Maintenance Margin – BiKi Perpetual Contracts

BiKi Perpetual Contracts - Maintenance Margin
BiKi Perpetual Contracts – Maintenance Margin

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%

Example: 

  • 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

Leave a Reply

Your email address will not be published. Required fields are marked *