Liquidation Price in Cross Margin Mode

 

What is Cross-Margin Liquidation Price

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 cross-margin liquidation price can only be used as a reference, not as a basis for liquidation.

Calculation

Forward Contract Liquidation Price = (Mark Value – abs(Mark Value) * AMR) / (1 - side * MMR - side * taker fee rate) / Position Amount

Reverse Contract Liquidation Price = Position Amount / (Mark Value – abs(Mark Value) * AMR) / (1 - side * MMR - side * taker fee rate)

AMR = Total Margin in Cross Margin Mode / ∑abs(Mark Value)

You can find the Initial Margin Rate (IMR) and Maintenance Margin Rate (MMR) in the position section or through the API.
Forward Contract: side = 1 for long positions; side = -1 for short positions.
Reverse Contract: side = -1 for long positions; side = 1 for short positions.

Example:

Position Liquidation Price

Assume you hold a long BTC/USDT contract and a short ETH/USDT contract with a total margin of 1000 USDT in the cross margin mode.

 

Current BTC/USDT contract mark price: 62,000 USDT

BTC/USDT contract multiplier: 0.001

BTC/USDT contract position: 10 contracts

BTC/USDT contract MMR: 0.5%

Taker fee rate: 0.06%

 

Current ETH/USDT contract mark price: 3,800 USDT

ETH/USDT contract multiplier: 0.01

ETH/USDT contract position: -100 contracts

ETH/USDT contract MMR: 1%

AMR = 1000 / (62,000 * 0.001 * 10 + 3800 * 0.01 * 100) = 22.62%

BTC/USDT contract liquidation price = (62,000 * 0.001 * 10 – 62,000 * 0.001 * 10 * 22.62%) / (1 - 0.5% - 0.06%) / (0.001 * 10) = 47,956

ETH/USDT contract liquidation price = abs(3,800 * 0.01 * -100 – abs(3,800 * 0.01 * -100) * 22.62%) / (1 + 1% + 0.06%) / (0.01 * -100) = 4,610.7

 

 

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