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When futures positions share collateral, calculate risk for the venue-defined margin pool—not by treating each position as if it had a separate wallet. Work out which collateral and profit-and-loss count, compare the pool’s eligible equity with its aggregate maintenance requirements and applicable fees, and use the venue’s own risk ratio and price basis. There is no universal formula: account mode, settlement asset, contract and exchange rules all matter.
What changes when positions share collateral?
With cross margin, eligible positions can draw on the same account or asset-specific pool. A loss on one position can reduce the equity protecting the others; a gain may help only if the venue recognizes that position’s PnL as available to the same pool. The scope of sharing depends on the exchange, account mode and settlement currency.
That means a position’s displayed estimated liquidation price is not necessarily independent of other positions. Bybit’s help-center search excerpt gives an example involving multiple positions using the same USDT asset as cross-margin collateral: as the losing position’s unrealized loss increases, the profitable position’s displayed liquidation price moves closer to Mark Price. The excerpt’s formula is venue-specific, and the direct page provided little readable detail, so verify current Bybit rules rather than applying that formula elsewhere.
How to calculate risk for a shared pool
The practical calculation is a comparison between eligible pool equity and the total requirements the venue applies to that pool. The following workflow identifies the inputs; it is not a substitute for the exchange’s account-specific formula.
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Identify the pool
Record the exchange, product (perpetual or expiry future), cross or isolated margin setting, one-way or hedge mode, settlement asset and collateral assets. Confirm which positions and orders actually share a pool. For example, OKX’s single-currency futures cross-margin rules group positions settled in the same crypto; that does not establish how a different OKX account mode or another exchange groups risk.
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Collect the live position and account inputs
For every eligible position, note its contract type, settlement asset, direction, quantity or contract count, multiplier or face value, average entry price, current Mark Price and unrealized PnL. Also record eligible account balances, the venue’s collateral valuation, maintenance-margin tier, liquidation-fee schedule and any open orders that reserve margin or add order loss. Include liabilities, accrued interest, funding or other deductions only where the venue’s rules include them.
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Contract specifications matter: OKX’s rules distinguish crypto-margined from USDT-margined contracts and say cross-margin initial margin varies with Mark Price. A flat maintenance rate or a formula remembered from another product can therefore misstate the risk.
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Calculate eligible equity
As a conceptual ledger, think of pool equity as eligible collateral value plus eligible realized PnL plus eligible unrealized PnL, minus liabilities and other venue-defined deductions. This is a checklist, not a universal exchange formula. Binance describes its liquidation collateral as initial collateral plus realized PnL and unrealized PnL. OKX’s single-currency cross-margin guide defines equity using trading-account balance, cross-margin PnL and other listed components; its free-margin calculation also subtracts amounts in use. Do not count every account asset or every displayed profit unless the venue says it belongs in this calculation.
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Aggregate maintenance requirements and fees
Calculate each applicable position’s maintenance margin using its contract rules and current risk tier, then total the requirements for the pool. Add liquidation fees and open-order requirements or deductions as specified by the venue. OKX’s cross-margin rules include maintenance margin and liquidation fees in its maintenance-margin ratio and can account for open orders.
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Apply the venue’s actual trigger
A useful conceptual comparison is eligible equity divided by aggregate maintenance margin plus applicable liquidation fees: more equity relative to requirements generally means more room before a trigger. But exchanges may define the ratio differently, subtract different items or display the inverse. Use the exact ratio and trigger stated for your account rather than treating this conceptual expression as the exchange formula.
As platform-specific examples, Binance’s Nigeria help-center page describes liquidation when collateral falls below maintenance margin and says its margin ratio reaches 100%; it recommends keeping the ratio below 80%. The cited OKX single-currency guide describes a 100% trigger under its specified cross-margin conditions and a 300% pre-alert parameter that OKX reserves the right to adjust. These are not universal thresholds or general safety targets. The OKX UK page cited for these rules carries a ©2024 footer; check the current rules for your product and region.
Why a displayed liquidation price can mislead
Some venues publish a per-position estimate even when the actual risk is managed at the account or pool level. OKX says an estimated liquidation price may not be calculable for some mixed-underlying or mixed-product cross-margin combinations. Its described liquidation process can cancel orders and, if the maintenance-margin ratio remains at or below the specified threshold, partially liquidate positions in stages, with positions ranked according to business line and liquidity.
Price basis also matters. Binance says liquidation prices and unrealized PnL are calculated using Mark Price rather than Last Price. In a volatile market, Mark Price can move past an earlier displayed estimate before a liquidation order executes, so the displayed price is not a guaranteed execution price. Check which price your venue uses for its trigger and for collateral conversions.
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Recalculate both equity and maintenance requirements under plausible changes. A scenario that changes only one position’s price may miss correlated losses, collateral depreciation or additional order exposure.
| Scenario | What to update | What it reveals |
|---|---|---|
| One position loses while another is unchanged | Recalculate the losing position’s unrealized PnL and pool equity; update maintenance requirements if the venue’s tier or Mark Price basis changes. | How a loss in one position affects the equity protecting the rest of the shared pool. |
| Correlated positions lose together | Recalculate the PnL of every affected position at the scenario prices, then aggregate the results. | Whether several positions can draw down the same pool at once. |
| Collateral value falls | Revalue each collateral asset using the venue’s applicable conversion price and any haircut. | Whether the collateral itself can weaken while position losses rise. |
| Open orders increase exposure or reserve margin | Apply the venue’s order-margin, order-loss and fee treatment. | Whether orders reduce available equity or increase the pool’s requirements before they fill. |
Do not assume that one dollar of displayed unrealized profit equals one dollar of usable collateral. The venue may limit which profits or assets count, or apply collateral haircuts. Exact treatment depends on the chosen account and contract rules.
How to compare venue rules
Before relying on any liquidation estimate, check these differences in the exchange’s documentation for your region and account:
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- Collateral grouping: whether risk is isolated by position, grouped by settlement asset, shared across assets or handled through portfolio margin.
- PnL recognition: which positions’ unrealized PnL counts, whether positive PnL is available, and whether positions must settle in the same currency to offset one another.
- Price basis and valuation: the Mark Price or other prices used for positions and collateral, plus any conversion rules or haircuts.
- Requirements: maintenance tiers, contract multipliers, liquidation fees, order margin and other deductions.
- Risk-engine sequence: whether orders are canceled, positions are partially liquidated, and how positions are selected.
- Account mode: cross versus isolated, and any effects of one-way versus hedge mode.
For the named examples, OKX’s “Futures margin calculation rules” page is a Singapore help-center page, and “Futures mode: cross margin trading” is a UK help-center page; product availability and rules may differ by region. Binance’s “Binance Futures Liquidation Protocols” page is on a Nigeria help-center path. Confirm the current rules for your own account rather than assuming a regional help page governs every account.
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