Forced Liquidation (Liquidation) Explanation To ensure the stability of the trading system and keep account risks under control, when a position or your account as a whole is in an unrealized loss state and its account equity (including available balance + unrealized profit and loss) falls to or below the maintenance margin level specified by the platform, the system will trigger forced liquidation.
Trigger Conditions The conditions under which the system triggers forced liquidation are as follows: Account funds (TradFi contract account balance + unrealized profit and loss) fall below the maintenance margin requirement.
⚠️ Explanation When the conditions are triggered, the system will automatically close positions to control risk. During periods of significant market volatility, the margin ratio may fall sharply in an instant, thereby immediately triggering liquidation.
Forced Liquidation Process:
- The system/platform detects that the account has insufficient margin;
- The platform first sends a margin call notification;
- If the user does not respond to the notification in time, or losses increase to the point that the account can no longer maintain the position, the system will automatically execute forced liquidation.
Key Data Users Should Monitor:
- Margin utilisation rate / Free Margin
- Unrealized profit and loss
- Current leverage and position size
- Whether the position mode (cross margin / isolated margin) affects the forced liquidation trigger conditions
Risk Reminder: While leveraged trading can amplify gains, it can also amplify losses. If you use high leverage, take positions that are too large, or fail to set a stop loss, rapidly increasing losses may result in forced liquidation. Be sure to act according to your risk tolerance, monitor your account status in real time, and maintain a sufficient margin buffer.