Why was I liquidated?

When the Mark Price of your position has reached the Liquidation Price,  your margin has reached the Maintenance Margin level, and your position will be Liquidated.

How does the Liquidation work?

  • Step 1 (On-Market): When Liquidation occurs, BTSE will attempt to close your position at the Bankruptcy Price.
  • Step 2 (On-Market): If the position is unable to close at Bankruptcy Price, BTSE will attempt to to close it at 1% further lower/higher price funded by the BTSE insurance fund.
  • Step 3 (Off-Market): If the position is still unable to close, Auto-Deleveraging will occur.

What is Auto-Deleveraging?

When the "On-Market" steps fail to close the position, Auto-Deleveraging will occur. BTSE will automatically match the opposing holders positions according to their profit and leverage priority and close your position.

Can I lose more than my margin balance?

No, your margin balance on BTSE cannot fall below 0 (The Liquidation and Auto-Deleveraging mechanism prevents this from happening).
* Margin will only been drawn from your margin wallets (Cross Wallet or Isolated Wallets), not from your spot wallets.

Do I need to pay socialize losses?

No, the Liquidation and Auto-Deleveraging mechanism will avoid your margin going down below 0, so there are no losses that needs you to socialize.

What is a Margin call?

Margin Call is an email notification that will be sent when the Mark Price has reached your Liquidation Price.  You will be notified when your position has been liquidated.