Is the Initial Margin Requirement Static or Can It Change with Market Conditions?

The Initial Margin requirement is not entirely static; it can change with market conditions, primarily volatility. While the percentage required for a given leverage level is set, the exchange's risk team can increase the margin requirement across all tiers if volatility is expected to surge.

This preemptive adjustment is a crucial risk management tool to create a larger buffer against potential price swings and reduce the likelihood of mass liquidations.