BitMart Futures is a futures trading market, specifically a market for perpetual swaps, offered per the Terms and Conditions for BitMart Futures Market.
Below is the [Margin guide] for BitMart Futures:
BitMart applies a risk limit to all trading accounts in order to reduce the possibility of significant forced liquidation.
Risk limit is a kind of risk management mechanism used to limit the position-holding risk of traders. Under a trading environment with large price fluctuation, a single trader who uses high leverage to hold a large position is likely to cause heavy close-out loss. Once the margin amount is exhausted, the ADL system may be triggered and thus bring additional risks to other traders.
The mode of incremental risk limit will help avoid the occurrence of such a situation. Under such mode, the trader with a large position needs to pay a higher initial margin while the maximum available leverage is lower.
Dynamic Risk Limit
Every future has a basic risk limit and an incremental amount. Combining the requirements of basic maintenance and initial margin, these parameters are used to calculate the complete margin requirement for every position.
As the position increases, the requirements of maintenance margin and initial margin will also increase. The margin ratio will increase or decrease with the change of risk limit.
Risk limit level:
Risk limit level = (position value + untraded order value - basic risk limit) / incremental amount + 1
Incremental amount = basic risk limit * 0.5
Note: The risk limit level is rounded up to an integer.
The margin requirements for every perpetual swap are as follows:
Initial margin ratio: IMR = 1/leverage * risk limit level
Maintenance margin ratio: MMR = [(1/maximum allowable leverage)*0.5 ]*risk limit level
*The risk limit of perpetual swap can be directly viewed on the trading page.