Tapbit perpetual contracts provide high multipliers of leverage. To keep a position from being liquidated, traders must hold a margin at a certain proportion of the position value, which is also known as the maintenance margin. If your position does not meet the maintenance margin requirement, it will be liquidated, and you will potentially lose the margin. You can view the liquidation price of each position under “Positions” and adjust the liquidation price by transferring the correct amount of USDT to the actual contract account.
The maintenance margin rate for each contract symbol varies according to the number of positions held. For details, please refer to the following website: https://www.tapbit.com/contract/content/positionTiers
For the same currency symbol, only one direction position is held, the position quantity is calculated based on the sum of all quantities in the same direction of the currency pair. For the same currency symbol, two direction positions are held, the position quantity is calculated based on the quantity in the direction of the large position. If the long and short direction positions are the same, the position quantity is calculated as 0, and the user will not be liquidated.
Minimizing Liquidations As Much As Possible
Tapbit uses the mark price in real time to avoid liquidations arising from the lack of liquidity, volatility, and or potential market manipulation.
If the liquidation is triggered, Tapbit will cancel all unexecuted orders and then release the margin and keep positions accordingly.
Liquidation Process
Cross Mode:
When the margin of the contract position reaches the Maintenance Margin Rate
(MMR), all other positions that fall under the contract will be automatically liquidated.
The liquidation process is as follows:
Tapbit cancels all unexecuted orders to this contract. Furthermore, if the maintenance margin requirement is not met at this very time, the position is taken over by the liquidation engine at the bankruptcy price.
Isolated Mode:
When the margin of the contract position reaches the Maintenance Margin Rate
(MMR), the position will be automatically liquidated. Other positions will not be liquidated unless the margin reaches MMR for the positions.
System Profit and Loss
If Tapbit can liquidate at a price better than the bankruptcy price, the additional funds will be added to the insurance fund. If Tapbit cannot liquidate at the bankruptcy price, Tapbit will apply for the insurance fund and attempt to close it. If this still does not close the liquidated order, this will then lead to an Auto-Deleveraging event.
Tapbit Team
