When your maintenance margin ratio falls to 100% or below, the actual liquidation price is calculated, triggering either partial liquidation or full position closure. Note: Estimated liquidation prices fluctuate continuously—displayed values are for reference only.
To enhance contract market stability and reduce unnecessary liquidations during extreme volatility:
- Liquidation prices use mark prices (toggle candlestick charts to view historical trends).
- Liquidation only affects trading accounts, not funding wallets.
1. What Is Maintenance Margin Ratio?
This metric reflects position safety—higher ratios indicate greater security.
Calculation Methods:
A) Spot & Contract Mode (Cross-Margin)
Formula:
(Currency balance + PnL - sell orders - options/isolated margin requirements - fees) / (Maintenance margin + liquidation fees)
Components:
- Maintenance Margin: Sum of leveraged loans, futures, perpetuals, and options margins (accounts for pending orders to prevent abrupt risk spikes).
- Liquidation Fees: Taker fees applied to loan values, derivatives positions, and options.
B) Cross-Currency Margin Mode
Formula:
Effective collateral / (Maintenance margin + partial liquidation fees)
- Both margins and fees factor in open orders.
C) Isolated Margin Mode
Formulas:
- Coin-Margined Contracts:
(Margin balance + PnL) / (Face value × |Contracts| ÷ Mark price × (Tiered margin rate + fee rate)) - USDT-Margined Contracts:
(Margin balance + PnL) / (Face value × |Contracts| × Mark price × (Tiered margin rate + fee rate))
2. Partial Liquidation vs. Forced Liquidation
Cross/Isolated Margin Scenarios:
Positions enter partial liquidation when:
- Maintenance ratio ≤100% but > Tier 1 threshold (for Tiers 3+).
- System reduces position by two tiers iteratively until ratio stabilizes.
Full forced liquidation occurs if:
- Ratio breaches Tier 1 requirements.
- Positions are auctioned at bankruptcy price (zero maintenance margin).
👉 Learn how to monitor liquidation risks
Purpose: Mitigate volatility-induced cascading liquidations and over-levies.
3. Does OKX Use Loss Socialization?
No. OKX replaced分摊 (loss sharing) with Auto-Deleveraging (ADL)—a counterparty liquidation system triggered when:
- Risk reserves drop 30% within 8 hours.
- ADL prioritizes closing opposing positions at mark prices, converting profits to balances.
Users receive SMS/email notifications post-ADL. Check "Order History" for details tagged Auto-Deleveraging.
4. Understanding Risk Reserves
OKX’s safeguard against liquidation shortfalls, sourced from:
- Platform-provided funds.
- Residuals from liquidated orders.
Key Notes:
- Reserves are segregated by product (leverage, futures, perpetuals, options) and currency.
- Daily 16:00 HKT updates reflect gains/losses from liquidations.
FAQ Section
Q: Why does my liquidation price keep changing?
A: Prices dynamically adjust with mark price volatility—always monitor real-time data.
Q: Can pending orders prevent liquidation?
A: Yes. Orders are factored into margin calculations to buffer abrupt risks.
Q: How does ADL select counterparties?
A: Positions with highest profits are prioritized for partial closure.
Q: Where can I track risk reserve levels?
A: Reserve balances are disclosed in OKX’s transparency reports.