1. What is Maintenance Margin Ratio?
Maintenance Margin Ratio is the lowest required Margin Ratio for a user to maintain the current open position(s). When the Margin Ratio of the account is lower than the Maintenance Margin Ratio + Liquidation Fee Rate, full or partial liquidation will occur.
Fixed Margin Mode: Margin Ratio = (Fixed Margin + UPL) / Position Value
Cross Margin Mode: Margin Ratio = (Balance + RPL + UPL) / Position Value
Position Value = Face Value x Number of contracts x Latest Mark Price
2. Importance of Maintenance Margin Ratio
This tiered Maintenance Margin Ratio system is adopted to avoid the liquidation of large positions, causing big impact on market liquidity. Basically, the larger the positions held, the higher Maintenance Margin Ratio will be required, and the lower the Leverage will be available.
3. Maintenance Margin Ratio Tiers
The number of contracts, tier, and the Maintenance Margin Ratio are calculated based on the specific position.
|The maximum number of contract(cont)||highest leverage||The maintenance margin ratio|