What is Margin Liquidation Service Fee on CoinEX?

When the leverage is forced, CoinEx will charge a certain percentage of your [principal to be repaid + interest to be repaid], and all of it will be injected into the leveraged insurance fund for the distribution of leveraged trades. It is called the forced liquidation fee.

Calculation formula:

Liquidation fee for forced liquidation of trading currency = (principal to be repaid of trading currency + interest to be repaid of trading currency) * proportion of liquidation fee

Pricing currency forced liquidation fee = (principal to be repaid in pricing currency + interest to be repaid in pricing currency) * liquidation fee ratio

The current forced liquidation fee ratio is 2%, and CoinEx will adjust the liquidation fee ratio according to market conditions in the future, and will make a separate announcement.

The forced liquidation fee is only charged once after the forced liquidation.

The liquidation fees collected will be injected into the leveraged insurance fund of the corresponding currency.

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Liquidation Service Fee Restriction

If the remaining total assets after forced liquidation (trading currency + pricing currency) ≥ total liquidation fee, the liquidation fee will be charged in full.

If the remaining total assets after liquidation (trading currency + pricing currency) < total liquidation fee, all remaining assets will be charged as liquidation fee. If there is no remaining assets or liquidation after forced liquidation, no forced liquidation fee will be charged. Sign up on CoinEx

How to reduce the risk rate of leverage liquidation?

You can reduce the risk rate of leverage liquidation in the following three ways:

Method 1: Reasonable use of leverage
Taking the BTC/USDT leveraged market as an example, assuming that the leveraged market supports a maximum leverage of 5 times, when borrowing currency, you should control the leverage ratio through the amount of borrowed currency according to the risk rate you can bear . If your principal is 10 USDT, you can borrow up to 40 USDT. At this time, you can only borrow 10 USDT, which is equivalent to only using 2 times leverage.
Method 2: Timely stop loss
When the “leverage risk rate” is close to the “forced liquidation risk rate”, you can reduce the risk of being liquidated by reducing the number of positions and stopping losses appropriately.
Method 3: Margin Call
You can also transfer assets to a leveraged account to add margin, thereby reducing the risk of being liquidated.