Trading Rules: Liquidation Process (Unified Wallet)

• 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 .

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.