What is the Auction-Style Liquidation Strategy?

The Auction-Style Liquidation Strategy by CoinEx is an execution mechanism designed to enhance the efficiency of large liquidation orders.

1. Mechanism: The system calculates a target price range based on the current market’s best price and places tiered limit orders within this range. At fixed intervals, the order price is adjusted based on the best price, and new orders are placed. The strategy continues until the orders are executed within the set time limit.

2. Purpose: To ensure that large liquidation orders can be executed within a reasonable timeframe, even when the market is illiquid. This prevents delays in executing large liquidation orders, which could otherwise remain unfilled for an extended period.

If you have a large position that needs to be liquidated, but the market is illiquid, which may prevent the liquidation order from being executed promptly. As such, the Auction-Style Liquidation Strategy acts like an intelligent assistant, placing orders in batches at different prices, helping you complete the transaction within a reasonable time, and mitigating trading risks.

The Auction-style Liquidation Strategy will be applied when

1. [TP/SL] is triggered for the existing position.

2. Close all positions with the [Close All] function.

3. Close all positions at the market price with the [Market Close All] function.

4. [Stop-Market] order is placed as the target price is reached.

Notes

1. When an Auction-Style Liquidation Strategy is in execution, new orders cannot be placed for that trading pair temporarily. Normal operations will resume after the auction liquidation concludes.

2. If forced liquidation or auto-deleveraging (ADL) is triggered during the execution of the auction liquidation strategy, the system will immediately halt the auction liquidation to prioritize the forced liquidation or ADL.