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Changes in collateral assets due to the changes in unrealized PnL of other cross margin positions affected by price fluctuations.
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Opening of other positions uses up partial funds in the account.
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Transferring funds into the account or transferring funds out of the account.
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Deductions of trading fees incurred from opening and closing positions.
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The settling of funding fees (including paying or collecting funding fees).
In isolated margin mode
Each contract has its own separate margin for the position, and the margin of different contracts does not affect each other. Once the margin ratio of a position reaches 100%, that position will be liquidated, but other positions will not be affected.
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The user adjusts (increases or reduces) the margin for the open position.
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The settlement of funding fees (including paying or collecting funding fees).
Margin ratio (Isolated) = Isolated maintenance margin / （Isolated Position Margin + Isolated Unrealized PnL）
Margin ratio (Cross) = Σ Cross maintenance margin / （Balance - Σ Isolated Position Margin + Cross Unrealized PnL
Note:
To reduce unnecessary liquidations, USDT-margined contracts use mark price as another reference price for liquidation. That is, when the system determines whether to trigger a liquidation or not, it must satisfy that the margin ratios calculated by the mark price are more than or equal to 100%. Using mark price for the calculation can lower the risk of liquidations caused by several abnormal last prices, which can lead to serial liquidations.
During the forced liquidation process, Toobit does not charge a liquidation fee.
What is Bankruptcy Price?
The bankruptcy price is the price at which the margin drops to zero. When the margin ratio is more than or equal to 100%, the system will place an order at the bankruptcy price to liquidate the position. Since the whole process doesn't go through the matching system, the bankruptcy price will not be shown on the K-line and the bankruptcy price does not equal the actual liquidation price.
What is Risk Guarantee Fund?
When forced liquidation is executed at the bankruptcy price, the following will occur:
- If the position can be executed at a price better than the bankruptcy price in the market, the surplus generated from the liquidation will be added to the Risk Guarantee Fund.
- If the position cannot be executed at a price better than the bankruptcy price, the resulting deficit will be covered by the Risk Guarantee Fund. When the Risk Guarantee Fund is insufficient or rapidly depleted, auto-deleveraging (ADL) will be triggered.
Formula：
Margin ratio (Isolated) = Isolated maintenance margin / （Isolated Position Margin + Isolated Unrealized PnL）
- Isolated maintenance margin = Entry Price * Amount * maintenance margin ratio
- Isolated Position Margin = Entry Price * Amount / Leverage
- Long Position Unrealized PnL = （ Mark Price - Entry Price）* Amount
Therefore，
Isolated maintenance margin =4,200 * 10 * 1%= 420 USDT
Isolated Position Margin =4200 * 10 / 50= 840 USDT
Long Position Unrealized PnL =(4,157 - 4,200) * 10= -430 USDT
Margin ratio (Isolated) =[420/(840 -430]*100%=102.43%
At this point, the margin ratio is ≥100%, triggering forced liquidation. Eve's ETH/USDT long position will be liquidated when the mark price reaches 4,157 USDT
2. Example for liquidation in cross margin mode:
Assume Tom has 350 USDT in his Futures account, opened a long position of 20 amount ETH/USDT at the price of 1,600 USDT. The leverage is 100x, so the maintenance margin ratio is 0.50%. Without considering the fee and no isolated postions, what will happen to Tom’s position when the mark price of ETH/USDT swaps reaches 1,598 USDT?
Formula：
Margin ratio (Cross) = Σ Cross maintenance margin / （Balance - Σ Isolated Position Margin + Cross Unrealized PnL
- Σ Cross maintenance margin = Entry Price * Amount / Leverage
- Long Position Unrealized PnL = （Mark Price - Entry Price）* Amount
Therefore;
Σ Cross maintenance margin = 1,600*20/100=320 USDT
Long Position Unrealized PnL = (1,598 - 1,600）*20= - 40 USDT
Margin ratio (Cross) = [320/(350-40)]*100%=103.22%
At this point, the margin ratio is ≥100%, triggering forced liquidation. Tom's ETH/USDT long position will be liquidated when the mark price reaches 1,598 USDT. If the system detects that there are no pending orders and no long and short positions of the same currency to close and offset with each other, the user's positions will be liquidated in the order of unrealized PnL (the position with the greatest loss will be liquidated first).
(The above content is for explanation only, the specific settings or related changes shall subject to the latest announcement)
Toobit reserves the right in its sole discretion to amend or cancel this announcement at any time and for any reason without prior notice.