Margin Usage (MU) is the key indicator for managing risk on Pintu Futures. This guide explains what MU is, how to calculate it, the danger stage, and what happens during liquidation.
Margin Usage (MU) is the amount of funds or collateral you use to maintain a leveraged position. On Pintu Futures, MU is shown as a percentage (%).
The higher the percentage, the more of your funds are used to maintain your position. Pintu Futures uses cross-margin, so MU reaching 100% can liquidate all your funds down to 0. That’s why you should keep MU within a safe range.
MU is calculated by dividing total maintenance margin by available margin plus total maintenance margin:
MU = Total Maintenance Margin / (Available Margin + Total Maintenance Margin)
Example:
MU enters the danger stage when it exceeds 75%. This means your position is under threat of liquidation. Liquidation happens when MU reaches 100%.
When MU enters the danger stage, you can still lower it in two ways:
Liquidation is the process where your open positions are closed automatically when MU reaches 100%. Because Pintu Futures uses cross-margin, liquidation can reduce all your funds on Pintu Futures to 0.
When MU reaches 100%, the exchange runs a check before liquidating your account:
During liquidation, your remaining account balance is taken over by the Clearing house (PT KKI) to cover liquidation costs. For example, if you have Rp1.000.000 in maintenance margin at liquidation, that amount is taken by Clearing, leaving your balance at zero.
After that, Clearing strategically closes your positions in the order book to minimize market impact. If this produces a surplus, the excess is allocated to the insurance fund at CFX. The insurance fund acts as a protective reserve so the winning party still receives payment even if the counterparty defaults.
Futures trading with leverage carries high risk. You can lose all your funds in a short time. Make sure you understand how MU and liquidation work before opening a position.