Forced Liquidation
Written by David
Updated over a week ago

In order to maintain a position, an investor must hold a certain percentage of the position value in margin, also known as the maintenance margin. If you are unable to fulfill the margin requirement, the forced liquidation will be triggered and you will lose your maintenance margin.

The minimum maintenance margin requirements can be found on the Leverage and Risk Limits page.

TruBit Pro uses markup prices to avoid forced liquidation due to a lack of liquidity or market manipulation.

  • In isolated margin mode: If the forced liquidation is triggered, the position will be closed.

  • In cross margin mode: If the forced liquidation is triggered, all pending orders will be canceled and all positions will be closed.

System's Profits and Losses

If TruBit Pro can activate the forced liquidation at a better price than a liquidation price, the additional money will be put into the insurance fund.

If TruBit Pro is unable to execute the forced liquidation at the liquidation price, then TruBit Pro will expend the insurance fund and attempt to close the position in the market. If the insurance fund is exhausted and TruBit Pro is still unable to execute the forced liquidation for all open orders, the Auto-Deleveraging system will be triggered.

If you have questions regarding this information, please contact the TruBit Team via our chat channel or email us Here and we'll be in touch!

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