diff --git a/CHANGELOG.md b/CHANGELOG.md
index 8dd85ed9b..9da9b5348 100644
--- a/CHANGELOG.md
+++ b/CHANGELOG.md
@@ -13,6 +13,7 @@ and this project adheres to [Semantic Versioning](https://semver.org/spec/v2.0.0
 
 ### Fixes
 
+- program: add add update_liquidation_margin_buffer_ratio ([#695](https://github.com/drift-labs/protocol-v2/pull/695))
 - program: account for fee pool when settling positive pnl ([#687](https://github.com/drift-labs/protocol-v2/pull/687))
 - sdk: fix bug which incorrectly calculated leverage after trade for a market with no position but short orders open
 
diff --git a/programs/drift/src/instructions/admin.rs b/programs/drift/src/instructions/admin.rs
index eeca06ad5..0d34c5bf7 100644
--- a/programs/drift/src/instructions/admin.rs
+++ b/programs/drift/src/instructions/admin.rs
@@ -1937,6 +1937,14 @@ pub fn handle_update_liquidation_duration(
     Ok(())
 }
 
+pub fn handle_update_liquidation_margin_buffer_ratio(
+    ctx: Context<AdminUpdateState>,
+    liquidation_margin_buffer_ratio: u32,
+) -> Result<()> {
+    ctx.accounts.state.liquidation_margin_buffer_ratio = liquidation_margin_buffer_ratio;
+    Ok(())
+}
+
 pub fn handle_update_oracle_guard_rails(
     ctx: Context<AdminUpdateState>,
     oracle_guard_rails: OracleGuardRails,
diff --git a/programs/drift/src/lib.rs b/programs/drift/src/lib.rs
index 3803a504f..5c34d7275 100644
--- a/programs/drift/src/lib.rs
+++ b/programs/drift/src/lib.rs
@@ -933,6 +933,13 @@ pub mod drift {
         handle_update_liquidation_duration(ctx, liquidation_duration)
     }
 
+    pub fn update_liquidation_margin_buffer_ratio(
+        ctx: Context<AdminUpdateState>,
+        liquidation_margin_buffer_ratio: u32,
+    ) -> Result<()> {
+        handle_update_liquidation_margin_buffer_ratio(ctx, liquidation_margin_buffer_ratio)
+    }
+
     pub fn update_oracle_guard_rails(
         ctx: Context<AdminUpdateState>,
         oracle_guard_rails: OracleGuardRails,
diff --git a/sdk/src/adminClient.ts b/sdk/src/adminClient.ts
index 2d98bdd32..e65d8a139 100644
--- a/sdk/src/adminClient.ts
+++ b/sdk/src/adminClient.ts
@@ -787,6 +787,20 @@ export class AdminClient extends DriftClient {
 		);
 	}
 
+	public async updateLiquidationMarginBufferRatio(
+		updateLiquidationMarginBufferRatio: number
+	): Promise<TransactionSignature> {
+		return await this.program.rpc.updateLiquidationMarginBufferRatio(
+			updateLiquidationMarginBufferRatio,
+			{
+				accounts: {
+					admin: this.wallet.publicKey,
+					state: await this.getStatePublicKey(),
+				},
+			}
+		);
+	}
+
 	public async updateOracleGuardRails(
 		oracleGuardRails: OracleGuardRails
 	): Promise<TransactionSignature> {
diff --git a/sdk/src/idl/drift.json b/sdk/src/idl/drift.json
index 509c47f7a..36b6d8e38 100644
--- a/sdk/src/idl/drift.json
+++ b/sdk/src/idl/drift.json
@@ -4098,6 +4098,27 @@
         }
       ]
     },
+    {
+      "name": "updateLiquidationMarginBufferRatio",
+      "accounts": [
+        {
+          "name": "admin",
+          "isMut": false,
+          "isSigner": true
+        },
+        {
+          "name": "state",
+          "isMut": true,
+          "isSigner": false
+        }
+      ],
+      "args": [
+        {
+          "name": "liquidationMarginBufferRatio",
+          "type": "u32"
+        }
+      ]
+    },
     {
       "name": "updateOracleGuardRails",
       "accounts": [