Forced liquidation is when the margin reaches the maintenance margin level, your position must be closed, and you will lose all the maintenance margin. Liquidation is triggered when the Mark Price hits the Liquidation Price.
What you need to know about liquidation:
(1) Forced liquidation using mark price
XT.COM uses the method of marking price to avoid forced liquidation due to lack of liquidity or market manipulation.
(2) The more the position requires for leverage tiering, the higher the required margin level.
When the position is large, once the liquidation is triggered, there is a risk that it cannot be safely liquidated, which will affect the market. The liquidation engine of XT.COM can use more margin to effectively close the position in large quantities.
If the liquidation is triggered, XT.COM will cancel all unfilled orders of the contract to release the margin and maintain the position. Orders of other contracts will not be affected.
XT.COM uses a partial liquidation method to close positions step by step, this method will automatically try to reduce the maintenance margin requirement and avoid all positions being liquidated.
(3) In the cross-position mode, all available funds will be used as position margin
In the cross-position mode, all of the user's available assets will be used as position margin. However, it should be noted that in this mode, the available balance of the user's loss will not be used as the margin for other cross-position positions.