Maintenance Margin is the minimum account value required to continue holding a position.
For perpetual contracts, the Maintenance Margin Base Value is 0.5% for BTC and 1% for ETH, EOS and XRP of the contract value when opening a position. It will increase or decrease accordingly as risk limit changes.
The isolated margin used for this position is:
Initial margin = 12,000/(8,000*50)
= 0.03 BTC
= 0.0075 BTC
This means that this position may have an unrealized loss of up to 0.0225 BTC (0.03 BTC - 0.0075 BTC) before the occurrence of liquidation. Critically, traders need to be constantly aware of the margin level on their positions. To find out more about how traders can better manage the liquidation risk on their positions, click on the following links to learn more about Isolated Margin, Auto Margin Replenishment and how it affects the liquidation price.