# Maintenance Margin

## What is Maintenance Margin?

Maintenance Margin is a crucial term in trading, especially in futures. It refers to the minimum Margin Equity (i.e. Margin + unrealized PnL) that a user must maintain to keep their leveraged position. The Maintenance Margin is calculated based on the position notional value, at different margin tiers.

The Maintenance Margin is calculated based on the notional value level of the position. This means that regardless of the chosen leverage level, the calculation method for the Maintenance Margin for the same notional value level remains the same. Increasing the notional value level of a position does not change the leverage level of the previous level. The larger the position value, the higher the Maintenance Margin Rate.

It should be noted that Maintenance Margin directly affects the liquidation price. To avoid liquidation, it is strongly recommended that you close your position before the Margin Equity reaches the Maintenance Margin.

## How to Calculate Maintenance Margin

Maintenance Margin = Position Notional Value * Maintenance Margin Rate – Margin Amount

Using BTCUSDT perpetual as an example:

For example, if you use 20x leverage to buy 10 BTCUSDT at a price of 20,000 USDT, the position notional value would be 20,000 * 10 = 200,000 USDT. If your position is in the 2nd risk level, the margin required would be 200,000 / 20 = 10,000, and the Maintenance Margin would be 200,000 * 1.00% - 750 = 1,250.

The Maintenance Margin can also be calculated by splitting the notional value, where 150,000 is in risk level 1 and the remaining 200,000 - 150,000 = 50,000 is in risk level 2. The Maintenance Margin would be 150,000 * 0.50% + (200,000 - 150,000) * 1.00% = 1,250. The results of both methods are the same, indicating that the purpose of the quick calculated amount of Maintenance Margin is to simplify the calculation.

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Markets → Futures → BTCUSDT → Information → Leverage & Margin.