Liquidation
Liquidation, also known as forced closure, is a protective mechanism triggered when the value of a user's position in a particular currency falls below the minimum maintenance margin.Basic Fields and Their Meanings
Name | Meanings |
Maintenance Margin | In an account's particular currency assets, this is the amount of margin for the current perpetual contract positions. There is generally a minimum requirement for the maintenance margin. If it falls below this minimum, it triggers a forced liquidation. |
Margin Ratio | Margin Ratio = (Initial Margin + Unrealized Profit/Loss in the Position) / (Maintenance Margin Required for the Position Size + Liquidation Fees). The platform's current minimum margin ratio is 0.50%. |
Minimum Maintenance Margin = Position Size * Mark Price * Maintenance Margin Ratio + Estimated Liquidation Fees.
The typical maintenance margin ratio is usually around 0.50%.
After liquidation of a specific currency, the balance in the user's Exchange Wallet and other positions will not be affected.
Case
| Trading Pair | BTC/USD |
|---|---|
Long/Short | Long |
Margin（$） | 1,000.00 |
Entry Price （$） | 42,704.00 |
Leverage | 5.00 x |
Size | 0.117 |
Mark Price（$） | 41382.19 |
MaintenanceMarginRatio | 0.50% |
TradingFeeRate | 0.08% |
Est. Liq. Price（$） | 34,356.26 |
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