Bitget Futures — Leverage and Risk Management

[Estimated reading time: 5 mins]

Bitget uses the mark price for liquidation to help prevent market crashes and manipulation. Leverage and risk are assessed based on a user's total position risk under a specific margin coin. For more details, refer to the Position Tiers page.

Cross margin liquidation

Liquidation in cross margin mode occurs when the total equity of the cross margin account (excluding isolated margin and unrealized PnL from isolated margin) falls below the maintenance margin, resulting in a margin ratio of 100%.

Isolated mode liquidation

Liquidation in isolated margin mode occurs when the isolated margin and unrealized PnL falls below the maintenance margin, resulting in a margin ratio of 100%.

Bitget uses a gradual de-leveraging method as a risk control measure to minimize user losses during liquidation while retaining positions whenever possible.

Risk Control Measures

When a risk event occurs, the following actions will be taken:

1. Order cancellation: In isolated margin mode, only open or close orders related to the affected position will be canceled. In cross margin mode, all open or close orders (including those in isolated margin mode) will be canceled.

2. Netting: In hedging mode, opposing long and short positions across all trading pairs will be netted out (exclusing isolated margin positions).

3. Partial liquidation: Leverage will be reduced by two tiers at a time (excluding isolated margin positions).

4. Liquidation: Remaining positions (excluding isolated margin positions) will be liquidated through a flash order.

Note: When risk control is triggered, your trades will be temporarily taken over by the system. The liquidation price will not be displayed in trading records or candlestick charts. All other operations will be restricted until risk control processing is complete.

FAQ

1. What is the mark price used for in Bitget Futures?

The mark price is used for liquidation to help prevent market crashes and manipulation.

2. When does liquidation occur in cross margin mode?

Liquidation in cross margin mode occurs when the total equity of the cross margin account (excluding isolated margin and unrealized PnL from isolated margin) falls below the maintenance margin, resulting in a margin ratio of 100%.

3. When does liquidation occur in isolated margin mode?

Liquidation in isolated margin mode occurs when the isolated margin and unrealized PnL falls below the maintenance margin, resulting in a margin ratio of 100%.

4. What happens to trades during a risk event?

When risk control is triggered, trades are temporarily taken over by the system. The liquidation price will not be shown in trading records or charts, and all other operations are restricted until risk control processing is complete.

Disclaimer and Risk Warning

All trading tutorials provided by Bitget are for educational purposes only and should not be considered financial advice. The strategies and examples shared are for illustrative purposes and may not reflect actual market conditions. Cryptocurrency trading involves significant risks, including the potential loss of your funds. Past performance does not guarantee future results. Always conduct thorough research and understand the risks involved. Bitget is not responsible for any trading decisions made by users.