Liquidation overview

Cross-account equity (excluding isolated margin and isolated unrealized gains/losses) < the sum of the maintenance margins of all trading pairs, i.e., when the maintenance margin ratio = 100%, the maintenance margin = tier maintenance margin rate × position value (in the case of two-way positions, the calculation is based on the position with the larger equity).

The position's value is determined by a reasonable mark price at the time of calculation.

When the sum of the isolated margin and the unrealized PnL is less than the maintenance margin, the maintenance margin ratio is 100%.

If you have automatic margin call enabled, in the event of liquidation/partial liquidation triggered, a certain amount of margin will be added from your futures account to mitigate the risk of liquidation.

Partial liquidation steps

In the event of a risk occurrence, the following actions will be taken:

Bitget employs a gradual de-leveraging method as a risk control measure to minimize user losses and retain their positions.

1. Cancel:In isolated margin mode, only current position orders will be canceled, while in cross-margin mode, all orders, including those in isolated margin mode, will be canceled.
2. Netting:Orders of all trading pairs in hedging mode will be removed (excluding isolated margin).

   If you choose cross-margin mode and hold both long and short positions on the same trading pair, the platform will net the positions to minimize risk.

3. Partial liquidation:Reduce leverage by two levels (isolated margin not included).

   For position-two tier or higher, in case liquidation is triggered, the position will be partially liquidated to minimize the liquidation risk.

4. Liquidation:Any remaining positions (excluding isolated margin mode) will be placed as flash orders in the market.

   When a user is in the first tier and has no open orders, the system will initiate a market order to close the remaining position if the maintenance margin ratio (MMR) reaches 100%.

If the liquidation is completed and the remaining margin equity in the cross-margin account is positive, or if the isolated position is closed at a better price than the bankruptcy price, the remaining margin will be transferred into Bitget Risk provision.

If, after the liquidation, the remaining margin in the cross margin account is negative, or if the position in the isolated margin account is closed at a worse price than the bankruptcy price, the Insurance Fund will be used to cover the loss. The ADL mechanism will be triggered if the Insurance Fund for the futures trading pair is fully depleted or drops sharply by 30% from its peak.

Auto-deleveraging, abbreviated as ADL, refers to a mechanism for the liquidation of counterparty positions to control overall risk when extreme market conditions or force majeure situations lead to insufficient Insurance Fund or Slump. Refer to ADL for details.

Once ADL is triggered, the platform will no longer place a market order to close/reduce a position. Instead, it will directly engage with the top-ranked counterparty and execute a direct trade with them at the bankruptcy price, without charging any transaction fees. Upon completion of the transaction, the counterparty account's positions in the relevant futures will be closed, and the profits from the positions will be transferred to the recipient account balance.

Automatic partial liquidation counterparty ranking rules

ADL's counterparty ranking is determined by factors including account risk or position risk and the ROI of the futures position, according to the following rules:

Sorted from highest to lowest based on margin trading ROI. The winning positions are listed before the losing positions.

Margin trading PnL: if positions of a coin pair result in a negative profit or are fully or partially liquidated, the margin trading ROI is zero.

Cross

• Margin trading ROI = position ROI × leverage
• Position ROI = unrealized PnL ÷ position value calculated at entry price
• Position value at entry price = position size × average position price
• Leverage = total value of all positions ÷ (total asset balance + unrealized PnL under cross-margin mode)

Isolated

• Margin trading ROI = position ROI × leverage
• Position ROI = unrealized PnL ÷ position value calculated at entry price
• Position value at entry price = position size × average position price
• Leverage = position value ÷ (margin + unrealized PnL)

According to the above rules, the higher the margin profit and the position leverage, the more likely the account is to be used as an ADL counterparty, thereby facing the risk of automatic deleveraging.