RMS policy for MTF square-off

Wed, 20 May 2026 00:00:00 +0000

The Risk Management System (RMS) policy for MTF square-off on Zerodha (and any broker offering MTF) follows a defined sequence: margin call notice, top-up window, then forced liquidation if not addressed.

Trigger: MTM erosion

MTF square-off is triggered when:

Position MTM loss erodes the maintenance margin.
Pledged collateral value (for the MTF position) falls below requirement.
User fails to pay accrued interest.

The exact trigger threshold varies; typically when total margin used > 90% of margin available.

Square-Off on WebNotes

RMS policy for MTF square-off

Trigger: MTM erosion