In the Unified Trading Account (UTA), where both Cross Margin and Portfolio Margin modes provide flexibility and enhance capital efficiency, it's crucial to understand that liquidation will be triggered when the Account Maintenance Margin Rate (MMR) reaches 100%, potentially resulting in significant losses.

 

Despite traders' reliance on Stop Loss orders to safeguard their positions, a significant challenge persists: the MMR can reach that critical 100% threshold before the Stop Loss price is triggered, potentially exposing traders to excessive risk.

 

Acknowledging the necessity for a more comprehensive risk management solution, Bybit has introduced the Maintenance Margin Rate (MMR) Close Order for UTA. This tool empowers traders to take proactive control over their account's risk profile, providing a resilient defense against the inherent volatility of crypto trading.

 

 

 

 

 

How MMR Close Order Work

When the account MMR reaches the preset trigger MM rate on the position, the position will be fully closed by Market Order at the best available market price. Please note that MMR Orders are currently supported exclusively in the Cross Margin Mode under UTA, and are applicable only for USDT Perpetual, USDC Futures and Perpetual Contracts.

 

When configuring an MMR Close Order, it's crucial to pay attention to the following key considerations:

 

1. MMR Close Orders can only be placed from the position tab after a position is opened. 

 

2. Creating an MMR Close Order for a partial position quantity is not supported, and only one MMR Close Order can be set for each position.

 

3. When the system detects that the execution of the MMR Close Order will lead to an increase in overall account MMR, the MMR Close Order will be rejected. For example, when an MMR Close Order closes a specific position, it can dissolve the hedging relationship between that position and another, thereby increasing account risk.

 

4. Switching margin modes is not allowed when there is an existing MMR order.

 

5. The preset trigger MM rate must be between the current account MMR and 90%.

 

6. When there are multiple MMR Close Orders for different positions triggered at the same time due to the same trigger MM rate being set, the liquidation sequence will be based on a predetermined liquidity order.

 

7. When the MMR for multiple MMR Close Orders is simultaneously reached, such as 50% for BTCUSDT and 55% for ETHUSDT, the MMR Close Order for BTCUSDT will be executed first. After closing the BTCUSDT position, the system will verify whether the account's MMR meets the ETHUSDT MMR closing trigger condition, which is set at 55%. If the account's MMR falls below 55%, the MMR Close Order for ETHUSDT will not be triggered and will remain pending until the MMR rises back to 55% again. This ensures that each MMR Close Order is executed in a logical order based on the trigger conditions.

 

8. In the event of an extreme market situation where the MMR instantly surges to 100%, the MMR Close Orders may fail to be triggered, resulting in liquidation. For example, if a trader configures a 90% trigger rate for an MMR Close Order while the MMR suddenly surges from 89% to 100%, liquidation will take precedence.

 

 

 

 

 

Placing an MMR Close Order

Please navigate to your position tab, tap on Set TP/SL, switch to the MMR Close tab in the pop-up window, set the desired Trigger MMR, and confirm the order by clicking Confirm.

 

 

 

Note:

You can edit the Trigger MMR for your positions at any time.

 

 

To cancel your MMR Order, you can view the existing MMR Close order details from the Current Orders tab and tap on Cancel.