Trigger of Forced Liquidation

To keep these positions open, traders are required to hold a percentage of the value of the position on the exchange, known as the Maintenance Margin percentage.  If you cannot fulfill your maintenance requirement, you will be liquidated.

CoinEx uses Fair Price Marking for the purpose of avoiding liquidation due to illiquid markets or manipulation. A liquidation will be triggered when the Fair price (or Mark price) is lower (Longs) or higher (Shorts) than the liquidation price.

Liquidation Price:

Definition: The triggered price of liquidation. If the mark price is lower than this price (longs), or higher than this price(shorts), the contract will start the liquidating process.

Bankruptcy Price: it refers to the price when all the margin of current position is deducted, or in other words, the margin reaches 0.

Calculation:

Longs:
Liquidation price = Avg. Open Price / (1 + Initial Margin Rate - Maintenance Margin Rate)

Bankruptcy price = Avg. Open Price / (1 + Initial Margin Rate)

Shorts:
Liquidation price = Avg. Open Price / (1 - Initial margin rate + Maintenance margin rate) Bankruptcy price = Avg. Open Price / (1 - Initial margin rate)

where
(Cross Margin) Initial margin rate = (Balance + Initial margin) / Position value (Isolated Margin) Initial margin rate = 1/Leverage