In the event of a Liquidation, the position would be closed at the Last Traded Price on the platform. If the loss on the position is higher than its Initial Margin, the extra loss will be covered by the Insurance Fund. Should it be insufficient to cover that loss, your account will show a negative balance.
For the extra loss：
- The extra loss will be covered by the insurance fund if the specific coin can cover the loss. A specific repaid record will be generated in your repaid history, marked: Insurance Fund Repay.
- All the insurance fund for a specific coin will be used to cover as much as a loss if the insurance fund is insufficient to cover the gap between the final execution price and bankruptcy price.
- In the event of a negative balance, it shows a negative balance in your borrow account and a debit in your margin account. Withdrawal function is unavailable and the funds you repaid to margin account will transfer to insurance fund until all the loss has been covered.