Future Margin quesiton

Let say you are holding a long futures position, not the MIS futures buy.

Whereas -
Span is 36,300, Exposure is 23,400 and account Margin available is 3,365.4 (cash)
If the stock goes down and the loss is greater than the cash, do you need to add more cash to avoid auto square off. OR it will take from the Exposure amount ?

Auto square off of your FO carry position will happen only when you lose the entire exposure margin and the loss could enter your span margin. As long as you have any amount of the exposure margin left, any losses greater than available cash in your trading account will take your account into a negative balance and an interest of 0.05% per day will be charged on the debit balance. If you want to avoid paying interest on debit, then you should add funds to ensure there is always a positive cash balance in your account.

Yes, that was my understanding. But than, Even if the exposure margin is almost intact. Why would you get email from Zerodha like …
Your Margin utilization has reached 105.70% …

That is because your account has indeed used up a margin of over 100% if you lose exposure margin and your account goes to debit. The email is to caution you to add funds to avoid interest charges on debit.

I don’t know, than I guess it is a reporting error. It is really hard to get around Kite. Infact I got an email middle of night about margin reach above 100%, Though there is no question of -ve balance at all.