Liquidation

Cross-margin trading mode involves two levels of liquidation: position liquidation and portfolio liquidation.

1. Position Liquidation:

   • When the margin ratio of the cross-margin portfolio falls below 110%, any open positions on this portfolio can be liquidated.

2. Portfolio Liquidation:

   • When the margin ratio of the cross-margin portfolio falls below 105%, the entire portfolio will be liquidated.

The Cross Margin Ratio Formula:

$$cross\,margin\,ratio = (adjusted\,equity + unrealized\,PnL) / maintenance\,margin\\$$

$$maintenance\,margin = portfolio\,margin * maintenance\,margin\,ratio (5\%)$$

If a position is liquidated, users can find the record in their order history labeled as "liquidation".