Margin Sensitivity

Margin sensitivity refers to how quickly and significantly a trader's margin requirements change in response to market movements. High sensitivity means that even small price changes can trigger a margin call or liquidation.

This is common in highly volatile assets or high-leverage environments. Traders must understand the sensitivity of their positions to manage their risk effectively.

It is a measure of the "tightness" of the margin requirements. Protocols with high margin sensitivity provide more protection to the system but increase the risk of forced liquidation for the trader.