Encyclopedia DeFi · Entry 342
Initial and maintenance margin: opening a position versus keeping it
In this article
At a glance
Key facts
Positive equity can still be insufficient
Take a hypothetical 10,000 current notional with a 10% initial requirement and a 6% maintenance requirement. Those requirements are 1,000 and 600 respectively. Equity of 550 is positive but below the 600 maintenance requirement.
These rates are invented for arithmetic. Actual requirements can depend on market, size, governance and account configuration; they are not universal dYdX parameters.
Requirements move with the account
If notional is price-dependent, maintenance also changes with price. Other positions affect cross-account calculations. This makes an entry-price percentage shortcut unreliable for predicting the exact liquidation point.
The threshold and the closing trade differ
The cited liquidation engine produces orders to match available liquidity using its fillable-price rules. Crossing the maintenance boundary does not guarantee a close at the oracle price or preservation of a particular residual balance. Penalties and market execution influence the outcome.
Direct answers
Questions people ask
If I cannot open another position, am I already liquidatable?
Not necessarily. Opening and maintenance tests differ. Read both requirements and current equity rather than treating an order rejection as proof of liquidation status.
Inspect the evidence
The answer and key facts have stable claim links. These records retain the scope and qualification when reused.
Initial margin is the requirement for opening or increasing exposure. Maintenance margin is the minimum equity requirement for keeping exposure open under the venue’s risk rules. An account can fall below maintenance while still having positive equity, so liquidation is not restricted to accounts that have already lost everything.
Scope: DeFi · data through 2026-10-02. Verification: verified · 2026-10-02T19:18:00.092Z.
Link to this claimOpening: Initial margin constrains new exposure.
Scope: DeFi · data through 2026-10-02. Verification: verified · 2026-10-02T19:18:00.092Z.
Link to this claimOngoing: Maintenance is evaluated against current account value.
Scope: DeFi · data through 2026-10-02. Verification: verified · 2026-10-02T19:18:00.092Z.
Link to this claimReduction: A liquidation can close part or all of a position.
Scope: DeFi · data through 2026-10-02. Verification: verified · 2026-10-02T19:18:00.092Z.
Link to this claimRevision history
- — First publication after primary-source research and separate automated verification.
Source register
Sources and references
Retrieval dates and locators are recorded individually.- Markets and margin parametersdYdX Foundation
Initial/maintenance margin definitions and cross versus isolated market scope.
Locator: Liquidity tiers; Market types · Version / scope: Documentation retrieved for the 2026-10-02 editorial scope; content hash recorded · Retrieved: 2026-10-02T18:53:21.108ZOpen source - Liquidations on dYdX ChaindYdX Operations Services
Distinguishes eligibility, order execution and account losses.
Locator: Margin; fillable price; liquidation · Version / scope: Documentation retrieved for the 2026-10-02 editorial scope; content hash recorded · Retrieved: 2026-10-02T18:53:20.755ZOpen source
Research and drafting use AI assistance. A separate automated review checks claims against primary sources; no external expert or named human review is implied. Publication, substantive editing, source retrieval and verification are recorded separately. This version was independently checked by an automated reviewer on 2 October 2026.
Editorial method and correctionsDegrees of Satoshi editorial project. “Initial and maintenance margin: opening a position versus keeping it.” Published 2026-10-02; updated 2026-10-02. https://degreesofsatoshi.com/encyclopedia/initial-vs-maintenance-margin/