Adjust Position Margin

In the isolated mode, the following methods can be used to adjust the position margin.

Automatic margin call

Auto-add margin is a feature that allows traders to automatically add margin to their existing positions to avoid forced liquidation. Once the Auto-add margin feature is activated, whenever your margin level approaches the maintenance margin level, DeepCoin will use your available balance to replenish the margin. The amount added is equal to the initial margin of your current position. If your available balance is less than the required amount to reach the initial margin, the Auto-add margin will fail. After the margin is added, you will notice that the liquidation price moves further away from the mark price.

When Auto-add margin is enabled, the minimum leverage that can be used for the position is 1x. If a position is already using 1x leverage, even if there is an available balance, no additional margin will be added.

Manual adjustment of margin
Traders are allowed to increase/decrease positions margin under the mode of isolated margin.

After increasing the position margin, the leverage of opening a position and the leverage of the order area will not be affected. The liquidation price will be recalculated based on the new position margin. After reducing the position margin, the position margin must not be less than (initial margin + estimated margin for closing positions).

Note: Automatic margin call and manual margin adjustment will not affect leverage

Adjust position leverage
Isolated position: margin required to open a position = face value * contract size * average price of opening a position/leverage;

Increase or decrease the corresponding used margin when adjusting leverage:

(1) Leverage can be adjusted to a larger amount

Maximum leverage x=min {system maximum multiple, If{unrealized profit and loss＜0, -0.5* open interest *contract face value/(average position price*unrealized profit and loss),9999} };
Note: Consider the situation that the loss cannot be adjusted to a certain threshold:
Unrealized profit and loss ≥- open interest *contract face value/(average position price*leverage)*50%

(2) Leverage can be adjusted to a smaller amount
Minimum leverage x = open interest * contract face value / (average open position price * (used margin + usable margin))

Deepcoin perpetual contracts provide the function of adjusting position leverage. When the user wants to increase the leverage, the system detects that the adjusted leverage is less than the maximum leverage of the current contract value, and the adjustment is successful. After the adjustment, the margin required to open the current position will be reduced.
When the user lowers the leverage, the margin required to hold the position will increase. When the system detects that there is enough available balance in the account to add, the position leverage can be adjusted successfully.