Maintenance Margin and Liquidation Guide

To ensure system stability and protect user assets, AEGET outlines the rules regarding maintenance margin and forced liquidation. Users are advised to fully understand these mechanisms before engaging in leveraged trading and apply appropriate risk management strategies.

1. What is Maintenance Margin?

The maintenance margin is the minimum amount of margin that must be maintained while holding a position. If the margin in the account falls below this level, the system may initiate forced liquidation to prevent the account balance from becoming negative.

Liquidation price calculation (USDT-margined contracts):

• Isolated Margin Mode (affects individual positions only):
  - Long: Liquidation Price = (Position Value - (Position Margin - Maintenance Margin - Fees)) / Position Size
  - Short: Liquidation Price = (Position Value + (Position Margin - Maintenance Margin - Fees)) / Position Size

• Cross Margin Mode (affects the entire futures account):
  - Long: Liquidation Price = (Position Value - (Account Balance - Maintenance Margin - Fees)) / Position Size
  - Short: Liquidation Price = (Position Value + (Account Balance - Maintenance Margin - Fees)) / Position Size

2. What is Forced Liquidation?

Forced liquidation occurs when the margin in a user’s account falls below the required maintenance margin. The system will automatically close the position to prevent further losses.

• Long Position: Triggered when the mark price ≤ liquidation price;
• Short Position: Triggered when the mark price ≥ liquidation price.

Key factors affecting liquidation:

• Maintenance Margin Rate: Varies depending on the position size and leverage applied;
• Market Volatility: High volatility can accelerate liquidation.

3. How to Reduce Liquidation Risk?

1. Monitor market conditions closely, especially during volatile periods;
2. Allocate margin appropriately and maintain adequate reserves to avoid over-leverage;
3. Use risk control tools such as stop-loss orders, isolated margin mode, and leverage adjustments.

4. Special Notes

• Maintenance margin will not be returned after liquidation, as it is used to prevent negative balances;
• Liquidation price may deviate from estimated value during extreme market conditions;
• If you have questions, please contact AEGET customer support for assistance.