Ladder Maintenance Margin Rate

Maintenance Margin Rate

The margin rate reflects the risk level of a trader's open positions. The maintenance margin rate is the minimum margin required to keep a position open. If your margin rate falls to the maintenance margin rate, your position is at risk of being forcibly taken over (liquidated) by the system.

To protect users and the market from unfair or unnecessary liquidations caused by temporary price swings or illiquidity, the system uses the marked price, not just the last trade price, to calculate margin rates.

Laddered Maintenance Margin System

To limit market disruption and reduce the risk of large forced liquidations, the platform employs a laddered maintenance margin system:

• Position sizes are divided into tiers ("ladders").

• Each ladder has its own (higher) maintenance margin rate.

  • As your position size increases, the required maintenance margin rate also increases.

• If your current margin falls below the required rate for your tier, the system will reduce your position to the maximum allowed size for the next lower tier.

This "step-down" mechanism helps manage risk more gradually and reduces the chance of sudden, large liquidations that could impact both the trader and the broader market.

In summary:

• The maintenance margin rate ensures that each position maintains an adequate safety buffer.

• The ladder system encourages more responsible risk-taking and protects market liquidity, especially for large positions.