Bitget futures: A complete guide to MMR SL
What is MMR SL?
MMR SL (maintenance margin rate stop-loss) is an innovative risk management tool launched by Bitget for futures trading. It's designed to help users reduce the potential losses associated with leveraged trading. Unlike traditional SL orders, MMR SL is triggered based on your account's maintenance margin rate (MMR). When the MMR reaches a user-defined threshold, the system automatically closes all positions at market price, helping you to avoid further losses or even liquidation.
How MMR works (with formula)
The MMR (maintenance margin rate) reflects the proportion of margin required to maintain positions compared to your total account assets. If your MMR hits 100%, liquidation may occur. MMR SL lets you set a trigger threshold below 100% (typically between 70% and 90%). When your account's MMR reaches that level, the system automatically closes your positions to help you avoid liquidation.
Formula:
MMR = (maintenance margin ÷ total account assets) × 100%
Where:
• Maintenance margin = position value × maintenance margin rate (The MMR is tier-based and varies by position size. For more information, refer to Bitget's Position Tiers page.)
• Total account assets = account balance + unrealized PnL
Case study
Assumptions:
1. Account balance: 10,000 USDT
2. Position value: 100,000 USDT (10x leverage)
3. MMR: 1% (assumed fixed rate based on the position tier)
4. MMR SL threshold: 80% (user defined)
Calculation:
1. Maintenance margin
= position value × MMR
= 100,000 USDT × 1%
= 1000 USDT
2. Initial MMR (No unrealized PnL):
= (maintenance margin ÷ total account assets) × 100%
= (1000 ÷ 10,000) × 100%
= 10% (This is safely below the SL threshold)
3. Scenario 1:
Suppose market volatility results in an unrealized loss of −3000 USDT:
￮ Total account assets = 10,000 + (−3000) = 7000 USDT
￮ Updated MMR = (1000 ÷ 7000) × 100% ≈ 14.3%
4. Scenario 2: Unrealized PnL = −8750 USDT
￮ Total account assets = 10,000 + (−8750) = 1250 USDT
￮ Updated MMR = (1000 ÷ 1250) × 100% ≈ 80%
5. MMR SL trigger:
Once the MMR reaches the user-defined threshold of 80%, the system automatically closes all positions to prevent the account from hitting 100% and triggering liquidation.
Key points:
• SL function: Positions are closed at 80% MMR, preserving 1250 USDT and avoiding liquidation. (For example, liquidation would occur if total assets dropped to 1,000 USDT, where MMR = 100%.)
• Threshold strategy: Lower thresholds (e.g., 70%) are more conservative, while higher thresholds (e.g., 90%) allow for greater flexibility but come with increased risk.
How to set MMR SL?
Here's how you can easily set an MMR SL on Bitget:
1. Go to the positions page: Log in to the Bitget app or website, navigate to the futures trading page, and click the Positions tab.
2. Open SL settings: Click the TP/SL button on the right side of your position, then switch to the MMR SL tab in the pop-up window.
3. Set MMR trigger: Check the current MMR and choose a trigger threshold that falls between your current MMR and 90%.
1. Confirm settings: After reviewing the MMR trigger value, click Confirm to complete the setup. Once the MMR reaches the threshold, the system will automatically close the position at market price.
2. Edit or cancel: Go to the Current Orders tab, locate the MMR SL order, and click Edit or Cancel to make changes.
Notes:
• The MMR SL trigger must be greater than your current MMR and no more than 90%.
• Only one MMR SL order can be placed per position; partial closures are not supported.
• You cannot switch the margin mode while an MMR SL order is active.
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