Liquidation
On Bitnxs, a position is liquidated when its margin falls below the maintenance margin requirement, based on the mark price. Liquidation closes the position (partly or fully) automatically, a liquidation fee of 0.10% (base rate) applies, and the fee goes to the insurance fund that absorbs losses in extreme moves.
When does liquidation happen?
Section titled “When does liquidation happen?”When Margin balance (initial margin + unrealized PnL) ≤ Maintenance margin, where unrealized PnL uses the mark price. Positions may be closed partly or fully without prior notice, and in fast markets the fill can be materially worse than the mark price.
How do I estimate my liquidation price?
Section titled “How do I estimate my liquidation price?”For a single isolated position, ignoring fees and funding, with leverage L and maintenance margin rate m:
- Long:
Liq. price ≈ Entry × (1 − 1/L + m) - Short:
Liq. price ≈ Entry × (1 + 1/L − m)
Example (illustrative m = 0.5%): Long BTC at 80,000 with 20x. 1/L = 5%. Liq. price ≈ 80,000 × (1 − 0.05 + 0.005) = 76,400 USDC.
The 0.5% maintenance rate above is for illustration only. The app shows an estimated liquidation price before you place an order. Use that value.
What is the liquidation fee?
Section titled “What is the liquidation fee?”0.10% of the liquidated notional at the base tier (lower for some VIP / market-maker tiers, see Fees). It is charged only on forced closes, not on normal trades, cancellations or positions you close yourself.
How do I avoid liquidation?
Section titled “How do I avoid liquidation?”Use lower leverage, add margin, set a stop-loss, and watch the mark price, not just the last price.
Is there an insurance fund? Yes, liquidation fees fund it. The insurance fund covers shortfalls when a liquidated position settles below its bankruptcy price. If it is insufficient, Bitnxs may apply auto-deleveraging (ADL): opposing profitable positions are closed at the bankruptcy price, starting with the highest-leverage, highest-profit accounts (Terms of Service §8).