What is Bankruptcy Price?

The Bankruptcy Price is the price level at which a user's loss equals their collateral value or initial margin. When the market price reaches this level, the user’s account no longer has sufficient margin balance to maintain the position, leading to liquidation. 

Liquidation Mechanism on ONUS Pro

On ONUS Pro, the system initiates liquidation when the Mark Price reaches or exceeds the Liquidation Price.

Several factors influence the Liquidation Price, including:

• Leverage used
• Maintenance margin ratio
• Position entry price
• Additional margin
• Position size
• Open loss

Once a liquidation is triggered, it functions similarly to a Stop Limit order. Specifically:

• The Stop Price is the Liquidation Price – this is the trigger level at which liquidation begins when the Mark Price reaches it.
• The Limit Price is the Bankruptcy Price – this is the price at which your collateral is fully liquidated.

When the position price surpasses the Liquidation Price, the liquidation process begins. The Bankruptcy Price is the final limit, where your entire margin balance is forcibly liquidated.

Learn more about how the Liquidation Price is calculated here.

Important Note

Using order types like Limit, Post Only, Stop Limit, or Stop Market with triggers based on the Last Price cannot guarantee avoidance of liquidation. To protect your account, it's essential to actively monitor your positions and market movements.

Trade responsibly and make informed decisions to safeguard your capital.