A margin call is a request to restore required collateral after a margined account or position no longer meets the applicable threshold. It can arise from trading losses, falling collateral values or an increase in the margin requirement.
What the request can require
A broker or venue may require additional funds, a reduction in exposure or another permitted action by a specified deadline. The amount needed can be based on restoring initial margin rather than merely reaching maintenance margin. The exact requirement depends on the agreement and risk system.
For example, a hypothetical account with 700 USDT of equity might be required to restore a 1,000 USDT target. With no other changes, that requires 300 USDT of additional eligible collateral.
A warning is not a guarantee
Many crypto derivative systems can liquidate automatically when risk limits are breached. They need not provide a traditional margin call or a grace period before closing exposure. Notifications may also arrive too late to allow a response.
Adding funds increases the capital exposed and does not guarantee recovery. A margin call is therefore distinct from liquidation itself: one requests a remedy, while the other reduces or closes positions under the applicable rules.