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.

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% Lower than 60% Lower than 96%

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Note: You can only transfer part of your funds out from 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. The system will trade the holding assets to the debt assets in order to repay all the principal and interest. Liquidation will be ended if all debts are paid off or all assets are sold out. If it still can't cover the debts, your account will execute the negative balance procedure.

Kindly reminder:

  1. Mark Price will be used to calculate the Debt Ratio.
  2. Under cross margin, all of your positions will be liquidated if you hold more than one type of coin. The coin of the highest value estimated in BTC will be liquidated first to repay the debt until the debt ratio reaches 0.

Negative Balance and Dealt

If the debts can't be fully covered after the liquidation is completed, your account will execute the negative balance procedure. Solutions to the left debts are as follows:

  1. The remaining debts will be covered by the insurance funds. If there are insufficient insurance funds of corresponding assets to pay off the remaining debts, it will repay as much as it can.
  2. During the negative balance procedure, the borrower's account will show a negative balance (the debt ratio is higher than 100%). At the same time, the withdrawal function of the whole account (including main account and Futures account) will be suspended. (If a negative balance procedure triggered in the sub-account, the withdrawal function of the master account will be suspended.) The withdrawal function will be recovered automatically till users pay off the negative balance by transferring corresponding assets from other accounts into the margin account.
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