8. Liquidations, Initial Margin and Maintenance Margin - Kraken Futures

Key points : - Unlike traditional markets, when you trade on Kraken Futures, your losses cannot exceed your deposits. - Initial margin is the margin required to enter a position. The larger the position size, the more initial margin required. - Maintenance margin is the minimum amount of margin required to keep a position open. - When Maintenance margin threshold is hit, the position will be liquidated. - Mark Price is used for Maintenance margin calculations. - If your position is liquidated, your position is closed and you should assume the margin balance in that token will go to zero.