โAPX Futures Liquidation Protocol
Differences Between Mark Price and Last Price
APX Perpetual Futures use the Last Price and the Mark Price to avoid price spikes and unnecessary liquidations during periods of high volatility.
The โlast priceโ refers to the latest transaction price of a contract, or the price of the last trade in the trading history. The last price is used to calculate realized profit and loss (PnL).
The โmark priceโ is calculated based on a combination of funding data and basket price data from multiple spot exchanges. Liquidation prices and unrealized PnL are calculated based on the mark price.
Risk and leverage are adjusted based on absolute exposure; the larger the position, the higher the required margin and the lower the leverage multiplier that you will be able to use.
Forced liquidation is triggered under the following conditions:
Margin = Initial margin + Realized PnL + Unrealized PnL < Maintenance margin
*The liquidation price is directly affected by the maintenance margin. In order to avoid liquidation (i.e., risk ratio hits 100%), you should add a reasonable amount of margin to your account or reduce the size of your position. We recommend keeping your margin ratio below 80%.
Forced Liquidation
APX uses the mark price to avoid unnecessary forced liquidations and to combat market manipulation.
Forced Liquidation Price
Liquidation occurs when the mark price hits the liquidation price. You should pay close attention to changes in the mark price and liquidation price to avoid being liquidated.
When trading in hedge mode using cross margin, both long and short positions of the same contract share the same liquidation price. If using isolated margin mode, long and short positions of the same contract will have different liquidation prices depending on the amount of margin allocated to each position.
You can use the built-in Future Calculator to calculate the liquidation price.
Forced Liquidation Process
During the forced liquidation process, all open orders on your account will be canceled immediately. Based on the risk level of your position, different liquidation protocols will be used to avoid full liquidation of your position whenever possible. Upon forced liquidation, you will also incur a โforced liquidation fee.โ Therefore, we suggest closing your positions manually before the amount of available funds in your account falls to the maintenance margin level in order to avoid paying unnecessary fees.
It is important to note that, generally speaking, users who hold smaller positions have a greater chance of being fully liquidated versus users who hold larger positions. This is because the maintenance margin is based on position size rather than how much leverage you choose to use.
Liquidation Orders
Please note that all liquidation orders are โimmediate-or-cancelโ orders, which means that as much of the order as possible is filled and the rest is canceled. This is different from a โfill-or-killโ order which is only executed if the order can be filled in its entirety, otherwise it is canceled. Any remaining positions will be allocated to the insurance fund or counterparty-liquidated.
The system will first cancel all of your open orders, and then attempt to reduce your margin usage with one large immediate-or-cancel order without fully liquidating your position. If your account is margin compliant after accounting for realized losses and deducting any liquidation fees, the liquidation will stop. If you still donโt have enough margin in your account, your position will be closed at the market bankruptcy price, and the insurance fund will take over the position. At this point your account will be declared bankrupt. A portion of the remaining assets (if any) will go to the insurance fund. If your account goes bankrupt (negative wallet balance), the insurance fund will pay the fees on your account.
Automatic Negative Balance Settlement (Asset Balance < 0)
If you end up with a negative account balance, APX will only use funds from the insurance fund to make up for losses on the account. Negative balances are automatically settled every 10 minutes.
Please note that negative balances will only be settled automatically for users who meet all of the following criteria:
USDโ-M Perpetual Futures accounts with a negative balance must not have any open positions (cross or isolated margin).
The negative balance cannot be higher than 5,000 USDT.
Funds must not have been transferred to the account after liquidation to make up for the negative balance.
If you do not meet all of the criteria above, please contact our customer support team for assistance.
Liquidation Settlement Fee
When you get liquidated, a certain percentage of the liquidation fee is allocated to the insurance fund. This appears in your transaction history as a โInsurance Clearance Feeโ. You can refer to the Trading Rules page to learn more about liquidation fees.
Note:
Bankruptcy prices may be outside of the market price range of the contract.
We send margin call and liquidation reminders via email and on-site notifications. This function serves as a risk warning and we cannot guarantee timely delivery or receipt. While using this service, it may not be possible to receive text or email reminders, or the reminders may be delayed due to certain circumstances, such as network congestion or a poor network environment. APX reserves the right to send notifications without the obligation to do so.
To avoid missing emails, please make sure you add APX to your email whitelist to prevent important emails from being misclassified.
Disclaimer: Due to syncing or lag, the numerical figures displayed in such notifications are subject to update without notice.
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