Maintenance margin
Maintenance margin is the minimum collateral needed to keep a position open. If your margin after losses falls below this level, the position is liquidated.
How it works
The exchange sets the maintenance margin rate as a percentage of position size, for example 0.5% for small BTC positions. Larger positions and less liquid coins have higher rates. Exact values depend on the exchange and contract and are published in a risk limit table.
As long as your margin (collateral plus unrealized profit, or minus loss) stays above maintenance margin, you are fine. When losses eat the collateral down to that level, liquidation starts. What is left of the maintenance margin often covers liquidation costs and goes to the insurance fund.
Maintenance margin is why liquidation happens before you lose all your collateral. At 10x the theoretical buffer is 10%, but with 0.5% maintenance margin the real buffer is about 9.5%, and less again after fees.
A $20,000 BTC position with $2,000 margin (10x) and a 0.5% maintenance rate, which is $100. Liquidation happens when the loss reaches about $1,900 ($2,000 − $100), that is a move of about 9.5% against you.
The mistake is estimating liquidation as entry price minus 1/leverage and forgetting maintenance margin and fees. Use the exchange's calculator or the liquidation price in the position panel, and keep your stop well before it.
Questions and answers
What is maintenance margin in simple terms?
It is the minimum collateral below which the exchange force-closes your position. If losses eat your margin down to it, you get liquidated.
Where can I find the maintenance margin rate?
In the contract specifications or the risk limit table on the exchange. The rate rises as position size grows.
Can I avoid liquidation when margin is close to maintenance?
Yes: add margin, reduce the position or close it yourself. Better still, keep a stop that triggers well before liquidation.
Related terms
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Updated: 2026-10-19