Maintenance Margin is the minimum margin required to continue holding a position.

It will increase or decrease depending on the trader's trading volume. Liquidation occurs when the isolated margin for the position is less than its maintenance margin level.

FORMULA

Maintenance Margin = Maintenance Margin Rate * Order Value

Order Value = Contract Size * Entry Price

Maintenance Margin Rate required for a position is based on the selected margin level requirements determined by its position value.

Example

Trader place a long position of 1 BTC at VNDC 200,000,000 with 50x leverage (Isolated Margin)

Initial Margin = (1 * 200000000) / 50 = 4,000,000 VNDC

Maintenance Margin = 1 * 200000000 * 0.1% = 200,000 VNDC

This means that this position could take an unrealized loss (Mark Price) of up to 3,800,000 VNDC (4,000,000 VNDC – 200,000 VNDC) before liquidation takes place.