Margin and Liquidation
Initial margin is the collateral required to open a position. Maintenance margin is the minimum equity required to keep it open. An exchange can begin liquidation when equity falls below that requirement.
Leverage Example
Section titled “Leverage Example”For a linear position worth 77,000 USDT, a simple initial-margin calculation is:
| Leverage | Initial Margin |
|---|---|
| 2× | 38,500 USDT |
| 5× | 15,400 USDT |
| 10× | 7,700 USDT |
These examples use notional divided by leverage, before fees, buffers, and exchange risk tiers. A 1% adverse move on the position costs 770 USDT regardless of which leverage setting you chose.
Cross and Isolated Margin
Section titled “Cross and Isolated Margin”| Mode | Collateral Used | What to Monitor |
|---|---|---|
| Isolated | Margin assigned to the position | Position equity, added or removed collateral, and maintenance requirement |
| Cross | The exchange account’s shared margin pool | Combined positions, funding debits, open-order reserves, and available margin |
A hedge on Bybit does not automatically replenish a Binance margin pool. Check each exchange and settlement asset separately.
Read the Risk Record
Section titled “Read the Risk Record”The risk example shows 2,506 USDT equity, 925.20 USDT initial margin, 23.13 USDT maintenance margin, and 1,580.80 USDT available margin. Its margin_ratio is maintenance margin divided by equity. These figures describe the sample account; the maintenance rate is specific to its assumptions.
Mark-price changes, fees, funding, collateral valuations, and transfers can change the record. Use the latest exchange-level risk and position data when checking liquidation exposure.
Change Leverage or Margin Mode
Section titled “Change Leverage or Margin Mode”Use the margin-settings request with the exchange, instrument, settlement asset, margin mode, and leverage. Lower leverage requires more initial collateral for the same position. Changing position size requires a filled order.
A MARGIN_MODE_CONFLICT means the requested change conflicts with the account or position state. Check open orders and exposure before retrying; some exchanges require them to be closed before switching modes.
Liquidation and Exit Orders
Section titled “Liquidation and Exit Orders”A liquidation-price estimate moves as equity and requirements change. A stop based on last-traded price can trigger later than a liquidation based on mark price. Compare the price references and allow for funding, fees, and execution slippage when placing exit orders.