Understanding the Auto Margin Addition Function
1. About the Auto Margin Addition Function
The Auto Margin Addition function helps traders prevent liquidation.
When this feature is enabled, the system will automatically add available margin to your existing positions when liquidation is about to be triggered, thereby extending the safety range of your position.
Each time, the amount of margin automatically added equals the position’s maintenance margin.
If the available margin is insufficient, the system will first cancel unfilled orders to release margin, and then automatically add the remaining available margin to the position.
After margin is added, the liquidation price moves further away from the mark price, reducing liquidation risk.
2. Formula for Auto Margin Addition
2.1 USDT-M Futures
Amount of margin automatically added each time = Entry Price × Contract Quantity × Contract Size × Maintenance Margin Rate
2.2 Coin-M Futures
Amount of margin automatically added each time = Contract Quantity × Contract Size × Maintenance Margin Rate ÷ Entry Price
3. Example: BTC_USDT Futures
Suppose a trader opens a long position of 5,000 contracts on BTC_USDT at a price of 18,000 USDT with 10x leverage.
The estimated liquidation price is 16,288.98 USDT, and the trader has 50 USDT available margin.
When the mark price drops to 16,288.98 USDT (liquidation price), the system automatically initiates the auto margin addition process.
According to the formula, 36 USDT is added, and the new liquidation price becomes 16,188 USDT, preventing liquidation.
If BTC_USDT continues to fall and reaches the new liquidation price of 16,188 USDT, the system performs the auto margin addition again.
However, only 14 USDT of available margin remains.
If the amount required is less than the available balance, it will be added normally; otherwise, the remaining 14 USDT will be added, and a new estimated liquidation price will be recalculated.
4. Important Notes
- When liquidation is triggered, the system will first cancel all unfilled active orders to release more margin and prevent liquidation.
- The Auto Margin Addition function is only available in Isolated Margin Mode and is not supported in Cross Margin Mode.