Risk Rate of Cross Margin Mode
In isolated margin mode, when the mark price reaches the liquidation price, the position will be liquidated. However, in cross margin mode, the position is liquidated only when the risk rate reaches 100%. The liquidation price can only be used as a reference, not as a basis for liquidation.
What is Cross-Margin Risk Rate?
The risk rate is the only factor for liquidation in cross margin mode. It is the ratio of the margin needed to keep your current positions and open orders to the total margin. Different risk rates will affect your positions and open orders.
Calculation of Risk Rate
(Sum of the maintenance margin for cross-margin positions + Maintenance margin for anticipated open order execution + Expected closing fees) / (Total cross-margin position margin - Expected opening fees)
Example:
| User Positions and Open Orders | Risk Rate |
|
Assuming your total margin is 5,000 USDT in the cross margin mode, you currently hold a long BTC/USDT contract and an open order for a short ETH/USDT contract.
Current BTC/USDT contract mark price: 62,000 USDT BTC/USDT contract multiplier: 0.001 BTC/USDT contract position: 100 contracts Maintenance margin rate for BTC/USDT contract: 0.5%
Current ETH/USDT contract mark price: 3,000 USDT ETH/USDT contract multiplier: 0.01 Open orders for ETH/USDT contracts: 1,000 Maintenance margin rate for ETH/USDT contract: 0.8% Taker fee rate: 0.06% |
At this point, your account’s risk ratio = (62,000 * 0.001 * 100 * 0.5% + 3,000 * 0.01 * 1,000 * 0.8% + 62,000 * 0.001 * 100 * 0.06% + 3,000 * 0.01 * 1,000 * 0.06%) / (5,000 – 3,000 * 0.01 * 1,000 * 0.06%) = 5.88% |
Risk Rate Limits
When the cross-margin account risk rate ≥ 95%, the system will cancel your orders.
When the cross-margin account risk rate ≥ 100%, your positions will be liquidated. If your position amount > 600,000 USDT, your positions will be partially liquidated.
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