Forced Liquidation&Liquidation

Forced liquidation instructions
The platform uses a reasonable price marking method to avoid forced liquidation caused by lack of liquidity or market manipulation.

Risk limits also require higher margin levels for larger positions. In this way, the platform's forced liquidation engine can use more margin to effectively close a large number of positions, otherwise these positions are difficult to close safely. Large positions will be gradually forced to close under safe conditions.

If forced liquidation is triggered, the platform will cancel all unfulfilled orders for the contract to release the margin and maintain the position. The orders of other contracts are not affected.

Forced liquidation and explosion process

Forced liquidation in position-by-position mode
In position-by-position mode, when the account margin rate of the position is ≤ 100% (that is, the margin balance is equal to or lower than the position maintenance margin), the position will trigger forced liquidation.
In position-by-position mode, different positions have independent account margin rates, and whether each position triggers forced liquidation is independently judged.

Account margin rate = margin balance of the position / maintenance margin of the position

Note that if the user holds a two-way position in the position-by-position mode, the two-way positions exist independently, and extreme market fluctuations may cause the two-way positions to be forced to close separately.

Forced liquidation in full-position mode
In the full-position leverage mode, all positions share the margin in the account, and the account margin rate is unified. Unrealized profits and losses will be included in the total margin balance. When the margin rate ≤ 100%, forced liquidation will be triggered.

Margin rate of full-position account = total margin of full-position / total maintenance margin of full-position
Total margin of full-position = the money in USDT balance belonging to full-position + the sum of unrealized profits of full-position
Total maintenance margin of account = maintenance margin of all full-position + handling fee

That is, when any one of the full-position positions reaches the forced liquidation price, all full-position positions will be automatically taken over by the forced liquidation system (the principle of forced liquidation is the loss of all full-position positions, and the total profit and loss has been lost to the point that only the maintenance margin + liquidation fee of all full-position positions is left, that is, the total margin of all full-position positions / (maintenance margin of all full-position positions + handling fee) ≤ 100%