SunCrypto is introducing an important update to the Maintenance Margin (MM%) structure for perpetual futures trading. This update is designed to enhance risk management and protect users from sudden full liquidations and additional liquidation charges, especially during volatile market conditions.

The new model introduces a more structured and risk-aware Maintenance Margin system based on leverage tiers and token liquidity.

What is Maintenance Margin (MM)?

Maintenance Margin (MM) is the minimum amount of margin that must be maintained in your futures position to keep it open. When the value of your position falls, and your margin balance drops below the Maintenance Margin level, the system triggers liquidation to prevent further losses. In simple terms:

  • Initial Margin → Amount required to open a leveraged position

  • Maintenance Margin → Minimum margin required to keep the position active

If your margin drops below the MM level, your position risks being liquidated by the system. A well-structured MM system helps traders by creating buffer zones before liquidation, allowing time to add margin or reduce risk.

Current Maintenance Margin Structure

Currently on SunCrypto, the Maintenance Margin is determined only by the leverage used:

  • 1x – 5x leverage: 3% MM

  • Above 5x leverage: 15% MM

While simple, this model does not fully account for different risk levels across leverage tiers and token liquidity, which is why an improved framework is being introduced.

New Tiered Maintenance Margin Model

The updated model introduces a tier-based MM structure depending on leverage brackets, and also distinguishes between:

  • Top 50 tokens by trading volume

  • All other listed tokens

Higher leverage naturally carries higher liquidation risk, so the new system increases Maintenance Margin progressively as leverage increases. Additionally, lower liquidity tokens will have slightly higher MM% to protect traders from sudden price swings. Below is the proposed reference structure:


If Leverage Between

Current MM % Rates

For Top 50 Tokens (New)

All Other Tokens (New)

1x to 5x

3%

5%

10%

5x to 25x

15%

15%

20%

25x to 75x

15%

20%

25%

75x to 100x

15%

25%

30%

100x to 150x

15%

30%

35%


To ensure that no existing positions are negatively affected, SunCrypto will not implement this change immediately. Instead, the transition will be gradual throughout March 2026.

The update will be implemented in 7 gradual steps, with each step increasing the Maintenance Margin by up to +2% for Top 50 trading pairs and +2% to +3% for other pairs, while maintaining a minimum one-week soak period between steps and conducting safety checks on open positions before every phase, with the full transition expected to be completed by 23 March 2026, ensuring traders have sufficient time to adjust leverage, add margin, or rebalance their positions if needed.

Example: How the New MM Structure Helps Traders

A trader opens a ₹1,00,000 BTC perpetual futures position using 50x leverage. This means the trader only needs about ₹2,000 as initial margin.

Under the Current System

  • Maintenance Margin = 15%

  • If the market moves quickly against the position, the system may reach the liquidation threshold faster, leaving less room for the trader to react.

Under the New System

At 50x leverage, the position falls in the 25x – 75x leverage tier.

  • Top 50 Tokens: MM = 20%

  • Other Tokens: MM = 25%

With the updated MM structure, higher leverage positions will have stronger margin buffers, giving traders better risk visibility, reducing the chances of sudden cascading liquidations during volatility, and creating a more stable trading environment. 

Conclusion

The new Maintenance Margin framework will reduce the chances of sudden liquidations, protect traders from unnecessary liquidation penalties, improve risk control across different leverage levels, and create a safer and more stable futures trading environment. 

At SunCrypto, our goal is to build a transparent and trader-friendly derivatives platform where users can manage leveraged positions with greater confidence and protection.

Disclaimer: Crypto products and NFTs are unregulated and can be highly risky. There may be no regulatory recourse for any loss from such transactions.