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Why manage margin

Once a position is open, you can adjust the collateral backing it without closing and reopening. There are two reasons you might want to:
  • Add margin to lower liquidation risk — more collateral pushes your liquidation price further away from the mark.
  • Remove margin to free wallet collateral when the position is comfortably in profit and you want to redeploy capital.
Both actions happen in one transaction you sign with your wallet — choose add or remove, then enter the USDC amount.
Margin removes apply a liquidation-style safety check, 24/7. Adds are always allowed. Removes require your post-remove position to stay above the maintenance-margin requirement and within the leverage tiers (up to 200× on the smallest positions, scaling down by position size) — the same tiers now apply in every session. Off-hours pricing comes from an off-exchange reference feed that keeps updating around the clock (not a stale feed), and off-hours carries a tighter open-interest cap plus an armed ADL tail-backstop — so a removal that passes mid-session can still be a riskier position to hold overnight.

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Adds are always allowed

Adding margin is straightforward. The only constraint is your wallet USDC balance — adding margin moves USDC from your wallet into the position’s collateral. New collateral lifts your effective equity directly, which moves the liquidation price away from current mark. There is no upper bound and no health check needed on the add path: more collateral can only make a position safer.

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Removes are gated by a PnL-aware health check

Removal applies the same safety check as a liquidation. After the proposed removal, your position must still sit above the maintenance margin requirement (MMR = 40 bps venue-wide). The math — including how unrealized PnL feeds in — is documented in Liquidations. If the requested removal would drop your position to or below the maintenance margin requirement, the request is rejected before any funds move. You cannot accidentally remove yourself into a liquidatable state.
If you want to take profit but keep the position open, partial close is usually cleaner than removing margin — it locks in PnL and reduces size proportionally, rather than just thinning the buffer.

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Min collateral floor

Even when the health check passes, you can’t remove collateral below the $10 per-position minimum — the request is rejected before any funds move.
RuleValueWhat happens if you breach it
Minimum collateral per position$10Removal is rejected, no funds move
This floor keeps tiny, hard-to-manage positions off the venue. If you want to go below $10 of collateral, close the position instead.

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When part of your collateral came from the payout queue

Part of a position’s collateral can come from the LP payout queue instead of your wallet, and Parquet tracks how much. When you remove margin, the wallet-funded portion comes out first; the queue-funded portion is only touched once the wallet portion is used up. This makes sure removing margin can never quietly drain collateral that was funded by the payout queue.
If your position has no queue-drawn collateral, this rule has no effect — every removal comes from your wallet portion as expected. See Payout queue for the full picture on how queue-drawn collateral enters a position.