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 Mark price reaches the liquidation price, the position is liquidated.
Depending on the trade pair or risk level, the maintenance margin, initial margin and maximum usable leverage will vary. To calculate the initial margin for a USDT perpetual contract, simply multiply the contract value by the initial margin rate. Traders can check the maximum leverage available for a position according to the risk limit setting by referring to the risk chart.
※ Note: Please note that the Unrealized P&L are reflected based on the Last Traded Price, but Liquidation is triggered by the Mark Price. Therefore the figures shown in the table below may not reflect the perfect match as what you see on your trading page 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 Rate
Contract Value (Position Value) = Quantity × Entry Price
Maintenance Margin and Initial Margin Standard Rates by Transaction Type
|
Transaction Type |
Maintenance Margin Base Rate |
Initial Margin Base Rate |
|
BTCUSDT / ETHUSDT |
0.5% |
1% |
|
LTCUSDT/BCHUSDT/XRPUSDT/EOSUSDT/BNBUSDT |
1% |
2% |
|
DOTUSDT/DOGEUSDT/ETCUSDT/MANAUSDT/NEARUSDT |
2% |
4% |
|
KNCUSDT/PEOPLEUSDT |
4% |
8% |
BTCUSDT/ETHUSDT Perpetual Contract
Ex: Position Value = 100 USDT (if no further position has been added)
| Leverage | Initial Margin (Position Value/ Leverage) | Maintainence Margin (0.5%) | Unrealized P&L (% to reach liquidation) |
| 1x | 100 USDT | 0.5 USDT | -99.5 % |
| 10x | 10 USDT | 0.5 USDT | -95 % |
| 25x | 4 USDT | 0.5 USDT | -87.5 % |
| 50x | 2 USDT | 0.5 USDT | -75 % |
| 100x | 1 USDT | 0.5 USDT |
-50 % |
Perpetual Contracts: LTCUSDT/BCHUSDT/XRPUSDT/EOSUSDT/BNBUSDT/SOLUSDT/ADAUSDT/MATICUSDT/SHIB1000USDT/SANDUSDT/GALAUSDT/AVAXUSDT/LUNAUSDT/LINKUSDT/LINKUSDT
Ex: Position Value = 100 USDT (if no further position has been added)
| Leverage | Initial Margin (Position Value/ Leverage) | Maintenance Margin (1%) | Unrealized P&L (% to reach liquidation) |
| 1x | 100 USDT | 1 USDT | -99 % |
| 10x | 10 USDT | 1 USDT | -90 % |
| 25x | 4 USDT | 1 USDT | -75 % |
| 50x | 2 USDT | 1 USDT | -50 % |
Ex: Position Value = 100 USDT (if no further position has been added)
| Leverage | Initial Margin (Position Value/ Leverage) | Maintenance Margin (2%) | Unrealized P&L (% to reach liquidation) |
| 1x | 100 USDT | 2USDT | -98 % |
| 10x | 10 USDT | 2USDT | -80 % |
| 25x | 4 USDT | 2USDT | -50 % |
KNCUSDT/PEOPLEUSDT Perpetual Contracts
Ex: Position Value = 100 USDT (if no further position has been added)
| Leverage | Initial Margin (Position Value/ Leverage) | Maintenance Margin (4%) | Unrealized P&L (% to reach liquidation) |
| 1x | 100 USDT | 4 USDT | -96 % |
| 10x | 10 USDT | 4 USDT | -60 % |
| 12.5x | 8 USDT | 4 USDT | -50 % |