Introduction

This article explains the difference between Initial Margin and Maintenance Margin on Coinlocally Futures. These two margin requirements determine how much collateral you need to open a position and how much you must maintain to keep it open. Understanding both helps you manage leverage and avoid liquidation.

Initial Margin

Initial Margin is the collateral required to open a leveraged position.

It depends directly on the leverage you choose:

• Higher leverage → Lower initial margin
• Lower leverage → Higher initial margin

For USDT‑margined contracts:

Initial Margin = Order Value × Initial Margin Rate

(The margin rate changes based on your selected leverage.)

Initial Margin is the amount you commit at the moment you open your position.

Maintenance Margin

Maintenance Margin is the minimum margin required to keep your position open.

If your margin falls below this level, your position becomes eligible for liquidation.

Key points:

• Maintenance Margin adjusts based on your risk limit tier.
• All traders start at the lowest maintenance margin tier by default.
• Liquidation occurs when the isolated margin is lower than the maintenance margin.
• On Coinlocally, Maintenance Margin is less than half of the Initial Margin, which is more favorable than most exchanges.

Maintenance Margin directly affects your liquidation price, so monitoring it is essential.

Additional notes

• You can view all leverage tiers and margin brackets here:

https://futures.coinlocally.com/en_US/futuresData

• Maintenance Margin changes dynamically with market price and your account balance.
• Keeping your margin above the maintenance level helps avoid forced liquidation.

Common Issues

• Using high leverage without understanding margin requirements.
• Confusing Initial Margin (to open a position) with Maintenance Margin (to keep it open).
• Ignoring liquidation risk when margin drops close to the maintenance level.

Feeling lost?

If you're unsure how margin works or how to manage your risk, our support team is available 24/7 to guide you step by step.

Updated on: 01/18/2026