What is maintenance margin?

Maintenance margin is the minimum ongoing collateral requirement for keeping a leveraged position open. In crypto contract trading, a platform compares eligible collateral equity with this requirement to determine whether a position can continue. It is a calculated requirement, not an additional fee deducted.

How does it differ from actual equity?

Maintenance margin describes “how much is needed”; equity describes “how much is actually available.” Margin assets become equity after including unrealized position results; platforms may further adjust eligible equity for collateral discounts, liabilities and other rules.

For example, a requirement of 5 USDT with eligible equity of 20 USDT means collateral exceeds the requirement. If equity falls to 4 while the requirement stays at 5, it no longer covers maintenance margin. USDT is the denomination asset; these figures illustrate the relationship and exclude actual liquidation fees.

Maintenance margin is therefore not separate money held in the account or the current margin balance. See margin for how assets enter equity.

How is maintenance margin calculated?

In a simplified proportional model, it equals position value multiplied by the maintenance margin rate. This rate is the proportion used to calculate the requirement.

Maintenance margin = position value × maintenance margin rate

If current position value is 1,000 USDT and the rate is 0.5%, the requirement is 1,000 × 0.5% = 5 USDT. This example excludes tier deductions and additional fees and is not a platform’s complete formula.

The requirement can change too. For a linear contract whose results equal quantity times price difference, fixed quantity with risk-valued position value falling from 1,000 to 900 USDT lowers the requirement from 5 to 4.5 USDT if the rate remains 0.5%. Meanwhile, price changes affect unrealized results and actual equity. A lower requirement does not necessarily increase the surplus of equity over requirements.

The risk valuation price and contract denomination affect position value. A commonly used mark price is a calculated valuation reference, not a guaranteed executable quote.

Why might larger positions need a higher collateral proportion?

Tiered products set different maintenance requirements by position size. Crossing a tier boundary can increase the applicable rate.

Larger positions involve more quantity to close, which can have greater price impact relative to executable market quantity. Higher collateral requirements are one constraint platforms apply to this handling risk.

The exact amount follows the product’s tier calculation: rate application, deductions and other adjustments all affect the final requirement.

What happens when collateral is insufficient?

Risk rules check whether eligible equity covers maintenance requirements and fees. When handling conditions are met, the platform may cancel some orders, reduce positions and decide whether further closing is needed based on residual risk; it need not close all positions at once.

For example, relevant OKX contract rules include maintenance margin and liquidation fees. Comparing equity with a fee-free maintenance figure alone cannot fully determine actual triggers. See liquidation for the process.

Working backward from current positions, equity and requirements to the price at which liquidation might trigger gives an estimated liquidation price. It estimates current conditions, not a guaranteed execution level.

Which side changes when collateral is added or positions reduced?

Adding eligible collateral increases collateral equity, other conditions unchanged; it does not by itself lower the maintenance requirement for the same position.

Reducing a position usually lowers its remaining maintenance requirement, but execution also settles results, incurs fees and can change tiers. Coverage requires comparing remaining equity with recalculated requirements, not just the reduction in quantity.

How does it relate to initial margin and margin ratios?

Initial margin is required to open; maintenance margin is required to continue. Meeting opening requirements does not remove ongoing checks as positions and accounts change.

A risk-monitoring margin ratio expresses eligible equity and maintenance requirements as a product-defined ratio. One is a required amount; the other a comparison. Formulas can run in opposite directions, so a percentage alone does not reveal its meaning.

Related terms

Explore margin, margin ratios and liquidation, or return to the crypto glossary.

References

• OKX: Futures margin calculation rules
• OKX: Liquidation FAQ