CoinEx adopts a tiered maintenance margin mechanism for risk control. This mechanism can help prevent the spillover effects of the forced liquidation of a large position and reduce the risk of auto-deleveraging (ADL) across the platform, limiting potential losses.

Simply put, the tiered maintenance margin establishes different maintenance margin ratios and maximum leverage based on position size. The larger the position, the lower the maximum leverage; conversely, the smaller the position, the higher the maximum leverage. This approach minimizes the risks associated with forced liquidation.

Coin-Margined Contract Margin Calculation

CoinEx's inverse contracts offer adjustable leverage options (1X-100X).

1. Adjusting Leverage

After successfully opening a position, you can switch between Cross Margin and Isolated Margin modes and adjust the leverage. However, if you have pending orders, you cannot switch margin modes or adjust leverage.

2. Impact of Adjusting Leverage

After the leverage adjustment, the system will recalculate the position margin required, which may lead to changes in the liquidation price. Traders should monitor price movements and assess risks accordingly.

3. Inverse Contract Maintenance Margin Ratio

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Inverse Contract Margin Calculation

1. Position Margin

Position Margin = Initial Margin + Increased Margin - Decreased Margin + Unrealized PNL + Settlement PNL

2. Frozen Margin

Frozen Margin refers to the initial margin and trading fees that need to be held when a pending order cannot be executed immediately.

3. Initial Margin

Initial Margin refers to the minimum amount of margin required to open or settle a position.

(1) Initial Margin = Settlement Value * Initial Margin Rate

(2) Initial Margin Rate = 1 / Leverage Ratio * 100%

(3) Settlement Value = Position Size * Settlement Price

Note: When Pyramiding Auto-Settlement is disabled, the settlement price equals the average entry price. For positions with Pyramiding Auto-Settlement enabled, the calculation of the settlement price can be found in the article What is Settlement Price.

4. Maintenance Margin

Maintenance Margin refers to the minimum amount of margin required to maintain the current position.

Maintenance Margin = (Position Size * Contract Face Value) / Mark Price * Maintenance Margin Rate

5. Available Margin

Available Margin refers to the balance available for opening new positions or adding to existing margins.

Available Margin = Transfer-in Assets - Transfer-out Assets + Realized PnL + Unrealized PnL - Position Margin - Frozen Margin