taker Fee Rate

Estimated Fee to Close (Short Position) = Position Size × Entry Price × (1 + 1 / Leverage) × Taker Fee Rate

 

Since the position value is calculated using the mark price, which keeps changing, the position value will also change accordingly. As a result, your risk limit tier adjusts in real time, which in turn affects the required maintenance margin rate (MMR).