Maintenance Margin Calls

Maintenance Margin Calls are the specific notifications or automated triggers that occur when a trader's account equity drops to the maintenance margin level. Unlike initial margin, which is required to open a position, the maintenance margin must be kept at all times to keep the position open.

If the equity falls below this, the trader must act immediately to restore the balance, or the position will be subject to liquidation. These calls are a vital part of the risk management cycle, providing a clear signal that the position is nearing its limit.

In decentralized systems, these calls are often transparent and visible on the protocol's interface, allowing users to see exactly how much they need to deposit to avoid liquidation. The efficiency and reliability of these calls are essential for maintaining trust and stability in the system.

They bridge the gap between user control and protocol safety, giving users the chance to manage their risk before the automated liquidation engine takes over.