When Auto-Deposit Margin mode is enabled, funds in the Available Balance will be added to the existing position whenever liquidation happens, trying to prevent the position from being liquidated. This mode is useful for users who are hedging existing positions.
Traders may choose to enable the “Auto-Deposit Margin” mode in the Leverage panel or the “Positions" panel.
Differences Between Auto-Deposit Margin and Cross Margin:
Auto-Deposit Margin utilizes the fixed amount of margin of the position to calculate the liquidation price. Only when the mark price reaches the liquidation price, will the system add margin from the available balance to the position and recalculate the liquidation price based on the current margin.
Different from the Auto-Deposit Margin, the Cross Margin utilizes the full amount of margin in the available balance for the liquidation price calculation and the margin amount may increase or decrease as the mark price changes. The added margin to the position will not be scaled down if there's no profit in the position.