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Product Mechanics

Margin Rules

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Margin is the amount of funds required to open and maintain a leveraged position.

On 6MM, margin is calculated in stablecoins and applies to U-margined perpetual contracts.

Understanding margin rules helps users manage risk and avoid unexpected liquidations.

Types of Margin

6MM uses two primary margin types:

Initial Margin

  • The minimum amount required to open a position
  • Depends on position size and selected leverage
  • Locked when the order is executed

Maintenance Margin

  • The minimum margin required to keep a position open
  • Lower than initial margin
  • If your margin balance falls below this level, liquidation may occur

Available Margin

Available margin is the portion of your Perpetual Account balance that can still be used.

It is affected by:

  • Open positions
  • Unrealized PnL
  • Trading fees
  • Funding payments

Only available margin can be used to open new positions or increase position size.

Margin Ratio

Margin ratio is a percentage-based risk indicator; maintenance margin is a required amount. They are different measures and should not be compared directly. Interpret the ratio using the platform’s definition, threshold direction and account or position scope. Check it together with equity, maintenance margin and current risk status.

Cross vs. Isolated Margin

Depending on partner configuration, 6MM may support:

Isolated Margin

  • Margin is assigned to a single position
  • Losses are limited to the margin allocated to that position

Cross Margin

  • All available margin in the Perpetual Account is shared across positions
  • Helps reduce liquidation risk but exposes the entire balance

Margin mode availability depends on the trading pair and partner setup.

Margin and Mark Price

Margin calculations on 6MM use the mark price instead of the last traded price.

This helps:

  • Prevent unnecessary liquidations
  • Reduce the impact of short-term price manipulation

What Happens When Margin Is Insufficient?

If the applicable margin requirements are no longer met, the system handles the account or position under its risk rules. It may issue warnings or restrictions, reduce positions partially, or close affected positions entirely. The sequence and result depend on the current risk state and platform rules.

Margin Best Practices (For Beginners)

  • Always keep extra margin available
  • Avoid using maximum leverage
  • Monitor unrealized PnL and margin ratio
  • Add margin early during adverse price movement

Summary

Margin rules on 6MM are designed to:

  • Protect users from excessive losses
  • Maintain market stability
  • Provide transparent, real-time risk indicators

Understanding and following margin rules is essential for safe perpetual contract trading.