Overview

In multi-currency cross margin mode and portfolio margin mode, the risk of the unified account is evaluated using the initial margin ratio (IMR) and maintenance margin requirement (MMR). Liquidation is triggered when the MMR ≥ 95%.

IMR = Initial margin / Effective account margin
MMR = Maintenance margin / Effective account margin

During liquidation, users can't operate their trading accounts. The platform will take the most efficient risk-reduction actions until liquidation ends and the account returns to a safe state, after which users can use their trading accounts again.

Multi-currency cross margin: Liquidation is triggered when MMR ≥ 95%. Liquidation ends when MMR ≤ 90%, and the account returns to normal.
Portfolio margin: Liquidation is triggered when MMR ≥ 95%. Liquidation ends when MMR ≤ 85%, and the account returns to normal.

Multi-currency cross margin mode liquidation

In multi-currency cross margin mode, positions and orders use margin individually. PnL from different derivatives positions can offset each other. Liquidation is triggered when the account maintenance margin ratio reaches 95%.

Liquidation Process

	Margin conditions	Rules
Initial margin ratio (IMR)	>= 100%	Orders that increase margin usage can't be placed (including spot margin and derivatives orders). Flexible Savings subscriptions can't be made.
Maintenance margin ratio (MMR)	40% <= MMR < 80%	40%–60%: First risk warning 60%–80%: Second risk warning
	80% <= MMR < 95%	Futures opening orders, leveraged borrowing orders, and spot buy orders for currencies with lower collateral ratios are canceled. Flexible Savings subscriptions can't be made. Futures position-reducing orders and spot buy orders for currencies with higher collateral ratios can be placed.
	MMR >= 95%	If MMR still exceeds 95%, the liquidation process is triggered.
		Step 1: Cancel all open orders All orders, including strategy orders, are canceled and new ones can't be placed.
		Step 2: Redeem Flexible Savings All Flexible Savings subscriptions will be redeemed. If redemption fails, the insurance fund will pay the corresponding Flexible Savings amount (excluding unpaid interest) to the user, and the user will transfer their Flexible Savings subscriptions to the insurance fund.
		Step 3: Forced liability repayment During forced repayment Liability currencies are sorted by liquidity from highest to lowest (by discount rate, with USDT liabilities processed first), and the required buy amount for each is calculated. Positive asset currencies are sorted by liquidity from highest to lowest, and the required sell amount for each is calculated to repay liabilities and reduce the margin ratio. Liquidation fees are charged at a fixed rate on both assets and liabilities, except if either asset or liability is in USDT. No trading fees are charged.
		Step 4: Futures liquidation To release margin as efficiently as possible while reducing the impact on other positions, positions with higher maintenance margin will be liquidated first. The system first attempts to fill liquidation orders in the market. If liquidity is insufficient and liquidation fails, the platform will take over the positions to be liquidated. Market-filled orders are charged trading fees at the taker fee rate, while positions taken over by the system account are not. The total liquidation fee won't exceed the maintenance margin released after the position is closed.
		Step 5: Forced liability repayment After futures positions are closed, if any USDT liabilities have been incurred, the same forced repayment process described in Step 3 will be carried out again.
	MMR <= 90%	During the above forced liquidation steps, if the user's MMR has fallen back below 90%, liquidation will end and the account will return to normal status.
	Account equity ≤ 0	The user's account has negative equity and is taken over by the platform.

Liquidation fee formula for multi-currency cross margin mode

Liquidation method	Order closing price	Liquidation fee formula
Market liquidation	Buy order: Mark price × (1 + Ratio%) Sell order: Mark price ×(1 - Ratio%)	Liquidation fee = min[max(Maintenance margin released by position reduction - Actual slippage for filled order, 0), Filled value × (Liquidation fee rate - Taker fee)] Actual slippage for filled order = (filled price - mark price) × Filled amount × Order side; (Buy order is 1, Sell order is -1)
Platform takeover	Takeover price = Mark price	Liquidation fee = min(Maintenance margin released by position reduction, Filled value × Liquidation fee

*Trading fees are linked to a user's tier.

Portfolio margin mode liquidation

Portfolio margin mode evaluates the risk of the entire portfolio. When a user's MMR reaches 95%, liquidation will be triggered. During futures liquidation, the position with the largest loss in the risk matrix is selected for partial closing. Liquidation ends when MMR falls to 85%.

Forced liquidation process

	Margin Conditions	Rules
Initial margin ratio (IMR)	>= 100%	Orders that increase margin usage can't be placed (including spot margin and derivatives orders). Flexible Savings subscriptions can't be made.
Maintenance margin ratio (MMR)	40% <= MMR < 80%	40%–60%: First risk warning 60%–80%: Second risk warning
	80% <= MMR < 95%	All orders that don't reduce risk after being filled are canceled (including spot margin and derivatives orders, and RFQ orders that have started settlement).
	MMR >= 95%	If MMR still exceeds 95%, the liquidation process is triggered.
		Step 1: Cancel all open orders All orders, including strategy orders, are canceled and new ones can't be placed.
		Step 2: Redeem Flexible Savings All Flexible Savings balance will be redeemed. If redemption fails, the insurance fund will pay the corresponding Flexible Savings amount (excluding unpaid interest) to the user, and the user will transfer their Flexible Savings subscriptions to the insurance fund.
		Step 3: Forced liability repayment During forced repayment, Liability currencies are sorted by liquidity from highest to lowest (by discount rate, with USDT liabilities processed first), and the required buy amount for each is calculated. Positive asset currencies are sorted by liquidity from highest to lowest, and the required sell amount for each is calculated to repay liabilities and reduce the margin ratio. Liquidation fees are charged at a fixed rate on both assets and liabilities, except if either asset or liability is in USDT. No trading fees are charged. *This process is the same as the forced liability repayment process for multi-currency cross margin mode.
		Step 4: Derivatives liquidation First, the worst-case scenario in the risk matrix is identified. The futures position with the lowest PnL in this scenario (which also contributes the most to margin) is then partially liquidated. To ensure efficiency and fairness, the platform submits an IOC order to the market for perpetual and delivery positions. Any remaining unclosed positions are taken over by the platform. A closing fee is charged for positions closed through the market liquidation order. After each partial closing, the risk matrix is refreshed and the algorithm continues processing the futures position with the highest contribution to margin in the risk matrix at that time. The closing ratio for a single futures position is generally 12.5% (subject to risk control adjustments). If the remaining position is below the minimum closing amount, the position will be fully closed.
		Step 5: Forced liability repayment After derivatives positions are closed, if any USDT liabilities have been incurred, the same forced repayment process described in Step 3 will be carried out again.
	MMR <= 85%	During the above forced liquidation steps, if the user's MMR has fallen to 85%, liquidation will end and the account will return to normal status
	Account Equity ≤ 0	The user's account has negative equity and is taken over by the platform

Liquidation fee formula for portfolio margin mode

Liquidation method	Futures Liquidated	Closing Order Price	Liquidation Fee Formula
Market liquidation	Perpetual and Delivery Futures	Buy order: mark price × (1 + ratio%) Sell order: mark price × (1 - ratio%)	Liquidation fee = min{Account equity, max[Filled value × (Liquidation fee rate - Taker fee) - max(Filled price - Mark price, 0) × Filled amount × Position side, 0]}
Platform takeover	Perpetual and Delivery Futures	Takeover price = mark price	Liquidation fee = min(Account equity, Filled value × Liquidation fee rate)

*Trading fee rates are linked to a user's tier

View liquidation history

Users can view their liquidation orders in their transaction history. Filter by "Liquidation repayment - sell", "Liquidation repayment - buy", and "Liquidation fee" to view transaction records for spot liability repayment and futures liquidations.

	Meaning	Note
Liquidation repayment - sell	Amount of positive assets sold	Calculated in units of the positive asset. Includes the liquidation fee amount for the positive asset.
Liquidation repayment - buy	Amount of negative assets bought	Calculated in units of the negative asset. Excludes the liquidation fee amount for the negative asset.
Liq. fee	Futures liquidation fee	Includes liquidation fees generated from market liquidation and takeover.

FAQ

1. What is the difference between liquidation in multi-currency cross margin mode and portfolio margin mode?

The maintenance margin threshold for exiting liquidation is different. Portfolio margin mode exits when MMR ≤ 85%, while multi-currency cross margin mode exits when MMR ≤ 90%.
Both use partial closing to gradually liquidate derivatives futures, but the steps are different. Multi-currency margin liquidates the position with the highest current maintenance margin usage, submits multiple orders to the market, and then takes over any remaining open positions. Portfolio margin directly identifies the position with the largest current loss in the worst-case scenario of the risk matrix, partially closes it, and takes over any remaining open positions after each market order submission.
Multi-currency cross margin doesn't support options trading, so there is no options liquidation. When options are liquidated under portfolio margin, no orders are submitted to the market. Instead, the positions are taken over directly.

2. How do derivatives liquidation fees differ between the two modes?
For perpetual and delivery futures, the liquidation fee rate is the same under both margin modes. However, the liquidation fee charged each time under multi-currency cross margin won't exceed the maintenance margin released as calculated for that liquidation, while the liquidation fee charged each time under portfolio margin won't exceed the account's current effective margin.

3. How are Flexible Savings subscriptions handled during liquidation?
Flexible Savings subscriptions are handled in the same way under both margin modes. Flexible Savings will be redeemed first. If the user's redemption fails, the insurance fund will pay the corresponding Flexible Savings amount (excluding unpaid interest) to the user, and the user will transfer their Flexible Savings subscriptions to the insurance fund. Two Flexible Savings swap transaction records will also be generated.

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