> ## Documentation Index
> Fetch the complete documentation index at: https://docs.parquet.exchange/llms.txt
> Use this file to discover all available pages before exploring further.

# Managing margin

> Add or remove margin from an open Parquet position — when removals are allowed, the $10 minimum, and tighter off-hours rules.

## 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.

<Warning>
  **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.
</Warning>

## 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](/reference/glossary#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.

## 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](/trade/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.

<Tip>
  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.
</Tip>

## 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.

| Rule                            | Value | What happens if you breach it      |
| ------------------------------- | ----- | ---------------------------------- |
| Minimum collateral per position | \$10  | Removal 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.

## 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.

<Note>
  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](/trade/payout-queue) for the full picture on how queue-drawn
  collateral enters a position.
</Note>