💦Liquidation

Calculation of Margin Rate on the MYX Platform.

• Margin Rate = (Position Size * Average Holding Price * Maintenance Margin Rate) / Position Net Asset

  • Position Net Asset = (Margin + Unrealized PnL + Funding Fee - Taker Fee)

"Unrealized PnL" refers to unrealized profit and loss, reflecting the current profit and loss status of the position.

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Maintenance Margin

1. Maintenance Margin is the minimum amount of collateral required to keep a position open and avoid being liquidated.

   • The formula for Maintenance Margin = Position Size (Coin) * Average Holding Price * Maintenance Margin Rate

   • Maintenance Margin Rate: 1%

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Liquidation

1. Forced Liquidation occurs when the margin of a position falls to or below the Maintenance Margin level. This means that if the margin rate of a position increases to 100% or more, the system will automatically initiate the liquidation process.

2. The liquidation is completed in a single block without price deviation.

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Post-Liquidation Handling

1. After liquidation, the remaining margin is allocated to a risk reserve fund.

2. The risk reserve fund is used to cover any platform account losses due to extreme market conditions that result in positions being liquidated beyond their initial margin (a situation known as "blowing up" or "penetrating" the margin).

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Liquidation Fees

1. MYX does not charge additional fees for liquidation. Standard Taker fees are applied during liquidation.

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Additional Information

1. Blowing up or Penetrating the Margin: In leveraged trading, this refers to a situation where market price fluctuations are so significant that the losses on a position exceed the trader's initial margin.

2. Role of the Risk Reserve Fund: In extreme market conditions, the risk reserve fund serves as a crucial safety measure to ensure the stable operation of the platform and to mitigate systemic risks.