Maintenance margin
Also called: MM · maintenance margin rate · MMR
Definition
Maintenance margin is the minimum collateral you must keep in a leveraged position; if your margin falls below it, the position is liquidated.
This entry is shown in English.
How Maintenance margin works
After you open a position, your margin changes with unrealized profit and loss. The exchange compares it with a required minimum, the maintenance margin, which is a percentage of the position value. For major pairs at small sizes this rate is often well under 1%, but it rises for larger positions and riskier coins.
When your margin balance drops to the maintenance level, liquidation starts. Exchanges measure this with the mark price, not the last traded price, to avoid liquidations caused by brief spikes. Many platforms show a margin ratio; when it approaches 100%, you are close to liquidation.
You can move away from the maintenance level by adding margin, reducing the position, or lowering exposure. Because maintenance margin rates are tiered by position size, a large position can have a liquidation price closer to entry than you might expect. Check the risk limit or margin tier table on your exchange.
Example
Suppose you hold a 20,000 USDT position with 2,000 USDT of margin (10x) and the maintenance margin rate is 0.5%. The required minimum is 20,000 × 0.5% = 100 USDT. Your unrealized loss can grow to about 1,900 USDT before liquidation, ignoring fees. For a long, that is a 9.5% price drop. A larger position with a 2% rate would require 400 USDT and leave only 1,600 USDT of room.
Common mistakes
- Watching only the last price, when the exchange uses the mark price for maintenance checks.
- Assuming the maintenance rate is the same for every position size.
- Waiting until the margin ratio is near 100% before adding collateral.
Learn and practise
FAQ
What happens if my margin falls below maintenance margin?
The exchange's liquidation engine takes over the position and closes it, fully or in steps, and any remaining margin may be lost.
How do I avoid hitting maintenance margin?
Use lower leverage, size positions sensibly, set a stop-loss well before the liquidation price, and add margin early if needed.