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Bybit will update its risk parameters for Portfolio Margin Mode to enhance capital efficiency and strengthen risk management. The changes, which affect the underlying price, implied volatility (IV) stress test factors, initial margin factor, and contingency factors for XRP, MNT and DOGE risk units, will take effect on 

. These adjustments are designed to align Bybit’s risk management framework with evolving market dynamics.

Adjusted risk parameters aim to reduce margin requirements while maintaining robust risk control.

Updates are informed by comprehensive market analysis of volatility and liquidity conditions.

Traders can benefit from more flexible capital allocation and greater purchasing power.

The portfolio margin is calculated using the following formula:

Portfolio Margin = Maximum Possible Loss + Contingency Loss

Reflects potential losses from price fluctuations, implied volatility shifts, and liquidity changes.

Accounts for unexpected market movements, ensuring sufficient coverage for 99.99% of potential risks.

This model provides a solid foundation for risk management while optimizing capital efficiency.

Updates to Portfolio Margin Mode risk parameters

The following parameters will be updated for XRP, MNT and DOGE:

- Implied volatility (IV) stress test factor

- Contingency risk factor for short options

- Future contingency factors (USD, USDC, USDT)

The Portfolio Margin mode offers capital efficiency, particularly when managing complex portfolios. It provides traders with the opportunity to enhance flexibility and maximize returns while maintaining appropriate risk coverage.

We recommend reviewing your trading strategies ahead of the update to ensure smooth adaptation. Thank you for your continued trust and support.

Bybit to update Portfolio Margin Mode risk parameters

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