Dear WEEXers,
The following text is about estimated liquidation price
When the futures price reaches a certain value, causing the unrealized profit and loss to reach a certain level, the margin ratio reaches the minimum maintenance margin ratio. At this point, the maintenance margin ratio equals the minimum maintenance margin ratio, and tis price is referred to as the estimated liquidation price.
Margin rate
USDT-margined futures margin rate
= (Position margin + unrealized profit and loss) ÷ position value
= (Position margin + unrealized profit and loss) ÷ (number of position futures x latest mark price)
Maintenance margin rate
To mitigate the impact on market liquidity when large positions are liquidated, WEEX futures use a tiered maintenance margin rate system. In other words, the larger the user’s position, the higher the minimum maintenance margin rate, and the lower the maximum leverage available to the user.
In isolated margin mode, the number of futures positions in each direction, the position tier, and the required minimum maintenance margin rate for each position are calculated separately.
You can view position information on the trading interface of each future contract.
When total value < total maintenance margin, liquidation well be triggered:
- After consolidating positions into long positions: Estimated liquidation price = Mark price - (Total value - Total maintenance margin) ÷ ((Total current long positions - Total current short positions) x (1 - Maintenance margin rate))
- After consolidating positions into short positions: Estimated liquidation Price = Mark price - (Total value - Total maintenance margin) ÷ ((Total current long positions - Total current short positions) x (1 + Maintenance margin rate))
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