Reduction in Initial and Maintenance Margin for ETHUSD

BitMEX

On 14 May 2021 at 06:00 UTC, we reduced the Base Initial Margin and Base Maintenance Margin requirements for our ETHUSD quanto swap. The current Base Initial Margin and Base Maintenance Margin requirements for our products can be found here.

These changes are a part of our ongoing efforts to bring our users an even better trading experience. 

The affected contracts and their Base Margin requirements are shown in the table below.

Contract*

Current Base Maintenance Margin

Base Maintenance Margin from 14 May

Current Base Initial Margin

Base Initial Margin from 14 May 

ETHUSD

0.70%

0.50%

2.00%

1.00%

Impact of these changes (ETHUSD quanto swap)

For traders on the Base Risk Limit (below 75 XBT notional for ETHUSD):

  • Initial Margin requirements will reduce, so Bankruptcy Price moves closer to Average Entry Price and Maximum Leverage available will increase.
  • Maintenance Margin requirements will reduce, so Liquidation Price will move closer to Bankruptcy Price, and the amount of Maintenance Margin lost in the event of liquidation will reduce.
  • The difference between Initial Margin and Maintenance Margin will decrease, so Liquidation Price will move closer to Average Entry Price.

For traders above the Base Risk Limit (above 75 XBT notional for ETHUSD):

  • Initial Margin requirements will reduce (Initial Margin = Base Initial Margin + Step x Base Maintenance Margin) so Bankruptcy Price moves closer to Average Entry Price, and Maximum Leverage available will increase.
  • Maintenance Margin requirements will reduce so Liquidation Price will move closer to Bankruptcy Price, and the amount of Maintenance Margin lost in the event of liquidation will reduce.
  • The difference between Initial Margin and Maintenance Margin will decrease, so Liquidation Price will move closer to Average Entry Price.

Please note that the cap on the absolute Funding Rate will change in line with its definition as 75% x (Initial Margin – Maintenance Margin). The cap on Funding Rate changes between Funding Intervals (75% of Maintenance Margin) will also reduce. Please see the Perpetual Swap Contracts Guide for more information on these definitions.

Contract

Prev. Funding Rate Cap

New Funding Rate Cap

Prev. Funding Rate Delta Cap

New Funding Rate Delta Cap

ETHUSD

0.975%

0.3750%

0.525%

0.375%

If you have any questions, please contact Support.