{"id":2105,"date":"2025-04-21T15:58:37","date_gmt":"2025-04-21T15:58:37","guid":{"rendered":"https:\/\/pi42.com\/blog\/?p=2105"},"modified":"2025-04-21T15:58:37","modified_gmt":"2025-04-21T15:58:37","slug":"pi42-maintenance-margin","status":"publish","type":"post","link":"https:\/\/pi42.com\/blog\/pi42-maintenance-margin\/","title":{"rendered":"Pi42 Maintenance Margin &amp; Liquidation Update"},"content":{"rendered":"\n<p>We&#8217;ve made a significant update to the<strong> Pi42 platform&#8217;s maintenance margin calculation process.<\/strong> This change is designed to improve margin accuracy and enhance your trading experience. Here&#8217;s everything you need to know.<\/p>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_76 ez-toc-wrap-left counter-hierarchy ez-toc-counter ez-toc-light-blue ez-toc-container-direction\">\n<label for=\"ez-toc-cssicon-toggle-item-69dfd99dd0e46\" class=\"ez-toc-cssicon-toggle-label\"><p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<span class=\"ez-toc-cssicon\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-69dfd99dd0e46\"  \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/pi42.com\/blog\/pi42-maintenance-margin\/#whats-changing\" >What\u2019s Changing?<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/pi42.com\/blog\/pi42-maintenance-margin\/#maintenance-margin-formula\" >Maintenance Margin Formula<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/pi42.com\/blog\/pi42-maintenance-margin\/#base-margin-calculation\" >Base Margin Calculation<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/pi42.com\/blog\/pi42-maintenance-margin\/#per-asset-margin\" >Per Asset Margin<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/pi42.com\/blog\/pi42-maintenance-margin\/#clarifying-margins\" >Clarifying Margins<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/pi42.com\/blog\/pi42-maintenance-margin\/#liquidation-price-calculation-on-pi42\" >Liquidation Price Calculation on Pi42<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/pi42.com\/blog\/pi42-maintenance-margin\/#1%ef%b8%8f%e2%83%a3-bankruptcy-price\" >1\ufe0f\u20e3 Bankruptcy Price<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/pi42.com\/blog\/pi42-maintenance-margin\/#2%ef%b8%8f%e2%83%a3-maintenance-margin-price\" >2\ufe0f\u20e3 Maintenance Margin Price<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/pi42.com\/blog\/pi42-maintenance-margin\/#3%ef%b8%8f%e2%83%a3-final-liquidation-price\" >3\ufe0f\u20e3 Final Liquidation Price<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-10\" href=\"https:\/\/pi42.com\/blog\/pi42-maintenance-margin\/#remaining-position-margin\" >Remaining Position Margin<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-11\" href=\"https:\/\/pi42.com\/blog\/pi42-maintenance-margin\/#how-the-liquidation-process-works\" >How the Liquidation Process Works<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-12\" href=\"https:\/\/pi42.com\/blog\/pi42-maintenance-margin\/#liquidation-risk-management-tips\" >Liquidation Risk Management Tips<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-13\" href=\"https:\/\/pi42.com\/blog\/pi42-maintenance-margin\/#impact-on-liquidation-price\" >Impact on Liquidation Price<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-14\" href=\"https:\/\/pi42.com\/blog\/pi42-maintenance-margin\/#key-takeaway\" >Key Takeaway:<\/a><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"whats-changing\"><\/span>What\u2019s Changing?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"maintenance-margin-formula\"><\/span>Maintenance Margin Formula<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>The <strong>maintenance margin<\/strong> is the amount you need to keep your position open. You can now calculate it using the following formula:<\/p>\n\n\n\n<p><strong>Maintenance Margin = (Base Margin * Maintenance Margin Percentage) \/ 100<\/strong><\/p>\n\n\n\n<div class=\"wp-block-buttons has-custom-font-size has-medium-font-size is-horizontal is-content-justification-center is-layout-flex wp-container-core-buttons-is-layout-9effcbe1 wp-block-buttons-is-layout-flex\" style=\"margin-top:0;margin-bottom:0;padding-top:0;padding-right:0;padding-bottom:0;padding-left:0\">\n<div class=\"wp-block-button has-custom-width wp-block-button__width-50 has-custom-font-size is-style-outline has-medium-font-size is-style-outline--1\"><a class=\"wp-block-button__link has-white-color has-midnight-gradient-background has-text-color has-background has-link-color has-border-color has-text-align-center wp-element-button\" href=\"https:\/\/pi42.com\/\" style=\"border-color:#8fb2ff;border-style:solid;border-width:3px;border-radius:18px;padding-top:0;padding-right:0;padding-bottom:0;padding-left:0\"><strong>Trade <\/strong>on<strong> Pi42<\/strong><\/a><\/div>\n<\/div>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"base-margin-calculation\"><\/span>Base Margin Calculation<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>The <strong>base margin<\/strong> is the minimum required margin to open a position. We&#8217;ve updated this calculation to ensure greater accuracy:<\/p>\n\n\n\n<p><strong>Base Margin = (Position Size \/ Leverage) * (1 + Buffer)<\/strong><\/p>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"per-asset-margin\"><\/span>Per Asset Margin<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>We calculate the margin for each asset by dividing the total maintenance margin by the quantity, then adjusting it based on position type.<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>LONG Positions<\/strong>: Multiplier factor is <code>1<\/code><\/li>\n\n\n\n<li><strong>SHORT Positions<\/strong>: Multiplier factor is <code>-1<\/code><\/li>\n<\/ul>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"clarifying-margins\"><\/span>Clarifying Margins<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Base Margin<\/strong> is used in the new calculations<\/li>\n\n\n\n<li><strong>Locked Margin<\/strong> is used in other margin-related functions<br>These are distinct and serve different purposes in margin management.<\/li>\n<\/ul>\n\n\n\n<div class=\"wp-block-buttons has-custom-font-size has-medium-font-size is-horizontal is-content-justification-center is-layout-flex wp-container-core-buttons-is-layout-9effcbe1 wp-block-buttons-is-layout-flex\" style=\"margin-top:0;margin-bottom:0;padding-top:0;padding-right:0;padding-bottom:0;padding-left:0\">\n<div class=\"wp-block-button has-custom-width wp-block-button__width-50 has-custom-font-size is-style-outline has-medium-font-size is-style-outline--2\"><a class=\"wp-block-button__link has-white-color has-midnight-gradient-background has-text-color has-background has-link-color has-border-color has-text-align-center wp-element-button\" href=\"https:\/\/pi42.com\/\" style=\"border-color:#8fb2ff;border-style:solid;border-width:3px;border-radius:18px;padding-top:0;padding-right:0;padding-bottom:0;padding-left:0\"><strong>Trade <\/strong>on<strong> Pi42<\/strong><\/a><\/div>\n<\/div>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"liquidation-price-calculation-on-pi42\"><\/span>Liquidation Price Calculation on Pi42<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Liquidation occurs when a position&#8217;s margin falls below the required levels. Here&#8217;s how Pi42 calculates the <strong>liquidation price<\/strong>:<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"1%ef%b8%8f%e2%83%a3-bankruptcy-price\"><\/span>1\ufe0f\u20e3 Bankruptcy Price<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p><strong>Bankruptcy Price = Entry Price &#8211; (Margin Amount \/ 1.01 \/ Position Quantity)<\/strong><\/p>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"2%ef%b8%8f%e2%83%a3-maintenance-margin-price\"><\/span>2\ufe0f\u20e3 Maintenance Margin Price<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p><strong>Maintenance Margin Price = (Maintenance Margin * Multiplier Factor) \/ Quantity<\/strong><\/p>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"3%ef%b8%8f%e2%83%a3-final-liquidation-price\"><\/span>3\ufe0f\u20e3 Final Liquidation Price<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p><strong>Liquidation Price = Maintenance Margin Price + Bankruptcy Price<\/strong><\/p>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"remaining-position-margin\"><\/span>Remaining Position Margin<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>A position is taken into consideration for liquidation when<\/p>\n\n\n\n<p><strong>Remaining Position Margin \u2264 Maintenance Margin<\/strong><\/p>\n\n\n\n<p>And the <span style=\"background-color: rgba(63, 63, 70, 0.2);\"><b>remaining position margin<\/b><\/span> is calculated as<\/p>\n\n\n\n<p><strong>Remaining Position Margin = Initial Margin &#8211; Unrealized Losses<\/strong><\/p>\n\n\n\n<div class=\"wp-block-buttons has-custom-font-size has-medium-font-size is-horizontal is-content-justification-center is-layout-flex wp-container-core-buttons-is-layout-9effcbe1 wp-block-buttons-is-layout-flex\" style=\"margin-top:0;margin-bottom:0;padding-top:0;padding-right:0;padding-bottom:0;padding-left:0\">\n<div class=\"wp-block-button has-custom-width wp-block-button__width-50 has-custom-font-size is-style-outline has-medium-font-size is-style-outline--3\"><a class=\"wp-block-button__link has-white-color has-midnight-gradient-background has-text-color has-background has-link-color has-border-color has-text-align-center wp-element-button\" href=\"https:\/\/pi42.com\/\" style=\"border-color:#8fb2ff;border-style:solid;border-width:3px;border-radius:18px;padding-top:0;padding-right:0;padding-bottom:0;padding-left:0\"><strong>Trade <\/strong>on<strong> Pi42<\/strong><\/a><\/div>\n<\/div>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"how-the-liquidation-process-works\"><\/span>How the Liquidation Process Works<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>When your position reaches the liquidation price:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Pi42 places a <strong>market order<\/strong> to close your position<\/li>\n\n\n\n<li>This happens when you <strong>can\u2019t meet the margin requirement<\/strong> due to losses<\/li>\n<\/ul>\n\n\n\n<p>During liquidation, Pi42 applies:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Standard taker fee<\/strong> (as per the contract)<\/li>\n\n\n\n<li><strong>Insurance clearance fee<\/strong> of <strong>0.50%<\/strong> (for all contracts)<\/li>\n<\/ul>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"liquidation-risk-management-tips\"><\/span>Liquidation Risk Management Tips<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>To help avoid liquidation on Pi42, you can:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Monitor your positions regularly, especially in volatile markets<\/li>\n\n\n\n<li>Add more margin to positions nearing liquidation<\/li>\n\n\n\n<li>Enable <strong>Auto Margin Top-up<\/strong> to automatically add funds from your available balance<\/li>\n\n\n\n<li>Choose <strong>leverage levels<\/strong> wisely based on your risk appetite<\/li>\n\n\n\n<li>Set <strong>stop-loss orders<\/strong> above your liquidation threshold<\/li>\n<\/ul>\n\n\n\n<div class=\"wp-block-buttons has-custom-font-size has-medium-font-size is-horizontal is-content-justification-center is-layout-flex wp-container-core-buttons-is-layout-9effcbe1 wp-block-buttons-is-layout-flex\" style=\"margin-top:0;margin-bottom:0;padding-top:0;padding-right:0;padding-bottom:0;padding-left:0\">\n<div class=\"wp-block-button has-custom-width wp-block-button__width-50 has-custom-font-size is-style-outline has-medium-font-size is-style-outline--4\"><a class=\"wp-block-button__link has-white-color has-midnight-gradient-background has-text-color has-background has-link-color has-border-color has-text-align-center wp-element-button\" href=\"https:\/\/pi42.com\/\" style=\"border-color:#8fb2ff;border-style:solid;border-width:3px;border-radius:18px;padding-top:0;padding-right:0;padding-bottom:0;padding-left:0\"><strong>Trade <\/strong>on<strong> Pi42<\/strong><\/a><\/div>\n<\/div>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"impact-on-liquidation-price\"><\/span>Impact on Liquidation Price<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>This update directly impacts the <strong>timing and value<\/strong> at which liquidation occurs.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"key-takeaway\"><\/span>Key Takeaway:<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Liquidation occurs when<\/strong>:<br><code>Remaining Position Margin \u2264 Maintenance Margin<\/code><\/li>\n\n\n\n<li>With the new formula, <strong>maintenance margin is now more accurate<\/strong>, which may lead to <strong>slightly higher or lower liquidation prices<\/strong>, depending on market conditions and position type.<\/li>\n<\/ul>\n\n\n\n<div class=\"wp-block-buttons has-custom-font-size has-medium-font-size is-horizontal is-content-justification-center is-layout-flex wp-container-core-buttons-is-layout-9effcbe1 wp-block-buttons-is-layout-flex\" style=\"margin-top:0;margin-bottom:0;padding-top:0;padding-right:0;padding-bottom:0;padding-left:0\">\n<div class=\"wp-block-button has-custom-width wp-block-button__width-50 has-custom-font-size is-style-outline has-medium-font-size is-style-outline--5\"><a class=\"wp-block-button__link has-white-color has-midnight-gradient-background has-text-color has-background has-link-color has-border-color has-text-align-center wp-element-button\" href=\"https:\/\/pi42.com\/\" style=\"border-color:#8fb2ff;border-style:solid;border-width:3px;border-radius:18px;padding-top:0;padding-right:0;padding-bottom:0;padding-left:0\"><strong>Trade <\/strong>on<strong> Pi42<\/strong><\/a><\/div>\n<\/div>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<p><strong>Have questions?<br><\/strong>Please feel free to contact our support team for assistance and clarification at any time.<br>We\u2019re here to ensure you have a smooth and informed trading experience.<\/p>\n\n\n\n<p><\/p>\n","protected":false},"excerpt":{"rendered":"<p>We&#8217;ve made a significant update to the Pi42 platform&#8217;s maintenance margin calculation process. This change is designed to improve margin accuracy and enhance your trading experience. Here&#8217;s everything you need to know. What\u2019s Changing? Maintenance Margin Formula The maintenance margin is the amount you need to keep your position open. You can now calculate it [&hellip;]<\/p>\n","protected":false},"author":11,"featured_media":2107,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"zakra_page_container_layout":"customizer","zakra_page_sidebar_layout":"customizer","zakra_remove_content_margin":false,"zakra_sidebar":"customizer","zakra_transparent_header":"customizer","zakra_logo":0,"zakra_main_header_style":"default","zakra_menu_item_color":"","zakra_menu_item_hover_color":"","zakra_menu_item_active_color":"","zakra_menu_active_style":"","zakra_page_header":true,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[17],"tags":[6,12,261],"class_list":["post-2105","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-pi42-product-updates","tag-crypto-futures","tag-indian-crypto-exchange","tag-maintenance-margin"],"jetpack_featured_media_url":"https:\/\/pi42.com\/blog\/wp-content\/uploads\/2025\/04\/blog-cover.png","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/pi42.com\/blog\/wp-json\/wp\/v2\/posts\/2105","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/pi42.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/pi42.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/pi42.com\/blog\/wp-json\/wp\/v2\/users\/11"}],"replies":[{"embeddable":true,"href":"https:\/\/pi42.com\/blog\/wp-json\/wp\/v2\/comments?post=2105"}],"version-history":[{"count":1,"href":"https:\/\/pi42.com\/blog\/wp-json\/wp\/v2\/posts\/2105\/revisions"}],"predecessor-version":[{"id":2106,"href":"https:\/\/pi42.com\/blog\/wp-json\/wp\/v2\/posts\/2105\/revisions\/2106"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/pi42.com\/blog\/wp-json\/wp\/v2\/media\/2107"}],"wp:attachment":[{"href":"https:\/\/pi42.com\/blog\/wp-json\/wp\/v2\/media?parent=2105"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/pi42.com\/blog\/wp-json\/wp\/v2\/categories?post=2105"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/pi42.com\/blog\/wp-json\/wp\/v2\/tags?post=2105"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}