In a unified account, the margin level determines when a position is liquidated. When the margin level of an open position falls below 100%, the position will be partially or fully closed.
A common misconception is that traders might assume liquidation will occur when the margin level falls to 0%. This is not the case. When the margin level falls below 100%, the position will be liquidated in part or in full, and we'll collect a liquidation clearance fee that will be added to the OKX insurance fund.
Depending on the position tier, partial liquidation may occur instead of full liquidation. If the margin level requirement is still not met after partial liquidation, the position(s) will continue to be reduced until the margin level requirement is met or all positions are closed. This is one of OKX's risk control protocols intended to reduce the impact on the market when a large position is liquidated.
Users can estimate the price at which their positions will be liquidated using the calculator found towards the bottom of the derivatives product trading page. If a user has multiple open positions, the estimated liquidation price might differ from the actual liquidation price in a unified account.
Understanding how margin level is calculated for your account mode
An informed trader is a prepared trader. The guides linked below will help you to understand how the margin level is calculated based on your chosen account mode.
For single-currency margin mode or cross margin trading, click here.
For multi-currency margin mode or cross margin trading, click here.
For single or multi-currency margin mode, or isolated margin trading, click here.
