Initial Margin vs Liquidation Price

The capital required to open a leveraged derivatives position, calculated as notional value divided by leverage; at 10x leverage, a $50,000 notional Bitcoin position requires $5,000 initial margin to open.

The mark price at which a leveraged position is automatically closed by the exchange to recover borrowed capital; for longs, Entry Price × (1 − 1/Leverage + Maintenance Margin Rate); for shorts, Entry Price × (1 + 1/Leverage − Maintenance Margin Rate).