When an account’s Unified Maintenance Margin ratio (uniMMR) goes below 105%, it is liquidated. In such instances, the account will be taken over by the liquidation system, and the user will be unable to make any transactions while the account is being liquidated.
Once liquidation is triggered, such a process will not stop until it is completed. Transferring assets into the Margin, USDⓈ-M Futures, or COIN-M Futures wallets after liquidation starts will not stop nor reverse the process.
Learn how to calculate uniMMR!
Margin Account Liquidation
When the user’s margin position is liquidated, the margin liquidation engine will take over the assets on the account and sell them to cover the liabilities.
Futures Account Liquidation
Due to the lack of a margin check at the order level, placing a big order could lead the uniMMR to fall below 105 percent when it is completed, increasing the danger of rapid liquidation. Users must perform their own margin check prior to order placement and set an adequate risk control framework in order to mitigate liquidation risks.
To ensure service quality and market stability when the system is facing continuous liquidation, it is possible that the Insurance Fund will directly take over the liquidation positions. Please note that the Insurance Fund will take over the liquidation positions at the bankruptcy prices, and the bankruptcy prices may be out of the contract’s market price range.
For positions exceeding the maximum amount of Insurance Fund coverage, Auto-Deleveraging (ADL) will be triggered.
It is worth noting that there is no liquidation fee on both Margin and Futures side.
Portfolio Margin Call Notifications
Ducrypto will notify users by email and in email notifications when their uniMMR falls below the following levels:
A first margin call will be sent to user when the uniMMR ≤ 200%
A second margin call will be sent to user when the uniMMR ≤ 150%
A user’s account will be automatically changed to reduce-only mode (opening new positions and margin loans suspended) when uniMMR ≤ 120%
A user will receive a liquidation call when uniMMR ≤ 105%
API Error Codes During Liquidation Account Status
When an account is in reduce-only or liquidation mode, the following order entry error codes will be in effect:
Account Status/UniMMR Range Order Entry Response Error Code
uniMMR < 105% UNABLE_TRADE_LOW_LIQUIDATION(HttpStatus.BAD_REQUEST, -3048, “Unable to trade. Your margin account is currently in liquidation. Please try again once the liquidation is processed.”)
105% <= uniMMR < 120%
Futures Fapi/dapi error code: unchanged
When uniMMR falls below 120% : reduce- only error code