Automatic margin call in isolated margin mode

Automatic margin call in isolated margin mode

This article aims to help users better understand the automatic margin call function in isolated margin mode. Bitget offers two margin modes: cross margin mode and isolated margin mode. Cross margin mode is the default margin mode for Bitget, and the automatic margin call function is only available in the isolated margin mode.

Automatic margin call helps users to avoid liquidation by promptly topping up the required margin for a position in isolated mode. Once enabled, the required margin to avoid liquidation will be transferred to the position from your available margin.

The automatic margin call amount corresponds to the additional margin needed for the respective position. If your margin is less than the margin call amount, the entire available balance will be transferred to the position’s margin.

Users have the option to enable or disable the automatic margin call function in Positions.

Example: How does automatic margin call work?

Suppose a user has an available balance of 600 USDT, and the current BTC price stands at 27,249.5 USDT. The user opens a long position of 0.1 btcusdT with 10X leverage, requiring an initial margin of 272.495 USDT. The liquidation price is calculated to be 24,637.9 USDT, and the available balance is 327.505 USDT.

When the m ark price falls below the liquidation price of 24,637.9 USDT, an automatic margin call is triggered to prevent the position from being liquidated. As a result, 272.495 USDT is being added to the position's margin, bringing the available balance to 55.01 USDT. Consequently, the new liquidation price is 21,900.4 USDT, and the initial margin for this position is 544.99 USDT.

In the event that the price of BTCUSDT continues to decline and falls below the liquidation price of 21,900.4 USDT, automatic margin call will be triggered again. This time, only 55.01 USDT is left in the available balance, which will be added to the position’s margin and bringing the liquidation price to 21,347.7 USDT.

If the balance in the account is depleted, the position will ultimately be liquidated when the price falls below 21,347.7 USDT, as automatic margin call is unable to be triggered.

Note: When liquidation is triggered, the system will first cancel all open orders to release more available margin in order to avoid liquidation.

FAQ

1. Which products is the automatic margin call function available for?

• It is available for USDT- M futures, Coin-M futures, and USDC-M futures.

2. What are the special scenarios for automatic margin calls?

• When automatic margin call is enabled, the minimum leverage that can be used for a position is 1X. If a position is already using 1X leverage, the automatic margin call will not be triggered even if there is available balance.

• In extreme volatile market conditions, if the risk control system detects that the user have added all available funds to the isolated margin and the position is still at the risk of liquidation, the system will refrain from adding more margin to maximize the protection of the user’s assets.

3. What is the difference between automatic margin call and cross margin mode?

• Automatic margin call is calculated based on the position's margin to determine the liquidation price. It is only triggered when the mark price reaches the liquidation price. When triggered, the system will transfer more margin to the position and the liquidation price is recalculated. In cross margin mode, the liquidation price is calculated based on the entire available balance, and the margin adjusts dynamically in response to changes in the mark price.