Maintenance Margin and Forced Liquidation Instructions
In order to ensure market stability and the safety of user transactions, the platform hereby explains the rules regarding maintenance margin and forced liquidation. Please ensure you understand and manage your positions reasonably.
I. What is Maintenance Margin?
Maintenance margin is the minimum amount of margin a user must maintain while holding a position. If the account margin falls below this level, forced liquidation may be triggered.
Calculation Method (Taking USDT-Margined Contracts as an example):
• Isolated Margin Mode: Only affects the margin of that specific position.
• Long: Liquidation Price = (Position Value - (Position Margin - Maintenance Margin - Fee)) / Position Quantity • Short: Liquidation Price = (Position Value + (Position Margin - Maintenance Margin - Fee)) / Position Quantity
• Cross Margin Mode: Affects the entire contract account.
• Long: Liquidation Price = (Position Value - (Account Balance - Maintenance Margin - Fee)) / Position Quantity
• Short: Liquidation Price = (Position Value + (Account Balance - Maintenance Margin - Fee)) / Position Quantity
II. What is Forced Liquidation?
When the available margin in the account falls below the maintenance margin requirement, the system will automatically trigger forced liquidation to prevent account debt. • Long: Triggered when the Mark Price is lower than the Liquidation Price. • Short: Triggered when the Mark Price is higher than the Liquidation Price.
Influencing Factors: • Maintenance Margin Rate: May vary depending on position size and leverage. • Market Volatility: Severe fluctuations may cause the liquidation price to shift.
III. How to Reduce Forced Liquidation Risk?
- Monitor market volatility: Pay attention to market changes, especially during high volatility periods.
- Allocate margin reasonably: Avoid excessively low account margin by retaining adequate funds.
- Use risk management tools: Set stop-loss, use isolated margin mode, or adjust leverage to reduce risk.
IV. Special Notes • Maintenance margin will not be refunded after liquidation, as it is used to prevent account negative equity risks. • In extreme market conditions, there may be deviations in the liquidation price; users are advised to manage risks accordingly. • For any questions, please contact platform customer service for assistance.