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|
|0-10 times||90%||95%||97%||Less than 60%||96%|
Note: You can only transfer part of your funds out from margin account if the Debt Ratio is less 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: 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.
Negative Balance and Dealt
In the event of a Liquidation, the position would be closed at the Last Traded Price on the platform. If the loss on the position is higher than its Initial Margin, the extra loss will be covered by the Insurance Fund. Should it be insufficient to cover that loss, your account will show a negative balance.
For the extra loss：
- The extra loss will be covered by the insurance fund if the specific coin can cover the loss. A specific repaid record will be generated in your repaid history, marked: Insurance Fund Repay.
- All the insurance fund for a specific coin will be used to cover as much as a loss if the insurance fund is insufficient to cover the gap between the final execution price and bankruptcy price.
- In the event of a negative balance, it shows a negative balance in your borrow account and a debit in your margin account. Withdrawal function is unavailable and the funds you repaid to margin account will transfer to insurance fund until all the loss has been covered.