> For the complete documentation index, see [llms.txt](https://docs.bbx.com/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.bbx.com/business/on-chain-perpetual-trading/margin.md).

# Margin

Maintenance margin is the minimum margin required to keep a position open. If unrealized losses cause the position margin to fall below this threshold, forced liquidation is triggered. BBX adopts a tiered risk framework to set maintenance margin requirements. As the notional value of a position increases, the required maintenance margin rate also increases.

Formula: Maintenance Margin (MM) = Position Value × Maintenance Margin Rate

* Position Value = Number of Contracts × Mark Price
* Initial Margin (IM) = Position Value ÷ Leverage

Traders should closely monitor the margin ratio, liquidation price, and the relationship between position size and risk tier. Maintaining sufficient margin reduces liquidation risk, especially during periods of high market volatility.