# Initial and maintenance margin: opening a position versus keeping it

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.

Evidence: [Markets and margin parameters](https://docs.dydx.community/dydx/modules/governance/governance-adjustable-parameters/markets); [Liquidations on dYdX Chain](https://help.dydx.trade/en/articles/166991-liquidations-on-dydx-chain)

Canonical: https://degreesofsatoshi.com/encyclopedia/initial-vs-maintenance-margin/
Published: 2026-10-02
Substantively modified: 2026-10-02
Independently verified by an automated reviewer: 2026-10-02T19:18:00.092Z
Data current through: 2026-10-02

AI-assisted research and drafting with a separate automated source-verification pass; no external expert or named human review is implied.

## Key facts

- **Opening:** Initial margin constrains new exposure. ([Markets and margin parameters](https://docs.dydx.community/dydx/modules/governance/governance-adjustable-parameters/markets))
- **Ongoing:** Maintenance is evaluated against current account value. ([Liquidations on dYdX Chain](https://help.dydx.trade/en/articles/166991-liquidations-on-dydx-chain))
- **Reduction:** A liquidation can close part or all of a position. ([Liquidations on dYdX Chain](https://help.dydx.trade/en/articles/166991-liquidations-on-dydx-chain))

## 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.

Evidence: [Markets and margin parameters](https://docs.dydx.community/dydx/modules/governance/governance-adjustable-parameters/markets); [Liquidations on dYdX Chain](https://help.dydx.trade/en/articles/166991-liquidations-on-dydx-chain)

## 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.

Evidence: [Liquidations on dYdX Chain](https://help.dydx.trade/en/articles/166991-liquidations-on-dydx-chain)

## 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.

Evidence: [Liquidations on dYdX Chain](https://help.dydx.trade/en/articles/166991-liquidations-on-dydx-chain)

## Questions

### 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.

Evidence: [Markets and margin parameters](https://docs.dydx.community/dydx/modules/governance/governance-adjustable-parameters/markets); [Liquidations on dYdX Chain](https://help.dydx.trade/en/articles/166991-liquidations-on-dydx-chain)

## Claims and scope

### initial-vs-maintenance-margin-quick-answer

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: {"collection":"defi","dataAsOf":"2026-10-02","blockHeight":null}

### initial-vs-maintenance-margin-fact-opening

Opening: Initial margin constrains new exposure.

Scope: {"collection":"defi","dataAsOf":"2026-10-02","blockHeight":null}

### initial-vs-maintenance-margin-fact-ongoing

Ongoing: Maintenance is evaluated against current account value.

Scope: {"collection":"defi","dataAsOf":"2026-10-02","blockHeight":null}

### initial-vs-maintenance-margin-fact-reduction

Reduction: A liquidation can close part or all of a position.

Scope: {"collection":"defi","dataAsOf":"2026-10-02","blockHeight":null}

## Sources

- [Markets and margin parameters](https://docs.dydx.community/dydx/modules/governance/governance-adjustable-parameters/markets) — dYdX Foundation. Initial/maintenance margin definitions and cross versus isolated market scope. Locator: Liquidity tiers; Market types. Retrieved: 2026-10-02T18:53:21.108Z.
- [Liquidations on dYdX Chain](https://help.dydx.trade/en/articles/166991-liquidations-on-dydx-chain) — dYdX Operations Services. Distinguishes eligibility, order execution and account losses. Locator: Margin; fillable price; liquidation. Retrieved: 2026-10-02T18:53:20.755Z.

## Revision history

- 2026-10-02: First publication after primary-source research and separate automated verification.

## Cite this entry

Degrees 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/