In Australia, Beaufort Fiduciaries Pty Ltd (ACN 162 139 871, AFSL No. 545124) provides wholesale clients with access to derivatives where the underlying assets are digital assets. Derivatives are complex, regulated financial products that are difficult to understand and may not be suitable for inexperienced investors. For eligibility, terms and conditions click here. Krak Pay is offered by Bit Trade Australia Pty Ltd (ACN 163 237 634), Authorised Representative of Flexewallet Pty Ltd (AFSL 448066). This information is general in nature and does not take into account your personal objectives, financial situation or needs. You should consider whether it is appropriate for you and read the relevant disclosure documents before making any decision.

Trading Rules: Liquidation Process (Unified Wallet)

Last updated: December 9, 2025

Overview

The Unified Wallet integrates both spot and futures trading, offering streamlined balance and liquidation management. Below are key rules and procedures governing liquidation scenarios.

  • Initial Margin: Minimum collateral to open a position.
  • Maintenance Margin: Minimum collateral to maintain a position.
  • Liquidation Margin: Threshold triggering liquidation.
  • Cross Margin: Positions share collateral, enabling profit and loss (PnL) offset.
  • Isolated Margin: Each position has dedicated collateral.

Liquidation initiates automatically when:

  • Liquidation Margin is exhausted (Available Liquidation Margin ≤ 0).
  • Maintenance Margin is breached during active liquidation (Available Maintenance Margin ≤ 0).

Non-ECP Liquidation occurs post-grace period (specific user eligibility).

When multiple liquidation scenarios apply, priority is:

  1. Non-ECP Spot Liquidation
  2. Derivatives Liquidation
    (Triggered when derivatives margin requirement ≥ spot requirement or if derivatives-only margin exists)
  3. Unified Spot Liquidation
    (If liquidation margin is depleted and spot margin utilized)

For derivatives-specific liquidation procedures, see the Equity Protection Process.

1. Cross Margin Liquidation

  • Trigger: Available Margin + Net Unrealized Cross Margin PnL - Isolated Initial Margin < Cross Maintenance Margin
  • Action: Identifies all cross-margin positions and liquidates based on net collateral deficit.

2. Isolated Margin Liquidation

  • Trigger: Position-specific collateral insufficient against maintenance margin.
  • Action: Liquidates only the affected isolated position, no impact on other positions.

3. Account-Wide Liquidation

  • Trigger: Total account collateral insufficient (Available Margin + Total Unrealized PnL < Maintenance Margin).

Action: All positions within the wallet undergo liquidation until margin requirements are restored.

  • Available Initial Margin:
    Equity + Derivatives PnL - Spot Margin Requirements - Spot Withholdings - Derivatives Initial Margin - Spot Order Margin
  • Available Maintenance Margin:
    Liquidation Equity + Derivatives PnL - (Spot Margin × 0.8) - Derivatives Maintenance Margin

Available Liquidation Margin:
Liquidation Equity + Derivatives PnL - (Spot Margin × 0.4) - Derivatives Liquidation Margin

  • Regularly monitor margin levels.
  • Choose margin modes (Cross/Isolated) aligned with your risk appetite.
  • Size positions appropriately, considering market volatility.
  • Frequently review positions, especially during volatile market conditions.
  • Clearly understand liquidation thresholds to proactively manage risk.

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