Introduction to Liquidation Protocol

When your account’s Total Account Value falls below its Maintenance Margin (USD), your position(s) may begin liquidation to reduce the account’s overall risk. Once liquidation starts, all open orders are canceled, and the CoinUnited.io liquidation engine takes over management of the account.

Important Notes

1. Possibility of Clawbacks: While CoinUnited.io takes measures to reduce the possibility of clawbacks, they can still occur.

2. Estimated Liquidation Price: The displayed liquidation price is only an estimate. Actual liquidation depends on multiple factors, including contract performance and collateral currency.

3. US Clients: US-based users are not permitted to use CoinUnited.io.

4. Investment Disclaimer: None of the information here constitutes investment advice.

How the Liquidation Engine Works

Trigger for Liquidation

1. Condition: An account enters liquidation when its Total Account Value falls below the Maintenance Margin (USD).

2. Initial Action: All open orders are immediately canceled, and the liquidation engine assumes control.

Liquidation Process

1. Frequency: The liquidation engine places liquidation orders approximately every 2 seconds.

2. Order Size: Each order targets 70% of the remaining position size.

3. Order Notional Bound:

a. Order size is bounded below by min($500,000, position size).

b. Order size is bounded above by the maximum liquidation size remaining.

c. The final order size is adjusted by a factor of uniform(0.85, 1.15) to minimize predictability and market impact.

d. Order size cannot exceed the full position size.

4. Position Reduction: After each order, the maximum liquidation size remaining is decreased by the actual order size.

5. Unstake Flexible: If there is insufficient balance, flexible staking is unstaked to cover margin needs.

6. Duration: Depending on position size, liquidation can be incremental and may complete in about one minute for smaller positions.

7. Liquidation Stops: If partial liquidation reduces your account leverage such that the margin fraction (Total Account Value / Maintenance Margin) is restored above maintenance requirements, liquidation ceases.

How to Determine Your Liquidation Risk

A key measure to assess the risk of liquidation is to monitor your Maintenance Margin (USD).

Maintenance Margin (USD)

CoinUnited.io APP

CoinUnited.io Web Platform

1. Also displayed in the right-hand explanatory box on the position page.

2. Indicator: If your Total Net USD Value falls below the Maintenance Margin, liquidation starts.

3. Partial liquidation: In many cases, partial liquidation is sufficient to bring your account back above maintenance margin requirements, stopping further liquidation.

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