The B9USDT contract uses a marked price to avoid unnecessary forced liquidation due to abnormal market fluctuations. At the same time, to prevent large forced liquidations from having a drastic impact on liquidity, a tiered maintenance margin system is implemented.
In the stepless margin mode, forced liquidation is triggered when the position margin falls to the maintenance margin.
In full margin mode, forced liquidation is triggered when the margin requirement drops to the maintenance margin and the account's available balance is 0.
Estimated liquidation price = Marked price - [Potential loss / (Number of positions * Contract direction)]
When a user triggers forced liquidation, the system's liquidation engine takes over the position at bankruptcy price, and the resulting liquidation surplus is injected into the risk reserve fund.
The forced demolition process is as follows:
Takeover of positions at the minimum margin level:
1. Cancel all unexecuted orders under this contract;
2. If the maintenance margin requirement is still not met at this point, the position will be forcibly taken over by the liquidation engine at the bankruptcy price.
For positions with a margin level of 2 or higher:
1. Cancel the unfilled orders for the contract, but retain the existing position to lower the user's margin level.
2. Submit a full execution or immediate cancellation of the order. The value of this order is equal to the difference between the current position value and the margin level that meets the current margin requirements, to avoid further liquidation.
3. If the position is still in a liquidation state, then the liquidation engine will take over the position at a bankruptcy price.
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B9 Crypto Operations Team
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