The concept of dynamic leverage is used for Bybit's Risk Limit. This means the larger the contract value traders hold, the lower the maximum leverage allowed. In other words, the initial margin requirement incrementally goes up by a fixed percentage at every specific increase in contract value level. Please note that the maintenance margin base rate is 0.5% for BTC and 1% for ETH, EOS and XRP, and the margin requirements will increase or decrease accordingly as risk limit changes.

 

Risk limit is a risk management measure to limit the risk exposure of traders. A large position with high leverage may cause huge contract losses when liquidated in a highly volatile market. Contract losses are created when the position is liquidated beneath the bankruptcy price and coupled with a depleted insurance fund that is insufficient to fully absorb the losses, Auto deleveraging (ADL) system will be triggered. Traders with a large position pose an increased risk of ADL to other traders on the exchange. To minimize the possibility of ADL occurring, Bybit imposes a risk limit on all trading accounts according to their positional contract value held.

 

As the position contract value increases, the maintenance margin and initial margin requirements will also increase. Users can choose to increase or decrease the risk limit through the Asset Overview panel. The default risk limit level on Bybit will always start from the lowest risk limit level.

 

Bybit will perform a laddered liquidation process for traders using higher risk limits, and will automatically reduce the level of maintenance margin by attempting to reduce the risk limit levels to the lowest possible level to avoid an immediate full liquidation of the trader’s position. For more details on the Liquidation process, please click here. 

 

Risk Limit Table：

Contracts	Risk Limit Base Value	Risk Limit Increment	Maintenance Margin Base Rate	Maintenance Margin Increment at every level	Initial Margin Base Rate	Initial Margin Increment at every level
BTCUSD	150BTC	150BTC	0.5%	0.5%	1%	0.5%
ETHUSD	3000ETH	3000ETH	1%	0.5%	2%	1%
EOSUSD	50000EOS	50000EOS	1%	0.5%	2%	1%
XRPUSD	750000XRP	750000XRP	1%	0.5%	2%	1%
DOTUSD	20000 DOT	20000 DOT	1%	0.5%	2%	1%
BITUSD	250000 BIT	250000 BIT	1%	0.5%	2%	1%
ADAUSD	200000 ADA	200000 ADA	1%	0.5%	2%	1%
MANAUSD	50000 MANA	50000 MANA	1%	0.5%	2%	1%
LTCUSD	2000 LTC	2000 LTC	1%	0.5%	2%	1%

 

Formula：

Term	Formula	Eg: ETHUSD（Total Position Value 4000 ETH, hence limit needs to increase by 1 time）
New Risk Limit（RL）	RL Base value+ （Number of incremental *RL incremental value）	3000 + （1*3000）= 6000 ETH
New Maintenance Margin（MM） %	MM Base rate + （Number of incremental*MM incremental rate）	1% + （1*0.5%）= 1.5%
New Initial Margin （IM） %	IM Base rate + （Number of incremental*IM incremental rate）	2% + （1*1%）= 3%
New Maintenance Margin Amount	New MM%* Total Position Value	1.5%*4000 = 60 ETH

For more details, please refer to the table below. 

 

Risk Limit for BTCUSD 

Position Value	Maintenance Margin	Initial Margin	Max Leverage
150 BTC	0.5%	1.00%	100.00
300 BTC	1.0%	1.50%	66.67
450 BTC	1.5%	2.00%	50.00
600 BTC	2.0%	2.50%	40.00
750 BTC	2.5%	3.00%	33.33
900 BTC	3.0%	3.50%	28.57
1050 BTC	3.5%	4.00%	25.00
1200 BTC	4.0%	4.50%	22.22
1350 BTC	4.5%	5.00%	20.00
1500 BTC	5.0%	5.50%	18.18

 

How to View Risk Limit Information

 

To view the Risk Limit information for all trading pairs, you can click on the Derivatives Info → Derivatives Trading Rules → Margin Data or visit this page.

 

 

 

Select the trading pair you would like to view, and you can see the complete Risk Limit information.