Tiered Maintenance Margin Ratio

Published on Jul 14, 2023Updated on May 16, 20242 min read

1. What is maintenance margin ratio?

Maintenance margin ratio is the minimum margin rate required by the user to maintain the current position. When the margin ratio of a certain crypto (under single-currency cross margin) is ≤100%, the account will trigger forced reduction. Margin ratio = (Cross margin account balance + Cross Margin Account P&L - Trading fees of all pending orders) / Maintenance margin

Why do we set up "Tiered Maintenance Margin Ratio" rules?

In order for market liquidity to avoid impact brought by the forced liquidation of large positions and resulting in large losses, OKX implemented rules for tiered maintenance margin ratio. The larger the user's position, the higher the maintenance margin ratio, and the lower the maximum leverage times that the user can set.

3. How to calculate the user's position and view the corresponding tier of maintenance margin ratio?

Under isolated margin mode, the positions in each direction of each contract are calculated together for the number of contracts, the tier, and the required maintenance margin rate for the position. For example, a user holds a position of 1,000 BTC-USDC perpetual contracts in Tier 2. The following table displays the tiered maintenance margin ratio rules for BTC-USDC perpetual swaps.

tier

For more information on tiers for every coin, please refer to: https://www.okx.com/web3/dex-perp/test/market-info/position