Leverage and Margin

Risk limit is a risk mechanism designed to prevent significant impacts on the contract market price caused by large position liquidations in the market.

Initial Margin: The minimum amount required when opening a position. Initial Margin = Position Value / Leverage

Maintenance Margin: The minimum amount required to keep your position open. It is calculated using a tiered approach based on the position's risk limit tier. The system first calculates it using the maintenance margin ratio (MMR) of the lowest tier, applying the next tier's MMR only to the portion exceeding the previous limit. In hedge mode, the calculation is based on the MMR of the higher-value position.

Gate will implement additional measures to maintain market stability during abnormal price fluctuations and extreme market conditions, including but not limited to:

1. Adjusting the max leverage.

2. Adjusting risk limits.

3. Adjusting the MMR for the current tier.