A margin ratio compares specified collateral or equity measures with a margin requirement. The name is not standardized across platforms: the numerator, denominator and direction of risk must be checked before interpreting the percentage.
Two different conventions
Suppose eligible equity is 100 USDT and the maintenance requirement is 25 USDT. Requirement divided by equity is 25%; equity divided by requirement is 400%. Both describe the same simplified account, yet move in opposite directions as losses reduce equity.
Under the first formula, a rising ratio indicates less remaining support. Under the second, a falling ratio does. This example excludes fees, reserved funds, collateral discounts and other adjustments.
Read the threshold with the formula
A venue may use a ratio for order restrictions, warnings or liquidation, with thresholds specified in its own rules. Do not transfer a displayed percentage or trigger level from one account system to another.
A maintenance margin rate is a separate concept: it helps calculate the required margin from exposure. Account ratios may combine several positions and collateral assets, so one position’s price alone may not explain a sudden change.