A margin call is an alert that your margin account needs more support. It happens when your equity (what's yours: the value of your investments minus what you've borrowed) falls below the minimum required to keep using margin.
You can resolve it in two ways: by depositing funds or by selling assets.
Why does it happen?
Usually because of a market drop. When your investments lose value, your equity goes down, but the amount you borrowed stays the same.
At Hapi, your equity must stay at least at 30% of the value of your margin positions. That's above the 25% minimum set by FINRA, to give your account an extra cushion. Some volatile stocks and leveraged ETFs require more.
Types of margin calls and how much time you usually have
The time you have depends on the type of call. These are the usual maximum timeframes set by regulation and by our clearing firm, Apex Clearing. They are not guaranteed: depending on market conditions, a call can be due sooner, even the same day.
Type of call | Why it happens | Usual timeframe |
Maintenance call | Your equity falls below Hapi's maintenance requirement (30%, or more for some assets). | By the next business day, and in some cases the same day. |
Concentration call | A large part of your account is in a single stock or in related stocks. It can apply when you've borrowed more than US$100,000. | Generally by the next business day. |
Reg T call (initial margin) | You buy on margin without covering the initial requirement (generally 50% of the purchase price). Hapi's buying power limits are designed to help prevent this call. | Up to 3 business days after the trade. Late payments aren't accepted. |
💡 Our tip: act the same day you get the alert. It's the simplest way to stay in control of your investments.
How to resolve it
Deposit funds to increase your equity.
Sell assets to reduce what you owe. You can sell any position, including ones you didn't buy with margin and your crypto.
While your account is in a margin call
You can't open new positions until it's resolved.
Your crypto doesn't count as collateral for margin.
Good to know
Hapi may sell some or all of your positions before the deadline, without contacting you first, especially when markets are volatile.
You don't get to choose which positions are sold, and you're not entitled to extra time to cover a call.
Margin requirements can change at any time, without prior notice.
How to avoid a margin call
Check your Margin status: the app shows your risk level in real time.
Keep notifications on: we send in-app alerts when your margin buffer is low and an email if you fall below the maintenance requirement.
Act early: if your status moves to Medium, a deposit or a sale can help keep you away from a call.
Use less than your full line: the less margin you use, the bigger your cushion.
Legal disclaimer: Using margin involves risk and is not suitable for all investors. You can lose more money than you deposit. Before using margin, review the Margin Disclosure Statement and your margin agreement. Past performance does not guarantee future results. This content is for informational purposes only and does not constitute advice, a recommendation, or an offer to buy or sell securities. Securities are offered through Hapi Securities, LLC, member FINRA/SIPC; accounts are custodied and cleared by Apex Clearing Corporation. Cryptocurrencies are offered by Hapi Crypto, LLC through Bakkt Crypto Solutions, LLC, not by Hapi Securities, LLC; they are not protected by SIPC or insured by the FDIC.