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Initial Margin (IM)

Initial Margin is the amount of collateral required to open a position. It is calculated as a percentage of the position’s notional value. For example, at 10% IM (10× leverage), opening a 10 BTC notional position requires 1 BTC of collateral. Once posted, this initial margin is dedicated to that position. Higher leverage means lower IM% and vice versa. Maximum leverage is 10×, so minimum IM is 10% of position size.

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Maintenance Margin (MM)

Maintenance Margin is the minimum collateral required to keep a position open. On Roxom, maintenance margin is set as a percentage of position notional as well. Maintenance margin is 50% of the initial margin requirement. In practical terms, with 10% initial margin, maintenance is 5% of notional. Using the earlier example, for a 10 BTC position that required 1 BTC of Initial Margin, the maintenance requirement would be 0.5 BTC. If losses cause the account equity backing the position to drop such that equity equals the maintenance requirement, the position will be taken for liquidation by the engine (see Liquidation Mechanics). In other words, when Margin Ratio = 100%, the position can no longer be sustained.