The Maintenance Margin is the minimum margin to keep a position open and avoid liquidation.
Formula:Maintenance Margin = (Quantity of Contract / Entry Price) x Maintenance Margin Rate (1%)
BiKi Perpetual Contracts Maintenance margin rate is 1%
- Trader takes 20,000 BTCUSDT position at 10,000 BTCUSDT with 50x leverage
- Initial Margin = 20,000/50 leverage= 400 USDT
- Maintenance Margin = 20,000/10,000 x 1% = 200 USDT
- Trader’s position can take an unrealized loss up to 200 USDT (400USDT – 200 USDT) before liquidation takes place