Important: Update to the Isolated Margin Calculation Formula

05/20/2025, 09:45:02

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Dear KuCoin Users,

 
To provide a better futures trading experience, we will upgrade the margin calculation formula under isolated margin mode from 03:00 to 04:00 (UTC) on May 22, 2025.
 
This upgrade will adjust the formulas for maintenance margin and liquidation fees to make liquidation assessments more aligned with real-time risk. It will also reduce the capital freeze pressure when opening positions, further improving capital efficiency and risk control in futures trading. During the upgrade, futures trading and related features will not be affected. After the upgrade, all isolated margin positions will be assessed and calculated using the new formula.
 
Details are as follows:
 
I. Upgrade Time
Upgrade Time: May 22, 2025, 03:00–04:00 (UTC)
Estimated Completion Time: May 22, 2025, 04:00 (UTC)
 
II. Upgrade Details
We will adjust the margin calculation formula for isolated margin mode
Before Adjustment:
Margin Rate = Maintenance Margin / Total Position Margin
  • Maintenance Margin = Position Maintenance Margin + Bankruptcy Fee + Estimated Funding Fee = Average Entry Price × Position Size × Contract Multiplier × (Maintenance Margin Rate + (1 + 1/Leverage) × Taker Fee Rate + Funding Rate)
  • Total Position Margin = Initial Margin + Additional Margin + Funding Fee + Bankruptcy Fee + Unrealized PNL
 
After Adjustment:
  • Bankruptcy Fee Freeze Removed: Bankruptcy fees will no longer be frozen when opening a position.
  • Introduction of Liquidation Fee:
    • Liquidation Fee = Mark Price × Position Size × Contract Multiplier × Liquidation Fee Rate
    • Liquidation fee will be calculated in real time and only charged when liquidation occurs.
  • Maintenance Margin Optimization:
    • Entry Price is replaced with Mark Price for maintenance margin calculation.
    • Optimized Margin Rate = Maintenance Margin / Total Position Margin
      • Where: Maintenance Margin = Position Maintenance Margin + Liquidation Fee + Estimated Funding Fee = Mark Price × Position Size × Contract Multiplier × (Maintenance Margin Rate + Liquidation Fee Rate + Funding Rate)
      • Total Position Margin = Initial Margin + Additional Margin + Funding Fee + Unrealized PNL
 
III. Impact
  1. Since this upgrade involves changes to the underlying calculation logic of futures contracts, the following modules will be affected:
    • Margin rate calculation
    • Liquidation price estimation
    • Maximum open position
    • Position cost and additional margin
    • Leverage adjustment
  2. This upgrade will also affect the calculation methods used in futures copy trading and futures trading bots.
 
IV. Risk Reminder
  1. Due to the changes in the liquidation price formula, the risk level of current positions may change.
  2. Please review your positions before the upgrade. Assess the balance and margin rate of your futures account based on current market volatility and actual risk. Manage your risk through timely margin replenishment, position adjustment, or leverage adjustment to avoid forced liquidation.
 
V. Notes
  1. This upgrade will not affect spot and margin trading, deposits and withdrawals, or KuCoin Earn services.
  2. KuCoin reserves the right of final interpretation for this announcement.
 
We remain committed to providing you with a more efficient and secure futures trading experience. Thank you for your understanding and support!
If you have any questions, please contact our online support team.
 
KuCoin Futures Team