The Debt Ratio will be refreshed every 5 seconds. When the user's debt ratio reaches 95%, the user's account will trigger a warning and KuCoin will send an SMS and email warning to the user based on the security settings. A forced liquidation will be triggered when the debt ratio reaches 97%.
|Leverage Multiples||Initial Debt Ratio of Full Leverage(except interests)||Debt Ratio of Alert||Debt Ratio of Forced Liquidation||Debt Ratio of Transfer-out||Debt Ratio of Auto-renewing|
Liquidation: A forced liquidation will be triggered when the token price changes resulting in all your assets slightly left or repaying the principal and interest. All of the positions of this pair are closed automatically to prevent further loss and ensure you do not default on your loan.
1. When the debt ratio in the margin account reaches the Debt Ratio of Forced Liquidation, forced liquidation is triggered.
2. When the liquidation is triggered:
2.1 Liquidation notification: based on the security settings of your account, the system will notify you by Email/SMS/Station Alert.
2.2 Operation limitation
A. You’re not able to place any order, no matter which margin trade pair it is.
B. All the trade pairs in your margin trade account will be canceled automatically if they are not full filled.
C. Transferring funds into the margin trade account will be unavailable during the liquidation period.
3. The funds in a margin trade account will be used to repay the principal and interest. Liquidation will be ended if there are enough funds. If not, you will get into a negative balance.
- Mark Price will be used to calculate the Debt Ratio.
- Under cross Margin, not all of your position will be liquidated if you hold more than one type of coin. The highest value of your coins estimated in BTC will be liquidated until the debt ratio is lower than the Debt Ratio of Alert.