In perpetual trading, when the position margin (actual investment amount) and the maintenance margin become equal, liquidation is executed. As an outcome, you will lose all of the margin used for the position. Thus, when the average market price reaches the liquidation price, the position is liquidated.
Depending on the coin type or risk level, the maintenance margin, initial margin and maximum usable leverage will fluctuate, but the maintenance margin will always be 1/2 of the initial margin. In the inverse perpetual contract, the standard value of the maintenance margin is 0.5% (BTC, ETH), 1% (EOS, XRP), and it changes according to the risk level. Traders can check the maximum leverage available for a position according to the risk limit setting by referring to the risk chart.
※ Note: Liquidation is triggered by the average market price. Therefore, if there is a difference between the latest market price and the market average price, please note that the unrealized P&L, which reflects the omission rate at the latest market price, may not exactly match the figures in the table below and are for reference only.
The formulas for maintenance margin and initial margin are shown below:
Initial Margin = Contract Value / Leverage
Maintenance Margin = Contract Value × Maintenance Margin Ratio
Contract Value (Position Value) = Quantity / Entry Price
BTCUSD Inverse Perpetual Contract
Ex: Position Value = 100 BTC (if no further position has been added)
| Leverage | Initial Margin (Position Value/ Leverage) | BTC Maintenance Margin (0.5%) | Unrealized P&L (% to reach liquidation) |
| 1x | 100 BTC | 0.5 BTC | -99.5 % |
| 10x | 10 BTC | 0.5 BTC | -95 % |
| 25x | 4 BTC | 0.5 BTC | -87.5 % |
| 50x | 2 BTC | 0.5 BTC | -75 % |
| 100x | 1 BTC | 0.5 BTC | -50 % |
ETHUSD Inverse Perpetual Contract
Ex: Position Value = 100 ETH (if no further position has been added)
| Leverage | Initial Margin (Position Value/ Leverage) | ETH Maintenance Margin (0.5%) | Unrealized P&L (% to reach liquidation) |
| 1x | 100 ETH | 0.5 ETH | -99.5 % |
| 10x | 10 ETH | 0.5 ETH | -95 % |
| 25x | 4 ETH | 0.5 ETH | -87.5 % |
| 50x | 2 ETH | 0.5 ETH | -75 % |
| 100x | 1 ETH | 0.5 ETH | -50 % |
EOSUSD Inverse Perpetual Contract
Ex: Position Value = 100 EOS (if no further position has been added)
| Leverage | Initial Margin (Position Value/ Leverage) | EOS Maintenance Margin (1%) | Unrealized P&L (% to reach liquidation) |
| 1x | 100 EOS | 1 EOS | -99 % |
| 10x | 10 EOS | 1 EOS | -90 % |
| 25x | 4 EOS | 1 EOS | -75 % |
| 50x | 2 EOS | 1 EOS | -50 % |
XRPUSD Inverse Perpetual Contract
Ex: Position Value = 100 XRP (if no further position has been added)
| Leverage | Initial Margin (Position Value/ Leverage) | XRP Maintenance Margin (1%) | Unrealized P&L (% to reach liquidation) |
| 1x | 100 XRP | 1 XRP | -99 % |
| 10x | 10 XRP | 1 XRP | -90 % |
| 25x | 4 XRP | 1 XRP | -75 % |
| 50x | 2 XRP | 1 XRP | -50 % |