What is MMR Stop-Loss
In futures trading, the risk of a position is measured by the futures account’s maintenance margin ratio (MMR). The lower the MMR, the higher the risk. When MMR falls to 100% or below, liquidation will be triggered, which can lead to significant losses. While traders can set stop-loss orders to protect their positions, a problem arises: MMR might reach the liquidation threshold of 100% before the trigger stop-loss price is reached, exposing the trader to higher risk.
To help users implement a more comprehensive trading strategy and manage risk more effectively, Gate has developed a new type of stop-loss feature that uses MMR as the trigger condition. Through this feature, traders can proactively control account risk and respond more flexibly to the volatility inherent in cryptocurrency trading.
In the MMR Stop-Loss feature, traders can set a trigger threshold from 110% to 900%. For example, if you set the trigger MMR of 385% for a long position in the BTCUSDT contract, the system will close the entire long position in BTCUSDT when MMR falls to 385% or below.
Note:
- The MMR Stop-Loss order currently only supports USDT perpetual and BTC perpetual contracts in the classic account mode.
- Only cross margin mode positions support MMR Stop-Loss orders; isolated margin positions do not. If a position’s margin mode is switched from cross margin to isolated margin, the corresponding MMR Stop-Loss order will be automatically canceled.
- The MMR Stop-Loss is configured per position and, when triggered, closes the respective position.
- During extreme market volatility, MMR may suddenly drop directly to 100%, triggering liquidation. In this scenario, the MMR Stop-Loss may fail to be triggered.
How MMR Stop-Loss Works
- When the account’s margin ratio reaches the preset trigger MMR for the position, the position will be fully closed via a market order at the best available price.
- When setting the MMR Stop-Loss, please take note of the following:
- MMR Stop-Loss orders can only be submitted from the position tab after opening a position.
- MMR Stop-Loss orders cannot be created for a partial position; each position can only have one MMR Stop-Loss order.
- If a cross-margin position has an MMR Stop-Loss order, changing the margin mode from cross to isolated will automatically cancel that MMR Stop-Loss order.
- The maximum trigger MMR is 900%, and the minimum is 110%. A valid preset trigger MMR must be between 110% and the account’s current MMR.
- If multiple MMR Stop-Loss orders for different positions are triggered at the same time due to the same trigger MMR, the closing sequence will follow the preset priority of the active orders.
- In a situation where multiple MMR Stop-Loss orders have been triggered (e.g., BTCUSDT MMR is 150% and ETHUSDT MMR is 155%), the ETHUSDT MMR Stop-Loss order will be executed first. After closing the ETHUSDT position, the system will check if the account’s MMR meets the BTCUSDT MMR Stop-Loss trigger condition (set at 150%). If the account’s MMR is above 150%, the BTCUSDT MMR Stop-Loss order will remain pending until the MMR drops to 150% again. This ensures each MMR Stop-Loss order is executed in a logical sequence based on trigger conditions.
- In extreme market conditions, if MMR rapidly drops to 100%, it may bypass the MMR Stop-Loss and result in liquidation. For instance, if a trader sets an MMR Stop-Loss trigger at 110%, and the MMR suddenly drops from 113% to 100%, liquidation will take precedence.
How to Set an MMR Stop-Loss Order
MMR Stop-Loss is a type of stop-loss order and can be set directly from the position.
App Version
Tap TP/SL in the position, switch to the MMR Stop-Loss tab, and open the page for setting MMR Stop-Loss.
Set the trigger MMR within a range of 110%-900%. After tapping Confirm, the MMR Stop-Loss order can be viewed under Orders - Conditional.
Note:
- Trigger MMR should be lower than the current MMR value.
- Trigger MMR should be set within the range of 110%-900%.
Web Version
Click the MMR Stop-Loss in the position, and then open the page for setting MMR Stop-Loss.
Set the trigger MMR within a range of 110%-900%. After clicking Confirm, the MMR Stop-Loss order can be viewed under Open Orders - Conditional.
Gate reserves the final right to interpret the product.
For further assistance, please visit the Gate official support page or contact our customer support team.
