FAQ on Forced Liquidation

1. What is Forced Liquidation?
Forced liquidation occurs when the equity in your margin account falls below a certain level. To prevent further losses, the platform will automatically close your positions.

2. When will forced liquidation be triggered?
When the risk ratio ≥ 100%, it means your account equity is insufficient to cover the maintenance margin and potential liquidation fees, and the system will trigger forced liquidation. Always monitor your risk ratio.

• Risk Ratio = Total Maintenance Margin / (Account Equity – Unrealized PnL)

• Position Maintenance Margin = (Entry Price × Position Size) × Maintenance Margin Rate

• Different position notional values correspond to different maintenance margin rates.

• Position Notional Value = (Entry Price × Position Size)

You can check the maintenance margin rate tiers for each token on the trading page: [Contract Info] → [Position Tier Info].

Example:
ETH long position, entry price = 1000 USDT, leverage = 10x, position size = 10 ETH.
Required maintenance margin = 1000 × 10 × 0.5% = 50 USDT.
If available margin ≤ 50 USDT, forced liquidation will be triggered.

3. What is the process of forced liquidation?
Forced liquidation involves three stages: Cancel Orders, Reduce Positions, and Forced Liquidation.

• Cancel Orders: When risk exceeds a certain level but hasn’t reached the pre-reduction threshold, the system cancels some open orders to restore account safety.

• Reduce Positions: Step-by-step partial liquidation. After partially closing, if the new margin requirements are met, liquidation stops.

• Forced Liquidation: Positions continue to be reduced until fully liquidated.

4. Where can I check the liquidation price?
The estimated liquidation price is displayed below each position on the Positions page. Please note this is only an estimate — the actual liquidation price depends on the mark price when the risk ratio ≥ 100%.

5. What is the Mark Price?
Liquidation is based on the mark price, not the last price or index price. You can view mark price history under [Contract Info] on the order page.

6. How is the liquidation price calculated?
Besides the estimated liquidation price shown on the Positions page, you can calculate it using the calculator:
[---] → [Calculator] → [Liquidation Price].
Enter leverage, entry price, margin mode, and other parameters to get the result.

Please note:

• In Cross Margin Mode, all positions share the available margin in the futures account. Unrealized PnL cannot offset each other.

• In Isolated Margin Mode, margin is allocated only to the current position and does not affect others.

• For single-asset contracts with both long and short positions, the liquidation price shown will be the one closest to the current price.

• For multi-asset contracts, the estimated liquidation price is for reference only. Always rely on the cross margin risk ratio as the standard.

7. What fees are incurred during forced liquidation?
When a position is liquidated, unless it falls into bankruptcy, part of the assets used to maintain the position will be charged as a liquidation fee and paid to Global HibtHub.

• Bankruptcy Position: If the trader’s collateral is less than the required maintenance margin, the position is liquidated. If, after liquidation, the trader’s balance is below 0 or the position cannot be liquidated, it will be considered a bankruptcy position.

Liquidation fees are recorded in the trader’s futures transaction history as “Liquidation.” These fees are injected into the Insurance Fund, which covers any account shortfalls (negative balances) caused by liquidation.
You can check the Insurance Fund details via [Contract Info] → [Insurance Fund].