We are constantly working to refine and improve our trading services on Liquid. We have now introduced a new Liquid Margining Model, applied to both Cross and Isolated margin features.

What is the benefit to Liquid users?

Under the old margin model, the initial required margin (IRM) also acted as Maintenance Margin (MM), which resulted in forced liquidations when the IRM ( plus 10%) was breached.

Under the new model, forced liquidation happens when MM is breached. We believe the new model is greatly advantageous to our users, as it gives significantly more leeway when it comes to forced liquidations.

For instance, for Infinity 100X leverage, the required margin under the new model is 1% (100X) and the maintenance margin is 0.5%.

How does the new model work?

Learn more on how Liquid Margining Model applies to

  • Isolated Margin Liquidation Process: link

  • Cross Margin Liquidation Process: link

  • Liquid Infinity Step Limit: link

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