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 + Forced-Liquidation Fee Rate.
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 Swaps / Latest Mark Price
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.
Under Fixed Margin Mode, the Number of Swaps, Tier, and the Maintenance Margin Ratio are calculated based on the specific position.
Under Cross Margin Mode, the Number of Swaps, Tier, and the Maintenance Margin Ratio are calculated based on all the positions. If a user opened both long and short positions in the same contract, our system will count the total number of swaps he/she holds and place him/her in the respective tier.
The Rules And Regulations Regarding The Ratio of Tiered Maintenance Margin are Listed as Below:：
Maximum Number of Contracts Available to be Opened in Each Tier = Maximum Number of Contracts Available to be Opened in The First Tier + (Tier Number - 1) * Volume of Increase
The Maintenance Margin Ratio of Each Tier = The Maintenance Margin Ratio of First Tier + (Tier Number - 1) * 0.50%
The Lowest Initial Maintenance Margin Ratio of Each Tier = The Lowest Maintenance Margin Ratio of First Tier + (Tier Number - 1) * 0.50%
Maximum Ratio of Leverage Available to Each Tier = 1 / The Lowest Initial Maintenance Margin Ratio of Each Tier
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