The concept of dynamic leverage is used for Bybit's Risk Limit. This means the larger the contract value traders hold, the lower the maximum leverage allowed. In other words, the initial margin requirement incrementally goes up by a fixed percentage at every specific increase in contract value level. Please note that the maintenance margin base rate is 0.5% for BTC and 1% for ETH, EOS and XRP, and the margin requirements will increase or decrease accordingly as risk limit changes.
Risk limit is a risk management measure to limit the risk exposure of traders. A large position with high leverage may cause huge contract losses when liquidated in a highly volatile market. Contract losses are created when the position is liquidated beneath the bankruptcy price and coupled with a depleted insurance fund that is insufficient to fully absorb the losses, Auto deleveraging (ADL) system will be triggered. Traders with a large position pose an increased risk of ADL to other traders on the exchange. To minimize the possibility of ADL occurring, Bybit imposes a risk limit on all trading accounts according to their positional contract value held.
As the position contract value increases, the maintenance margin and initial margin requirements will also increase. Users can choose to increase or decrease the risk limit through the Asset Overview panel. The default risk limit level on Bybit will always start from the lowest risk limit level.
Bybit will perform a laddered liquidation process for traders using higher risk limits, and will automatically reduce the level of maintenance margin by attempting to reduce the risk limit levels to the lowest possible level to avoid an immediate full liquidation of the trader’s position. For more details on the Liquidation process, please click here.
Risk Limit Table：
|
Contracts |
Risk Limit Base Value |
Risk Limit Increment |
Maintenance Margin Base Rate |
Maintenance Margin Increment at every level |
Initial Margin Base Rate |
Initial Margin Increment at every level |
| BTCUSD | 150BTC | 150BTC | 0.5% | 0.5% | 1% | 0.5% |
| ETHUSD | 3000ETH | 3000ETH | 1% | 0.5% | 2% | 1% |
| EOSUSD | 50000EOS | 50000EOS | 1% | 0.5% | 2% | 1% |
| XRPUSD | 750000XRP | 750000XRP | 1% | 0.5% | 2% | 1% |
Formula：
| Term | Formula | Eg: ETHUSD（Total Position Value 4000 ETH, hence limit needs to increase by 1 time） |
| New Risk Limit（RL） | RL Base value+ （Number of incremental *RL incremental value） | 3000 + （1*3000）= 6000 ETH |
| New Maintenance Margin（MM） % | MM Base rate + （Number of incremental*MM incremental rate） | 1% + （1*0.5%）= 1.5% |
| New Initial Margin （IM） % | IM Base rate + （Number of incremental*IM incremental rate） | 2% + （1*1%）= 3% |
| New Maintenance Margin Amount | New MM%* Total Position Value | 1.5%*4000 = 60 ETH |
For more details, please refer to the table below.
Risk Limit for BTCUSD
| Position Value | Maintenance Margin | Initial Margin | Max Leverage |
| 150 BTC | 0.5% | 1.00% | 100 |
| 300 BTC | 1.0% | 1.50% | 66 |
| 450 BTC | 1.5% | 2.00% | 50 |
| 600 BTC | 2.0% | 2.50% | 40 |
| 750 BTC | 2.5% | 3.00% | 33 |
| 900 BTC | 3.0% | 3.50% | 28 |
| 1050 BTC | 3.5% | 4.00% | 25 |
| 1200 BTC | 4.0% | 4.50% | 22 |
| 1350 BTC | 4.5% | 5.00% | 20 |
| 1500 BTC | 5.0% | 5.50% | 18 |
Risk Limit for ETHUSD
| Position Value | Maintenance Margin | Initial Margin | Max Leverage |
| 3000 ETH | 1.0% | 2.00% | 50 |
| 6000 ETH | 1.5% | 3.00% | 33 |
| 9000 ETH | 2.0% | 4.00% | 25 |
| 12000 ETH | 2.5% | 5.00% | 20 |
| 15000 ETH | 3.0% | 6.00% | 17 |
| 18000 ETH | 3.5% | 7.00% | 14 |
| 21000 ETH | 4.0% | 8.00% | 13 |
| 24000 ETH | 4.5% | 9.00% | 11 |
| 27000 ETH | 5.0% | 10.00% | 10 |
| 30000 ETH | 5.5% | 11.00% | 9 |
Risk Limit for EOSUSD
| Position Value | Maintenance Margin | Initial Margin | Max Leverage |
| 50000 EOS | 1.0% | 2.00% | 50 |
| 100000 EOS | 1.5% | 3.00% | 33 |
| 150000 EOS | 2.0% | 4.00% | 25 |
| 200000 EOS | 2.5% | 5.00% | 20 |
| 250000 EOS | 3.0% | 6.00% | 17 |
| 300000 EOS | 3.5% | 7.00% | 14 |
| 350000 EOS | 4.0% | 8.00% | 13 |
| 400000 EOS | 4.5% | 9.00% | 11 |
| 450000 EOS | 5.0% | 10.00% | 10 |
| 500000 EOS | 5.5% | 11.00% | 9 |
Risk Limit for XRPUSD
| Position Value | Maintenance Margin | Initial Margin | Max Leverage |
| 750000 XRP | 1.0% | 2.00% | 50 |
| 1500000 XRP | 1.5% | 3.00% | 33 |
| 2250000 XRP | 2.0% | 4.00% | 25 |
| 3000000 XRP | 2.5% | 5.00% | 20 |
| 3750000 XRP | 3.0% | 6.00% | 17 |
| 4500000 XRP | 3.5% | 7.00% | 14 |
| 5250000 XRP | 4.0% | 8.00% | 13 |
| 6000000 XRP | 4.5% | 9.00% | 11 |
| 6750000 XRP | 5.0% | 10.00% | 10 |
| 7500000 XRP | 5.5% | 11.00% | 9 |