In the digital contract market, users only need to pay a small amount of funds at a certain rate according to the contract price as a financial guarantee for the performance of the contract, and then they can participate in the trading of the futures contracts. This kind of fund is the digital contract margin.
Perpetual Contract adopts cross margin mode.
After the user opens a position, the risks and returns of all positions in the account will be combined and calculated. The margin required for the position will change with the latest transaction price.
Margin calculation
Position margin = (face value * amount)/leverage multiplier
Example: Buy and open 50 BTC contracts (the face value of the contract is 100USDT), the leverage is 20, then
Position margin = (100 * 50) / 20 = 250USDT
Margin Rate
Margin rate is a measure of the risk of user assets;
Margin rate = (account equity/occupied margin) * 100%-adjustment coefficient;
The lower the margin ratio, the higher the risk for the account. When margin rate is less than or equal to 0%, forced liquidation will be triggered.