**How is USDC contract margin calculated? One picture explains it all**

Many people get stuck on margin calculation when opening contract positions. Actually, it's very simple:

**Initial Margin = Position Value ÷ Leverage**
Position Value = Contract Quantity × Mark Price

Example: Buy 0.5 BTC contract, entry at $50,000, 10x leverage, current mark price $50,500
→ Initial Margin = 0.5 × 50,500 ÷ 10 = 2,525 USDC

**Note two details:**

1️⃣ Closing fees are included. Long position closing fee = Position size × Entry price × (1 - 1/Leverage) × Fee rate; for short positions, it's × (1 + 1/Leverage). In the example above, the long position needs to add 12.375 USDC, so the total margin is actually 2,537.375 USDC

2️⃣ The mark price fluctuates in real time, and your margin requirement changes accordingly. When BTC price rises, position value increases, and margin requirements go up. But if you are long, your unrealized profit offsets this, so your account risk doesn’t actually increase

Core point: **The lower the leverage, the more margin is occupied** — that's why beginners are advised to start with low leverage