To ensure market stability and user trading safety, the ASTX platform provides the following explanation regarding maintenance margin and forced liquidation mechanisms. Users should fully understand this information and manage position risks responsibly.
1. What is Maintenance Margin?
Maintenance margin is the minimum margin level that a user must maintain while holding a position.
If the account margin falls below this level, the system may trigger forced liquidation to prevent the account from going into debt.
Calculation Method (Example: USDT Perpetual Contract)
1. Isolated Margin Mode (affects only the position)
• Isolated Margin: Only impacts the margin of the specific position.
• Long Position:
Liquidation Price = (Position Value - (Position Margin - Maintenance Margin - Fees)) ÷ Position Quantity
• Short Position:
Liquidation Price = (Position Value + (Position Margin - Maintenance Margin - Fees)) ÷ Position Quantity
2. Cross Margin Mode (affects the entire contract account)
• Long Position:
Liquidation Price = (Position Value - (Account Balance - Maintenance Margin - Fees)) ÷ Position Quantity
• Short Position:
Liquidation Price = (Position Value + (Account Balance - Maintenance Margin - Fees)) ÷ Position Quantity
2. What is Forced Liquidation?
When the available margin in the account falls below the maintenance margin requirement, the system will automatically trigger forced liquidation to prevent the account from going negative.
Trigger Conditions
• Long Position: Triggered when the mark price falls below the liquidation price
• Short Position: Triggered when the mark price rises above the liquidation price
Influencing Factors
1. Maintenance Margin Rate: Varies depending on position size and leverage
2. Market Volatility: Sharp market fluctuations may cause deviations in the liquidation price
3. How to Reduce Forced Liquidation Risk
1. Monitor Market Volatility
Keep track of price movements, especially during high volatility periods.
2. Allocate Margin Wisely
Avoid having too low account margin; maintain sufficient funds.
3. Use Risk Management Tools
• Set Stop-Loss orders
• Use Isolated Margin mode
• Adjust leverage levels
4. Special Notes
• Maintenance margin is not refundable after forced liquidation and is used to prevent account deficits.
• In extreme market conditions, the liquidation price may deviate, so users should manage risks reasonably.
• If you have any questions, please contact ASTX customer support for assistance..