Maintenance margin is the minimum amount of margin a trader needs to keep a position.

In perpetual contracts, the basic value of the maintenance margin required to hold a position is 0.5% (BTC) or 1 (ETH, EOS and XRP) of the position value. Margin requirements will increase or decrease as the risk limit changes.

When the margin amount of each position is lower than the maintenance margin level, the position will be forced to liquidate.

Example: A

trader uses 50 times leverage to buy 12,000 BTCUSD contracts at 8,000 USD.

The amount of margin for this position is:

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

= 0.03 BTC

= (12,000/8,000)× 0.5%

= 0.0075 BTC

This means that the position will not trigger a forced liquidation until it has suffered an unrealized loss of up to 0.0225 BTC (0.03 BTC-0.0075 BTC). Traders need to always pay attention to the margin situation of the position.

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