Forced Liquidation Mechanism and Risk Control
Risk Rate Calculation
Risk Rate = (Total Assets – Unrealized P&L) / Required Maintenance Margin The risk rate reflects the risk status of the position and is the core indicator for judging the possibility of forced liquidation. The higher the risk rate, the safer the account; when the risk rate approaches 100% or falls below the system’s preset warning thresholds (e.g., 80%, 60%), it will trigger alerts or forced liquidation processes. Users can view the overall account risk rate and individual position risk rates in real-time on the contract page.
ChainBitX Risk Engine Monitors Account Status in Real-Time Every Second The platform deploys a high-frequency risk engine to continuously assess risks for all users’ positions and proactively imposes position limits or sends notifications when risk rates change rapidly, ensuring safety for both users and platform funds.
Forced Liquidation Trigger Logic
When account equity falls below the maintenance margin, the system will automatically execute forced liquidation. Forced liquidation is a protection mechanism set by ChainBitX to prevent negative balances. Once the account cannot maintain the current position, the system will automatically close part or all of the positions at market price and charge a small forced liquidation fee (to supplement the risk reserve fund). The forced liquidation process involves two stages: warning alert → automatic liquidation, ensuring users have a chance to rescue their positions.
To Avoid Forced Liquidation, It Is Recommended to Timely Add Margin or Actively Reduce Positions When the risk rate is too low, users can choose to add margin, reduce leverage, or manually close some losing positions to restore account safety. ChainBitX provides a “one-click margin add” feature, allowing users to quickly transfer funds from spot accounts or other asset types, enabling a fast response to risk.