How to handle a margin call on Bybit before my position gets liquidated?

Understanding Margin Call Triggers

1. A margin call on Bybit occurs when the margin balance in a leveraged position falls below the maintenance margin requirement, signaling insufficient equity to sustain the open trade.

2. This threshold is dynamically calculated based on the position size, leverage level, and current market price of the underlying asset.

3. Unlike liquidation, a margin call serves as an early warning — it does not automatically close the position but demands immediate action from the user.

4. Bybit displays real-time margin ratio and liquidation price directly in the trading interface, enabling users to monitor exposure continuously.

5. The system calculates margin ratio using the formula: (Wallet Balance + Unrealized PnL) / Position Margin × 100%, and triggers the alert when this value drops near or below the maintenance threshold.

Immediate Actions Upon Receiving a Margin Call

1. Deposit additional collateral into the same margin mode (isolated or cross) used for the position to raise the margin ratio above the maintenance level.

2. Reduce position size by partially closing the trade, thereby lowering required margin and increasing buffer against further adverse price movement.

3. Adjust leverage downward if operating in isolated margin mode, which recalculates the maintenance margin requirement proportionally.

4. Switch from isolated to cross margin mode only if holding sufficient assets across the entire account — this allows utilization of total wallet balance as collateral.

5. Avoid placing new orders or transferring funds out of the margin wallet until the margin ratio stabilizes above 150% to prevent cascading risk.

Preventive Configuration Strategies

1. Set up price-based conditional orders to auto-close positions before reaching liquidation price, especially during high-volatility events like Fed announcements or major protocol upgrades.

2. Enable “Auto-Deleveraging Protection” in account settings to prioritize partial closure over full ADL activation during systemic stress.

3. Use the “Mark Price” instead of “Last Price” for risk estimation, as Bybit’s liquidation engine relies on mark price to mitigate manipulation-based liquidations.

4. Regularly review the “Risk Limit Table” for each contract type to understand how position size affects initial and maintenance margin requirements at varying leverage tiers.

5. Maintain a dedicated reserve in stablecoins within the same margin wallet to enable instant top-ups without waiting for external transfers.

Impact of Market Conditions on Margin Stability

1. During ETH price drops exceeding 25% within 24 hours, cross-margin positions tied to sUSDe exposure face amplified funding rate pressure and increased likelihood of cascading liquidations.

2. When USDe decouples from its $1 peg, Bybit’s internal oracle may adjust mark price inputs, indirectly affecting margin ratio calculations for related synthetic assets.

3. High-frequency volatility spikes — such as those observed after the February 2025 Bybit ETH cold wallet breach — trigger tighter internal risk filters, raising effective maintenance thresholds temporarily.

4. Network congestion on Ethereum mainnet delays transaction confirmations, potentially causing manual top-up attempts to miss critical windows before automatic liquidation executes.

5. Arbitrage gaps between Bybit’s index price and major spot exchanges widen during panic sell-offs, increasing divergence between mark price and execution price — a factor that accelerates margin erosion.

Frequently Asked Questions

Q: Can I disable margin calls entirely on Bybit?Margin calls cannot be disabled. They are mandatory risk management signals built into Bybit’s trading engine and comply with global derivatives regulatory expectations.

Q: Does Bybit charge a fee for topping up margin during a margin call?No fee is charged for internal transfers between wallet sub-accounts or deposits of supported assets into the margin wallet.

Q: Will my stop-loss order execute before or after a margin call?A stop-loss order operates independently of margin logic. It triggers based on last traded price and may fill before, during, or after a margin call depending on execution speed and market depth.

Q: What happens if my position is closed manually right after a margin call but before liquidation?The position closes at prevailing market price. Any unrealized loss becomes realized, and remaining margin balance is returned to the wallet minus applicable taker fees.