◆ Forced Liquidation
“Forced Liquidation” refers to a situation when a position is closed because the net value is lower than the required level.
1. Under the condition where “Maintenance Margin≤0.5%*Notional Value of a Position Opened”, “Forced Liquidation” could happen to prevent further losses for the trader.
2. DB Contract is excluded from the aforementioned “Notional Value of a Position Opened”.
3. Maintenance Margin=Net Value-Margin used in DB.
◆ No Negative Balance
1. During high crypto market volatility, a negative balance should have occurred when forced liquidation takes place. However, BEX500 does NOT require the trader to pay back negative balances at this stage to safeguard better trading.
2. Nevertheless, in an extremely volatile market, where forced liquidations cannot be executed in the market, ADL (Auto Deleveraging) can be employed. please refer to ADL for more detail