- Position margin in isolated margin mode
Isolated margin mode means the position margin is independent of the trader's account balance. If a position is liquidated, the trader will only lose the position margin (excluding funding fees).
Position margin (isolated margin mode) = Initial margin + Estimated trading fees for closing positions.
Auto-add margin in isolated margin mode
When funding fees are charged at each settlement time (00:00 UTC, 08:00 UTC, 16:00 UTC), they are deducted from the position margin. As a result, the liquidation price moves closer to the mark price, increasing the risk of liquidation.
To reduce liquidation risk, traders may deposit funds, convert assets, add position margin, or cancel open orders to release order margin to increase available balance. The process of auto-add margin may vary depending on the contract type and trading scenario.
- Position margin in cross margin mode
Cross margin mode uses all available balance of the corresponding asset as margin to support open positions and reduce the risk of liquidation. Since available balance is shared to cover unrealized PnL, the margin calculation differs from that in the isolated margin mode.
Position margin (cross margin mode) = Futures account balance + ∑ Unrealized PnL of cross margin positions