Maintenance Margin

Maintenance margin is the minimum equity required to keep a leveraged position open. On Hex37 it is 1% of position notional for all instruments. If your margin balance (initial margin minus unrealized loss) drops to this level, the position is liquidated. Maintenance margin is the line where the liquidation engine acts; it is not a margin call you can fund.

Why maintenance margin exists

Without a maintenance margin requirement, a losing leveraged position could continue to lose money until it consumed more than the trader had posted, leaving the exchange with bad debt. Maintenance margin sets a buffer above zero, 1% of notional on Hex37, so that the platform can liquidate the position with a small cushion remaining for slippage and the liquidation fee. The 1% figure mirrors the maintenance margin schedules used by major crypto perpetual venues for small to mid-size positions; larger positions often see higher rates on real exchanges because the slippage required to close them is greater.

Initial margin vs maintenance margin

Initial margin is what you post to open the position. Maintenance margin is what you need to keep it open. At 10x leverage on a $10,000 position, you post $1,000 (10%) of initial margin. Your maintenance margin is 1% of notional, or $100. The position liquidates when your unrealized loss reaches $900, that is, when the price has moved roughly 9% against you. At 20x leverage the gap shrinks: $500 initial margin minus $100 maintenance margin equals $400 of room for loss, which is reached at roughly a 4% adverse move.

Cross margin and maintenance margin

Under isolated margin, each position has its own maintenance margin requirement based on its own notional. Under cross margin, all open positions share a single collateral pool, and the maintenance margin is calculated against the total notional of all positions. Cross margin lets you survive larger drawdowns on any single position by drawing on collateral from other positions, but the maintenance margin event becomes a cross-portfolio liquidation rather than a single-position liquidation. Hex37 supports both modes; isolated is recommended while learning.

What this means for stop placement

• Your stop-loss should fire before the maintenance margin level is reached. The position sizer on Hex37 displays both your stop price and your liquidation price; the gap between them is your safety buffer.
• On leveraged positions, calculate the percentage of price movement that takes you from entry to maintenance margin. At 10x that is roughly 9%; at 20x roughly 4.5%; at 5x roughly 18%.
• Maintenance margin is a feature of the exchange, not of your strategy. Treat it as a backstop; it should never be the active risk control.