Today, 14 April 2020, BitMEX announced it has lowered the Base Maintenance Margin requirements for ETH and XBT series for a trial period that is to begin on the 17 Apr 2020.
A release by BitMEX indicates that despite the changes, the Base Initial Margin Requirements will remain as they are.
The adjustment is made to give users a better trading experience in a bid to enable outstanding feedbacks from them. The affected contracts include XBTUSD, XBTM20, XBTU20, ETHUSD, and ETHM20.
The Initial Margin requirements remained unchanged for those with Base Risk Limit, that’s below 200 XBT notional for XBTUSD and 50 XBT for other contracts. This denotes that the Maximum Leverage and Bankruptcy Price are not changed.
Note that the Maintenance Margin requirements will be reduced, indicating that the Liquidation Price is going to be very close to Bankruptcy Price, with the amount of Maintenance Margin lost during the event reduced as well.
Traders, according to the release, should also take note that the difference between Initial Margin and Maintenance Margin will heighten too, and the Liquidation Price will move slightly away from Average Entry Price.
Meanwhile, those traders with Base Risk Limit that is above 200 XBT notional for XBTUSD and 50 XBT for other contracts will have their Initial Margin requirements lowered while the Bankruptcy Price moves closer to Average Entry Price, with the Maximum Leverage available increasing as well.
The Maintenance Margin requirements will in the process be lowered, making the Liquidation Price moving closer to the Bankruptcy Price, while the amount of Maintenance Margin lost during the course of liquidation will also be lowered.
The difference between Initial Margin and Maintenance Margin will be heightened in the process while the Liquidation Price tilts away from Average Entry Price.
“The end of this trial period will be announced with 1 week’s notice,” BitMEX concluded in the release.
We are pleased to confirm we will be reducing our Base Maintenance Margin requirements for the XBT Series and ETH Series for a trial period, from 17 April 2020 at 0100 UTC. More info can be found on the BitMEX blog: https://t.co/kqz7lBnpyj
— BitMEX (@BitMEXdotcom) April 14, 2020