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Introduction of Liquidation

  • Updated

The USDT-Margined perpetual contract implements a matching mechanism, and orders are matched and traded in the order of price priority and time priority. When the margin rate of the contract position is ≤100%, the position will trigger forced liquidation.

The forced liquidation condition of the contract is subject to the margin rate. When the margin rate of the contract position is ≤100%, it will trigger a position reduction or liquidation.

Liquidation price calculation:

  • Based on:
    • Margin rate <= 100% triggers liquidation
    • Cross Margin rate = (Account balance + ∑Profits) / ∑(Maintenance margin + Transaction fee)
    • Isolated Margin Rate = (Margin Balance + Profit)/ (Maintenance Margin + Transaction Fee)
  • Isolated Margin
    • USDT-margined contract
      • Long position: Liquidation Price = (Margin balance - |amount| * average opening price) / ( |amount|* (Maintenance margin rate + liquidation transaction fee rate - 1))
      • Short position: Liquidation Price = (Margin balance + |amount| * average opening price) / ( |amount| * (Maintenance margin rate + liquidation transaction fee rate + 1))
  • Cross Margin：
    • Single position, USDT-Margined contract
      • Long position: Liquidation Price = (Account balance - |amount| * average opening price) / ( |amount|* (Maintenance margin rate + liquidation transaction fee rate - 1))
      • Short position: Liquidation Price = (Account balance + |amount| * average opening price) / ( |amount| * (Maintenance margin rate + liquidation transaction fee rate + 1))
    • Two or more positions, USDT-Margined contract (The liquidation price involving multiple positions is unknown, the liquidation price is only for reference)
      • Long position: Estimated Liquidation Price = (Account balance +∑(Profit n-Transaction fee n-Maintenance margin n)- |amount| * average opening price) / ( |amount|* (Maintenance margin rate + liquidation transaction fee rate - 1))
      • Short position: Estimated Liquidation Price = (Account balance +∑(Profit n-Transaction fee n-Maintenance margin n) + |amount| * average opening price) / ( |amount| * (Maintenance margin rate + liquidation transaction fee rate + 1))

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