What Happens If I Fail to Maintain Sufficient Funds or Miss Payments in MTF?

What Happens If I Fail to Maintain Sufficient Funds or Miss Payments in MTF?

At FYERS, Margin Trading Facility (MTF) allows you to trade with leverage, and with that comes the responsibility of maintaining sufficient margins and paying interest on time. If margin requirements are not met or interest dues remain pending, it can lead to forced square-off of positions, temporary suspension of MTF access, or a negative ledger balance.

Risk of Liquidation Due to Margin Shortfall:

During periods of market crashes or high volatility, if your mark-to-market (MTM) loss reaches or exceeds 80% of the initial margin, FYERS may square off your MTF positions without prior notice. This is a risk-control measure to prevent further losses and applies to all MTF positions, regardless of the stock.

Square-off can occur quickly at market prices. Maintain adequate margin buffers to avoid liquidation.

What You Should Do

  • Monitor your MTM exposure and available margin under the Funds section.
  • Keep an additional free balance to manage sudden price movements.
  • We send alerts via email, WhatsApp, and occasionally by phone; however, liquidation may still occur without prior notification.

Learn more about margin shortfall notifications

When the margin requirements aren’t fulfilled:

Flagged Positions: If your margin falls below the required level, your trades may be flagged for risk.

Forced Liquidation: Positions may be partially or fully liquidated to cover the shortfall.

Notice: During periods of high volatility, prior notice may not be guaranteed.

MTF increases both opportunity and risk. Continuous monitoring is essential.

Notifications and Alerts

Yes, we notify you when your margin usage breaches the required limits.

  • Trigger: Margin falls below the required threshold
  • Channels: Email, WhatsApp, and sometimes phone calls
  • Action: Add funds or reduce positions promptly
In highly volatile markets, liquidation may occur without notification. Alerts are not a substitute for active monitoring.

What Happens If You Miss Interest Payments:

If MTF interest is not paid on time, your access to MTF will be temporarily paused until dues are cleared. You will still be able to see your holdings and account details, but new MTF orders will not be permitted.

  • There is no permanent restriction.
  • You can view holdings and account details normally.
  • MTF access resumes after outstanding dues are cleared.

Learn how MTF interest is calculated

What Happens After Square-Off:

  • Losses are adjusted against your available balance.
  • Shortfalls may result in a negative ledger balance.
  • Interest may apply to outstanding dues.

Learn more about insufficient margin consequences

What If...

ScenarioSolution
You add funds before the 80 percent MTM breachYour position may be retained, but the Risk Team may still review it based on market conditions.
The stock gaps down suddenlyMTM may breach the limit instantly. Square-off will occur at the next available price. Maintaining a sufficient margin is essential.
You received a margin shortfall alertAdd funds immediately. Learn more about alerts.
You did not receive an alertCheck your spam or promotions folders and verify your registered details. Always monitor your margin on the FYERS platform.
Your position was liquidatedCheck your transaction log. If you need assistance, contact us.
You missed an interest paymentClear the dues, and MTF access will resume.
You do not know why MTF is pausedCheck your interest summary or reach out to us.
You need help reviewing a square-off or duesContact us with your Client ID and relevant details.
Why does the leverage change for MTF stocks, and what happens when it does?Leverage is subject to change based on market volatility and risk conditions. When it changes, the required margin in your account is adjusted accordingly. If there are insufficient funds to meet the revised margin requirement, your account may face a shortfall, and the Risk Team may liquidate the position as per the risk policy.
Monitoring your Funds and Margin section regularly helps prevent disruptions or liquidation. Margin buffers provide additional safety during unpredictable market movements.

Last updated: 02 Apr 2026


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