Notes
Please note that under abnormal price fluctuations and volatile market conditions, the system will take additional measures to maintain market stability, including but not limited to:
1. Adjustment of maximum leverage.
2. Adjustment of position limits for different tiers.
3. Adjustment of maintenance margin ratio of different tiers.
What is Liquidation?
Liquidation happens when your losses grow too large and the platform automatically closes your position.
With leverage, you're essentially borrowing funds to open a bigger position. If the market moves against you and losses pile up, the system steps in to protect the borrowed funds by closing your position before your account balance goes negative.
In short, liquidation means the system closes your position automatically due to insufficient margin.
Example:
Say you open a long position of 10,000 contracts of BTCUSDT Perpetual Futures at 25x leverage, with an entry price of 8,000 USDT. (Assume this falls in the first risk tier with a 0.5% Maintenance Margin Rate.)
· Maintenance Margin = 8,000 × 10,000 × 0.0001 × 0.5% = 40 USDT
· Position Margin = (8,000 × 10,000 × 0.0001) / 25 = 320 USDT
· Liquidation Price = (40 − 320 + 8,000 × 10,000 × 0.0001) / (10,000 × 0.0001) = 7,720 USDT
So if you bought BTC at 8,000 USDT with 25x leverage, your position gets liquidated when BTC drops to 7,720 USDT.
Visit MEXC Learn to learn more about liquidation.
FAQ
The Maintenance Margin Rate (MMR) is the minimum margin percentage required to keep a position open. If your margin balance falls below this level, your position risks liquidation. On MEXC, each trading pair has its own MMR based on risk tier and position size.
