Liquidation Fee
Updated on:
What is Liquidation
If the contract account balance is insufficient to meet the margin requirement, the system will automatically close your position through forced liquidation. In this case, you may lose all the funds invested in that position.
Fee Timing
When a user's position is liquidated, a certain percentage of liquidation fee will be charged and deposited into the risk guarantee fund reserve, marked as [Liquidation] in the trading history.
Liquidation Fee Calculation
- USDⓈ-Margined Contracts
Liquidation Fee = Notional Value * Liquidation Fee Rate
Notional Value = Contract Quantity * Trading Price
- Coin-Margined Contracts
Liquidation Fee = Notional Value * Liquidation Fee Rate
Notional Value = (Contract Quantity * Contract Face Value) / Trading Price