Debt Ratio & Liquidation

Debt Ratio

The Debt Ratio will be refreshed every 5 seconds. When the user's debt ratio reaches 95%, the user's account will trigger an alert 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%. You may obtain the current debt ratio data on the margin account page and margin trading page no matter whether you are visiting our website or using our App.

Margin Modes	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
Cross Margin	1-5 times	80%	95%	97%	lower than 60%	lower than 96%
Isolated Margin	1-10 times	90%	95%	97%	lower than 60%	lower than 96%

Note: You can only transfer part of your funds out from the margin account if the Debt Ratio is lower than 60%, if you'd like to transfer all of your funds out, kindly check the Liabilities in your margin assets page and repay all the loan first.

Liquidation

Liquidation: A forced liquidation will be triggered when the mark price of your holding assets and debt assets changes resulting in the debt ratio reaching 97%. All the assets you hold at the margin account will be sold as the debt assets to repay all the debts.

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 unable to place an 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. After the forced liquidation occurs, the system will take over the positions to close and repay the debts. If there are residual balances, one small part of fees (about 1% of the total positions value) will be charged to protect against the risks of negative balances; the others will be returned to users’ accounts in USDT or liquidated tokens. 

Kindly reminder:

1. Mark Price will be used to calculate the Debt Ratio.
2. Margin trading is an activity with high market risk. While it may magnify gains, it may also magnify losses for you. Realized profit in the past are not indicative of returns in the future. Violent price fluctuations may result in the liquidation of all your assets. The information provided here should not be considered as financial or investment advice. All trading strategies are at your own discretion and risks. KuCoin does not assume any responsibility for any losses caused using margin trading.