Note: All examples below use USDT for simplicity. The same calculations and logic apply to USD1-quoted perpetual swap contracts.
Margin Trading (Without Trading Bonus)
Assume a trader purchases a 0.1 BTCUSDT perpetual swap contract at a market price of 30,000 USDT, selecting 10x leverage for a long position.
- Notional value = 30,000 USDT × 0.1 = 3,000 USDT
- Initial margin = 3,000 × 10% = 300 USDT
- Maintenance margin = 3,000 × 1% = 30 USDT
The trader puts up 300 USDT as collateral to hold the position valued at 3,000 USDT.
Example 1: Price Increase
If BTCUSDT rises from 30,000 USDT to 36,000 USDT:
Unrealized P&L = 0.1 × (36,000 − 30,000) = 600 USDT
- Remaining margin = Initial Margin + Unrealized P&L = 300 + 600 = 900 USDT
Even though the price increased by 20%, the margin grows by 200%.
Note:
- Mark price is used to calculate unrealized P&L
- Market price is used for realized P&L
Example 2: Moderate Price Drop
If BTCUSDT falls from 30,000 USDT → 28,000 USDT:
- Unrealized P&L = 0.1 × (28,000 − 30,000) = −200 USDT
- Remaining margin = 300 − 200 = 100 USDT
Since remaining margin (100 USDT) ≥ maintenance margin (30 USDT), the position is not liquidated.
Example 3: Large Price Drop
If BTCUSDT falls from 30,000 USDT → 26,000 USDT:
- Unrealized P&L = 0.1 × (26,000 − 30,000) = −400 USDT
- Remaining margin = 300 − 400 = −100 USDT
Since remaining margin < maintenance margin, the position is liquidated, and the trader loses the entire initial margin.
Margin Trading (With Trading Bonus)
Trading Bonus can contribute up to 50% of the total position margin.
Example:
User capital: 200 USDT
Trading Bonus: 300 USDT
Contract: 0.1 BTCUSDT at 30,000 USDT
Leverage: 10x
Calculations:
- Notional value = 30,000 × 0.1 = 3,000 USDT
- Initial margin = 3,000 × 10% = 300 USDT
- Eligible collateral: 150 USDT (user capital) + 150 USDT (Trading Bonus)
If the user chooses to add extra capital beyond the minimum required, the system allows adding up to the full initial margin requirement plus the eligible Trading Bonus.
- 150 USDT (user capital) + 150 USDT (Trading Bonus) + optional extra capital (100 USDT) = 400 USDT
Therefore, even if the user adds extra capital, the maximum margin is limited to 400 USDT, because the Trading Bonus can only contribute up to 50% of the margin, and the system caps the additional capital that can be added to prevent over-leveraging.
Note: Only user capital counts toward trading volume, rebates, and referral rewards. In this example, the eligible trading volume is 1,500 USDT.
If a realized loss of -100 USDT occurs:
-
Deduction is split 50/50 between capital and Trading Bonus:
- 50 USDT deducted from user capital
- 50 USDT deducted from Trading Bonus
This rule also applies to trading fees and funding fees.
If Trading Bonus Expires or Is Removed
If the Trading Bonus expires or is removed while a position is still open:
The system attempts to replace the expired Trading Bonus using the user’s available capital (up to 100% of the margin).
- If the user has sufficient capital, the position margin is fully maintained using their own funds.
-
If the user’s capital is insufficient, the total margin decreases, increasing leverage and liquidation risk.
Example:
- Initial margin: 150 USDT capital + 150 USDT Trading Bonus
- Trading Bonus expires → 150 USDT bonus removed
- System uses 150 USDT user capital to maintain margin
- Maximum margin reduces, increasing leverage if additional funds are not added
Users should monitor positions when Trading Bonus is removed to avoid unexpected liquidation.
Risk Warning:
Trading in cryptocurrency involves risk and potential losses. Before trading, please make your investment decisions cautiously by considering your investment objectives, experience, and risk tolerance. You are solely responsible for your investment decisions, and Flipster is not liable for any losses you may incur. Derivatives trading, in particular, is subject to high market risk and price volatility. Please obtain independent advice where appropriate. This information should not be construed as financial or investment advice.