40% <= MMR <= 80%

40%–60%: First risk warning 60%–80%: Second risk warning

 

80% <= MMR <= 95%

Cancel contract opening orders, leveraged borrowing orders, and spot trading orders for buying assets with lower collateral rates. Subscription to Cash Treasure (cash management product) is not allowed. Contract position reduction orders and spot trading orders for buying assets with higher collateral rates are permitted.

 

MMR > 95%

If MMR still exceeds 95%, the liquidation process is triggered.

 

 

Step 1: Cancel All Pending Orders Cancel all orders and strategy orders; prohibit placing any new orders.

 

 

Step 2: Redeem Cash Treasure Redeem the entire Cash Treasure balance. If the user’s redemption fails, the insurance fund will pay the equivalent amount of Cash Treasure (excluding uncollected interest) to the user, and the user will transfer the Cash Treasure shares to the insurance fund. This will generate two transaction records for the Cash Treasure swap.

 

 

Step 3: Forced Debt Repayment During forced debt repayment, liabilities are sorted by currency liquidity (based on discount rate, with USDT liabilities prioritized). Liabilities with better liquidity are liquidated first. Calculate the amount of each liability currency to be bought. Positive assets are sorted by liquidity from best to worst, prioritizing the liquidation of positions in assets with better liquidity. Calculate the amount of each positive asset to be sold to repay liabilities, promptly reducing the margin rate. Both assets and liabilities are subject to a liquidation fee but not a trading fee. However, if either the asset or liability is in USDT, no liquidation fee is charged. The liquidation fee is charged at a fixed rate.

 

 

Step 4: Contract Liquidation To release margin as efficiently as possible while minimizing impact on other positions, prioritize liquidating positions with higher maintenance margins. Contract liquidation will first attempt to process orders in the market. If liquidity is insufficient and liquidation fails, the platform will take over the positions requiring liquidation. Orders executed in the market will incur a taker fee based on the user’s rate, while positions taken over by the system account will not incur a trading fee. The total liquidation fee charged will not exceed the maintenance margin released after market closure, to ensure account safety.

 

 

Step 5: Forced Debt Repayment After contract liquidation, if USDT liabilities remain, the same forced debt repayment process as in Step 3 will be followed.

 

MMR <= 90%

During the above steps, if the account’s Maintenance Margin Rate drops to 90%, liquidation will cease, and the account will return to a normal state.

 

Account Equity <= 0

The user’s account experiences a margin call and is taken over by the platform.

Buy Order: Mark Price * (1 + Percentage%) 

Sell Order: Mark Price * (1 - Percentage%)

min[max(Maintenance Margin Released from Liquidation - Actual Slippage of Transaction, 0), Transaction Value * (Liquidation Fee Rate - Taker Fee Rate)]; Actual Slippage of Transaction = (Transaction Price - Mark Price) * Transaction Quantity * Order Direction; (Buy Order = 1, Sell Order = -1)

Takeover Price = Mark Price

min(Maintenance Margin Released from Liquidation, Transaction Value * Liquidation Fee Rate)

 

>= 100%

Unable to place orders that increase margin occupation (including spot leverage and derivative orders). Subscription to Cash Treasure (cash management product) is not allowed.

40% <= MMR <= 80%

40%–60%: First risk warning 60%–80%: Second risk warning

 

85% <= MMR <= 95%

Cancel all orders that are not marked as risk-reducing (with the backend "risk reduce" tag), including spot leverage, derivative orders, and RFQ orders that have started settlement.

 

MMR > 95%

If MMR still exceeds 95%, the liquidation process is triggered.

 

 

Step 1: Cancel All Pending Orders Cancel all orders and strategy orders; prohibit placing any new orders.

 

 

Step 2: Redeem Cash Treasure Redeem the entire Cash Treasure balance. If the user’s redemption fails, the insurance fund will pay the equivalent amount of Cash Treasure (excluding uncollected interest) to the user, and the user will transfer the Cash Treasure shares to the insurance fund. This will generate two transaction records for the Cash Treasure swap.

 

 

Step 3: Forced Debt Repayment During forced debt repayment, liabilities are sorted by currency liquidity (based on discount rate, with USDT liabilities prioritized). Liabilities with better liquidity are liquidated first. Calculate the amount of each liability currency to be bought. Positive assets are sorted by liquidity from best to worst, prioritizing the liquidation of positions in assets with better liquidity. Calculate the amount of each positive asset to be sold to repay liabilities, promptly reducing the margin rate. Both assets and liabilities are subject to a liquidation fee but not a trading fee. However, if either the asset or liability is in USDT, no liquidation fee is charged. The liquidation fee is charged at a fixed rate. This process is consistent with the forced debt repayment process in cross-currency margin.

 

 

Step 4: Derivative Liquidation First, identify the worst-case scenario in the risk matrix (i.e., the scenario with the largest loss). Then, identify the contract with the smallest profit/loss (i.e., the one contributing the most to the margin) in this scenario and partially liquidate that contract. To ensure efficiency and fairness, for perpetual and delivery positions, the platform will place an Immediate-or-Cancel (IOC) order in the market once. Any remaining unliquidated positions will be taken over by the platform. For positions liquidated in the market, the platform will charge a liquidation trading fee. After each partial liquidation, the risk matrix is refreshed, and the algorithm will target the contract contributing the most to the risk matrix at that point for further processing. The liquidation proportion for a single contract follows system configurations. If the remaining position is less than the minimum liquidation amount, the entire position will be liquidated.

 

 

Step 5: Forced Debt Repayment After contract liquidation, if USDT liabilities remain, the same forced debt repayment process as in Step 3 will be followed.

 

MMR < 85%

During the above steps, if the account’s Maintenance Margin Rate drops to 85%, liquidation will cease, and the account will return to a normal state.

 

Equity <= 0

The user’s account experiences a margin call and is taken over by the platform.

Perpetual and Delivery

Buy Order: Mark Price * (1 + Percentage%) Sell Order: Mark Price * (1 - Percentage%)

Liquidation Fee = min { Account Effective Margin, max [Transaction Value * (Liquidation Fee Rate - Taker Tier Fee) - max(Transaction Price - Mark Price) * Transaction Quantity * Direction, 0] }

Perpetual and Delivery

Takeover Price = Mark Price

min(Account Effective Margin, Transaction Value * Liquidation Fee Rate)

 

Quantity of positive assets sold

Measured in units of positive assets (including the quantity of liquidation fees for positive assets).

Quantity of negative assets bought

Measured in units of negative assets (excluding the quantity of liquidation fees for negative assets).

Liquidation fee for contracts

Includes liquidation fees incurred from market liquidation and platform takeover.