Maintenance Margin Ratio

The maintenance margin ratio (MMR) is the minimum ratio of equity to position value required to keep a position open. When your equity falls below this ratio, liquidation is triggered.

Formula

Margin Ratio = (Account Equity / Total Position Value) × 100%

If margin ratio ≤ maintenance margin ratio → Liquidation triggered

Example:

• Position value: $100,000
• Maintenance margin ratio: 1%
• Minimum equity needed: $1,000
• If equity drops below $1,000 → position is liquidated

Tiered Maintenance Margin

Most crypto exchanges use tiered MMR based on position size. Larger positions require higher maintenance margins because they are harder to liquidate without market impact.