Glossary
Maintenance margin is the minimum equity a position must retain before liquidation begins.
In short
Maintenance margin is the equity floor for an open position, expressed as a fraction of position notional. When mark-price losses take account equity below that floor, the position becomes eligible for liquidation.
Higher leverage means less initial buffer above the maintenance floor, so a smaller adverse move exhausts it. The floor itself does not change with your confidence in the trade.
This is why mirrored leverage is capped independently of a leader's own choices: the follower's survival budget, not the leader's conviction, defines the limit.
Questions
Adding margin raises the buffer, but the underlying position risk is unchanged.
No. It varies by market and leverage tier.
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