If your margin ratio falls below your Maintenance Margin ratio, which is 10%, your account will trigger liquidation and the liquidation engine will take over the account.
Margin ratio = (Equity / Exposure) * 100%
Maintenance Margin Ratio: If your margin ratio falls below your Maintenance Margin ratio, which is 10%, your account will trigger liquidation and the liquidation engine will take over the account. To significantly save your positions from liquidation, WOO X utilizes a three-step liquidation process:
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- The system will cancel your pending orders carefully to minimize impact. If canceling pending orders causes its margin ratio to increase back above or equal to 10%, the liquidation ends.
- If the margin ratio is still below the maintenance margin ratio, the liquidation engine will aim to close down 50% of the current position of the account with IOC (Immediate Or Cancel) orders. The liquidation engine retreats if partial liquidation causes its margin ratio to rise above 10%.
- If the margin ratio drops below 10% again within one hour, the account will begin to fully close down against the liquidation engine. The liquidation engine will try to close down all positions at the bankruptcy price and the liquidity provider will kick in to take over the remaining orders if all positions can not be closed down. The account’s balance becomes 0.
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