On the right side of the screen, you will see your account’s Margin Score, which indicates your risk level based on the Virtual Assets borrowed and interest owing, and the Virtual Assets that you hold as Collateral in your Margin Wallet.
Your Margin Score changes according to the market movements, so if the prices move against your prediction significantly enough, a Margin Call may occur, and your Virtual Assets may be liquidated.
How is my account’s Margin Score calculated?
The formula to calculate your Margin Score is:
Margin Score = Total Margin Wallet Balance ÷ (Total Borrowed + Total Outstanding Interest)
Margin Score ﹥1.30
If your Margin Score is greater than 1.30, your Margin Wallet is in a healthy standing. You can trade, borrow, and transfer Virtual Assets to your Margin Wallet.
1.10 < Margin Score ≤ 1.30
If your Margin Score is greater than 1.10, but less than or equal to 1.30, your Margin Wallet is likely to be liquidated if it drops any further. A Margin Call will be triggered via email to your Account’s registered email address to add more Collateral to your Margin Wallet or to repay outstanding loans. At this point you can still trade, borrow, and transfer Virtual Assets to your Margin Wallet.
Margin Score ≤ 1.10
Forced Liquidation will occur. If your Margin Score is less than or equal to 1.10, our system will liquidate all Virtual Assets available in the Margin Wallet to pay back the outstanding loan principal and interest. If the value of your Margin Wallet is insufficient, we may require you to pay back the amount owing from your Spot Wallet. We may terminate open Orders, open positions, the Margin Trading Facility or the Agreement.
Please note that all Virtual Assets will be liquidated. The loan will be repaid through the proceeds that we have obtained as a result of the liquidation. After the liquidation is complete, subject to the liquidation fee, all remaining proceeds will become available in your Margin Wallet.
Liquidation Fee will be charged on the orders needed to liquidate a position. Fee is a flat 0.16% taker rate. Fees will be charged in the trade’s native Virtual Asset.