Forced Liquidation (Liquidation) Explanation
To ensure the stability of the trading system and the controllable risk of user accounts, when your position or the overall account equity (including available balance + unrealized profit and loss) falls to or below the platform's required maintenance margin level, the system will trigger a forced liquidation.
Trigger Conditions
The conditions for the system to trigger forced liquidation are as follows:
The account balance (standard contract account balance + unrealized profit and loss) is lower than the required maintenance margin.
⚠️ Note
When the conditions are triggered, the system will automatically close positions to control risk.
During periods of high volatility, margin ratios may drop suddenly, which can immediately trigger liquidation.
Forced Liquidation Execution Process:
The system/platform detects insufficient account margin;
The platform sends a margin call notification first;
If the user does not respond to the notification in time or if losses increase, causing the account to be unable to maintain positions, the system will automatically execute forced liquidation.
Key Data Users Should Monitor:
Margin usage rate / Available margin (Free Margin)
Unrealized profit and loss
Current leverage ratio and position size
Position mode (Cross Margin / Isolated Margin) and its impact on forced liquidation trigger conditions
Risk Warning:
While leverage trading can magnify profits, it also magnifies losses. If you use high leverage, large positions, or fail to set stop-loss orders, rapid loss expansion could lead to forced liquidation. Please make sure to monitor your account status in real-time and leave sufficient margin buffer based on your risk tolerance.